After falling around 3% in the previous session post Q1FY24 results, Paytm shares fell over 4% today to hit an intraday low of Rs 752 on NSE. So far this year, the stock has rallied more than 43%. The scrip hit an intraday high of Rs 820 per share on NSE.
Paytm on Friday reported a standalone net loss of Rs 358 crore, narrower than the net loss of Rs 645 crore in the same quarter last fiscal. The company’s revenue jumped 39% YoY to Rs 2,342 crore and its EBITDA before ESOP costs grew to Rs 84 crore as compared to Rs 52 crore in Q4FY23 (excluding UPI incentives) during the quarter under review
Share market analysts have turned bullish on Paytm stock after it posted strong Q1FY24 results. Most of the brokerages were impressed as Paytm’s profitability improved, resulting in another quarter of adjusted EBITDA profit. Analysts have raised Paytm’s target price to up to Rs 1,200 apiece, a potential rally of around 49% from the current market price of Rs 802 on NSE
Brokerage firms such as Citi, and Goldman Sachs see Paytm stock hitting a target price of Rs 1,200 apiece, where Citi and Goldman Sachs expect the stock to hit Rs 1,200 while JM Financial sees it at Rs 1,060, CLSA foresees it at Rs 1,050, BofA at Rs 1,020, Motilal Oswal at Rs 1,000 apiece and YES Securities at Rs 950. Morgan Stanley has pegged Paytm's target price at Rs 830 per share
Morgan Stanley has raised the target price on Paytm to Rs 830 apiece on higher EBITDA margin estimates, retaining an 'equal-weight' rating to the stock. The analysts added that the GMV growth continues to be driven by good MTU growth, expansion of the registered merchant base, and increased device penetration
Analysts at Citi have a 'buy' rating on Paytm stock with a raised target price of Rs 1,200. It says that the net payment margin is on upswing and ahead of estimates aided by lower interchange expenses. Similarly, Goldman Sachs has increased target price on the company’s stock to Rs 1,200 as analysts see Paytm as not only the fastest growing company within India internet names but also most profitable. Growth trajectory in payments device impresses analysts as they expect FY25 to be the first full year of positive net income
CLSA has raised the target price to Rs 1,050 with a ‘Buy’ rating on the stock. BofA expects the stock price to rally more than 21% to Rs 1,020 as it sees Paytm’s growth trajectory intact. It maintained a ‘Buy’ rating on the company’s stock price
Analysts at Motilal Oswal Financial Services maintained a 'buy' rating on Paytm stock with a target price of Rs 1,000 apiece. The brokerage continues to believe that Paytm will achieve earnings breakeven in FY25. "Paytm reported a largely in-line 1QFY24 with sustained momentum in GMV and robust growth in disbursements. We believe that consistent improvement in contribution margin and operating leverage will continue to drive operating profitability," it added
YES Securities has upgraded Paytm's rating to 'add' from 'neutral' earlier, and revised the target price upwards to Rs 950 apiece. JM Financial has also upgraded the target price to Rs 1,060 from Rs 855 earlier while maintaining a ‘Buy’ rating on the company’s stock. The brokerage believes that Paytm would be profitable by FY25 driven by its ability to consistently reduce its payment processing charges along with strong ramp-up in lending distribution business
“We maintain our positive stance on the stock and now see greater visibility on Paytm’s ability to sustain higher take rates on payments business for a larger time frame, and continued momentum in loan distribution business along with better performance metrics,” said JM Financial in its report