Citi has issued a Buy call on Paytm with a target price of Rs 900 per share, adding that the December quarter results were a 'solid beat' versus expectations, primarily driven by lower corporate overheads.
Shares of Paytm were under pressure, down well over five percent during the trading session on January 21.
While the net payment margin was slightly below estimates, Paytm’s merchant business, including devices and Default Loss Guarantee (DLG) in Digital Lending continues to demonstrate robust stickiness and sustained growth, said Citi.
Fintech major Paytm had on January 20 said that its net loss for the December quarter narrowed to Rs 208 crore, compared to Rs 220 crore in the same period last year.
The company appears securely on track to achieve adjusted EBITDA break-even, excluding UPI incentives, in the March quarter, said Citi.
However, the company got an Underperform rating from Macquarie, with a target price of Rs 730 per share. JM Financial had on January 20 reinitiated coverage with a buy rating and a price target of Rs 1250 per share.
Paytm, through its subsidiary Paytm Cloud Tech, had on January 20 announced that it will be setting up businesses in UAE, Saudi Arabia and Singapore to leverage its tech-enabled merchant payments and financial services in 'similar' international markets, and seek local licenses and partnerships. Paytm is exploring various options including organic expansion as well as local licenses, strategic investment and partnerships in these international markets.
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2025-01-21T03:51:50Z