Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Paytm: Top brokerages, such as ICICI Securities, Axis, Dolat lift Paytm's target price to Rs. 1250

Posted On: 2023-07-11 11:23:31 (Time Zone: IST)


Brokerages see Paytm, India's leading payments and financial services company and the pioneer of QR and mobile payments, to post healthy growth in revenue in the first quarter of the FY24, after steady loan disbursements and new device addition. Domestic brokerage firm Dolat Capital has raised the target price on Paytm to ?1,250 apiece on its strong numbers, the fintech pioneer reported in its June monthly business update.

Similarly, ICICI Securities has reiterated Paytm's target price at ?1,055 apiece, maintaining buy rating, whereas YES Securities raised the target price on Paytm to ?900 per share. While Axis Capital has maintained its buy rating on the fintech stock with target price at ?1,000, a potential rally of 17%.

YES Securities penciled in an overall growth in Revenue from operations of 58.5% YoY, to ?26,619 million. "We forecast Payment Processing Charges (PPC) as a proportion of Payments Revenue to be at 62%, a metric that was 54% in 4QFY23 due to UPI incentive," it added. It has also arrived at a Total Expenses (ex PPC) growth of 9% QoQ, compared with a growth of 2% in 4QFY23, resulting in an EBITDA margin (ex Other Income and after ESOP cost) of -7.8%, a deterioration of -227 bps QoQ as Paytm had received UPI incentives in 4QFY23.

"Paytm's monthly performance reported double digit GMV/MTU/Loan YoY growth in Q1, and we expect improved operational efficiency," analysts at Dolat Capital added. The brokerage firm sees Paytm's revenue at ?22,949 million, a rise of 36.6% YoY in Q1FY24.

"Paytm's growth continues in cards, UPI ecosystem, and disbursement trends too remain strong," analysts at ICICI Securities noted. It also foresees Paytm's adjusted EBITDA of ?720 million. "It also estimates that Paytm's Revenues from financial services to grow 12% despite 18% QoQ increase in total value of loan disbursed in Q1FY24. Paytm reported a strong May 2023 in terms of value of loans disbursed along with total subscription-paying merchants and GMV growth. MTUs remain stable, it added.

Axis Capital noted that healthy revenue growth and improvement in cash flow is likely to lead to a higher adjusted EBITDA. It estimates Paytm's Adjusted EBITDA at ?600 mn in Q1FY24 versus ?520 mn in Q4FY23. Moreover, it foresees Revenue from operations at ?108 billion in the entire FY24.

Paytm has achieved a new milestone in merchant payments with 79 Lakh devices deployed while the Gross Merchandise Value (GMV) for the quarter (for three months ended June 2023) stood at ?4.05 Lakh Cr, YoY growth of 37%. Consumer engagement on the Paytm Super App remained high with the average monthly transacting users (MTU) at 9.2 Cr, growth of 23% YoY.

Paytm posted revenues of $977.6 million or ?7,990 crore for the entire FY23, becoming India's highest earning new-age company. Tech innovator's revenues grew over 60% on-year to inch closer to becoming a billion dollar revenue company, driven by payments monetization and growing scale of its loan distribution business.


Click here to send ur comments or to feedback@equitybulls.com

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

ICRA revises banking sector outlook to Stable from Positive

Massive shift in career aspirations as 8 out of 10 professionals eye new career paths this appraisal season, reports apna.co

ICRA: Annual securitisation volumes estimated at Rs. 1.88 lakh crore for FY2024

46% of women opted for used cars in March 2024 in the country: Spinny Reports

Addressing data privacy, security and ethical challenges is essential for the responsible adoption of GenAI in healthcare: PwC India report

Retail pools continue to display stable performance across various asset classes: ICRA

ICRA predicts small finance banks will raise over Rs 10,000 crore in FY 2024, up from Rs 6,400 crore in FY2023

CRISIL Ratings: Complex fertilisers volume to grow 4-5% next fiscal

Issuances of securitised debt instruments (SDI) by corporate entities to rise to Rs 100 crore in FY2024: ICRA

Godrej Interio's 'HomeScapes' Study reveals Indians want ‘Me-Time’ at home

GDP growth to moderate to 6.0% in Q3 FY2024, led by agriculture and industry: ICRA

Indian stock exchanges rank first in the world in terms of the number of IPOs in 2023

CRISIL Ratings: After soaring this fiscal, airlines to land >20% operating profit growth next fiscal

Rising frauds propel demand for AI/ML strategies: Experian Study

Cement makers to add 150-160 MTPA capacity by fiscal 2028 - CRISIL

Investor exuberance propelling broking industry performance, MTF achieves a new high: ICRA

CRISIL Ratings: Securitisation volume up ~20% in first nine months of this fiscal

India is fastest growing large economy globally in CY2023-CY 2024 - Pantomath Report

CRISIL Ratings: Market share of gold-loan NBFCs steady despite bank competition

CRISIL Ratings: Vehicle loan AUM to vroom past Rs 8 lakh crore next fiscal

45% of Newbie traders claim that 'not knowing enough' is the primary reason for losses incurred in Futures & Options trading - Sharekhan's survey reveals

CRISIL Ratings: Agri pump makers to see 7-9% revenue growth next fiscal

Indian mutual fund industry likely to sustain its strong inflows in 2024: ICRA Analytics

CRISIL Ratings: Operating profit of offshore rig operators to swell 30% next fiscal

CRISIL Ratings: Organised F&G retailer revenue to grow in mid-teens next fiscal

CRISIL Ratings: Shippers see a further revenue dip of 5-7% next fiscal as charter rates course correct

82% of professionals are concerned about job redundancy due to emerging technologies: Hero Vired Report

UPI transactions witnesses 118% rise at retail stores in 2023: PayNearby Report

Happy Forgings Limited - IPO - A trusted supplier for several Indian and Global OEMs - Reliance Securities

CRISIL Ratings: Penetration of electric buses set to double next fiscal

India's refined copper consumption to grow by 11% in FY2024, despite global headwinds: ICRA

CRISIL Market Intelligence and Analytics - Curb on cane juice for ethanol - Sugar output lift

Stable Repo Rates to Keep the Momentum Going for the Housing Market - Anuj Puri, Chairman - ANAROCK Group

Payback period for investment in sustainable warehouses come down to three years in India: A JLL - IndoSpace report

CRISIL Ratings - Profit margins of cotton yarn spinners to plunge 250-350 bps to decadal lows of 7-8% this fiscal

Government, PSUs, and Defence sector experience 14% upsurge in hiring: foundit Insights Tracker

CRISIL Ratings: Spirits high for organised liquor makers, revenues seen up 13%

Corporate bond market to more than double by fiscal 2030 - CRISIL

Gas Utilities : Gas consumption at record highs, growth now to trickle - Kotak Institutional Equities

Emkay and Geojit increase target prices of LIC, expect over 20% upside

CRISIL Ratings: Mall area to rise by 35% over the medium term on retail surge

Crop & Chemical Dashboard: Bottom is near, recovery unclear - Kotak Institutional Equities

Loan sell-downs of personal loan pools may see a temporary pause following the RBI's decision to increase risk weights: ICRA

India Surges Ahead in 5G Deployment, Paving the Way for a High-Tech Future!

CRISIL Ratings: Construction equipment revenue to grow 14-15% this fiscal

India to contribute 22% to the Global ER&D sourcing market by FY30: BCG-nasscom Report

CRISIL Ratings: In a decadal first, revenue of agrochemicals makers to slip ~3% on tepid demand this fiscal

CRISIL Ratings: Flexible packaging industry stares at decadal low profitability as oversupply stings

CRISIL Ratings: Domestic demand, softer cotton prices to sustain RMG growth

CRISIL Ratings: Higher workplace occupancy to light up cigarette volume 7-9%


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020