Shares of Paytm’s parent company One97 Communications surged 4% to Rs 697.5 per share on the BSE in intraday trade on Friday, ahead of the company’s March quarter results for FY23 (Q4FY23). At 10:30 am, the stock was up 3.5%, while the benchmark S&P BSE Sensex was down 0.34%.
The fintech company’s shares have risen 26% so far this calendar year, compared with a gain of 1.5% in the benchmark S&P BSE Sensex.
Goldman Sachs expects Paytm’s revenue to grow 49% year-over-year, with an adjusted Ebitda margin of 10%.
Domestically, domestic brokerage YES Securities expects total operating income to rise 17.8% quarter-on-quarter to Rs 2,430 crore. The brokerage has previously raised its target price on the stock to Rs 700 from Rs 600.
In its business update for Q4FY23, Paytm said that its gross merchandise value (GMV) grew by 40% in the quarter compared to the same period last year. The GMV at the end of Q4FY23 was Rs 3.62 trillion from Rs 2.59 trillion in Q4FY22.
While total loans disbursed jumped 253% to Rs 12,554 crore in Q4FY23 from Rs 3,553 crore in Q4FY22, loans rose 82% from 6.5 million to 11.9 million in the same period.
“We continue to strengthen our leadership in offline payments, with 6.8 million merchants now paying subscriptions for payment devices, an increase of 1 million in the quarter ended March 2023. With our subscription as a service model, strong adoption of devices drives subscription revenue and higher payout volumes while increasing the funnel for our merchant loan disbursements,” Paytm said.
Brokerage Motilal Oswal Financial Services initiated coverage on Paytm last month with a “buy” call and a target price of Rs 865, given the growth.
One 97 Communications Ltd (Paytm) is India’s leading payment app and fintech player, providing payment, financial services, commerce and cloud service. It is one of the largest payment platforms, with an estimated GMV of around Rs 13.2 trillion in FY23 (Rs 8.5 trillion in FY22).