FinanceBusinessMarketStock Market
Trending

Paytm Shares Gained For The Third Trading Day In A Row. What Is Fueling The Stock To Rise?

Paytm shares increased by more than 6% to $624 per share in opening deals on the BSE.

In Wednesday’s opening deals on the BSE, shares of One 97 Communications Ltd (Paytm) increased by more than 6% to $624 per share after the company disclosed its business update for January 2023. During that time, its merchant payment volumes (GMV) increased by 44% yearly to reach 1.2 lakh crore (YoY). In January 2023, it disbursed loans totaling 3,928 crores.

Following the fintech company’s announcement of its first-ever quarterly operating profit as a publicly traded company and the company’s losses also narrowing during the third quarter of the current fiscal year, the stock increased for a third day in a row (Q3FY23). Major international brokerages have also increased their target price on the store in response to Paytm’s strong Q3 results.

Paytm‘s net loss for the three months ending in December decreased from 779 crores to 392 crores, while the company’s operating revenue increased by 42% to 2,062 crores.

Brokers like Citi, CLSA, and Goldman Sachs have advised buying the stock while raising their target prices, while BofA has kept its ‘neutral’ rating on the stock following Q3 results.

“I am very happy to share that our company has achieved this milestone of EBITDA before ESOP cost profitability in the December 2022 quarter itself. This is three quarters ahead of our projections. “With our focus on growth and a close eye on operational risk and compliances, I am very confident that we will soon achieve our next milestone of becoming a free cash flow generating company,” said Vijay Shekhar Sharma, the company’s founder, and CEO.

In its business update on Wednesday, the company has continued to concentrate on payment volumes that produce profits for us, either through net payments margin or from direct upsell potential, over the past few quarters. Its number of merchants paying a subscription for payment devices has reached 6.1 million, an increase of 0.3 Mn from January, with a focus on creating additional payment monetization.

Also Read | Digital Currency – A Virtual Twist to the Physical Currency

Related Articles

Back to top button