AFPNEW DELHI: Institutional investors -- foreign portfolio investors and mutual funds -- upped their stakes in (Paytm) in the June quarter. The quarter saw shares of Paytm hitting a 52-week low of Rs 511 on May 12, before staging a smart rebound. The new-age stock rose 28 per cent for the quarter and is up 45 per cent from the May low level.
Data showed the number of foreign portfolio investors (FPIs) jumped to 83 from 54 in the March quarter, taking the number of shares held by them to 3,53,72,428 from 2,86,80,948 in the previous March quarter. With this, FPIs owned a 5.45 per cent stake in against 4.42 per cent in the March quarter.
The number of mutual funds holding stake in the company also went to 19 from three, taking the number of shares held by them to 74,02,309 from 68,19,790 quarter-on-quarter (QoQ).
For the June quarter, Paytm loan disbursements jumped over five-fold to 84.78 lakh which was nine times higher in terms of value at Rs 5,554 crore year-on-year, reaching an annualised run rate of Rs 24,000 crore.
The total merchant payment volume or GMV (gross merchandise value) of the company more than doubled to Rs 2.96 lakh crore year-on-year from Rs 1.47 lakh crore.
Despite the recent rally, the scrip still trades at a 65 per cent discount to its IPO issue price of Rs 2,150.
Dolat Capital Market on Tuesday recommended a 'buy' on the stock with a target of Rs 1,400.
Operating metrics in the June quarter such as GMV, MTU, devices and loan disbursements were up 101 per cent, 49 per cent, 301 per cent and 779 per cent on a YoY basis, respectively, which the brokerage said suggested sustained high-growth momentum with rising contribution profit.
Dolat Capital said Paytm's biggest advantage lies in having no real-world marginal costs attached for most business use cases, a rare phenomenon for a platform.
"It has reduced operating losses by Rs 580 million over Q2FY22 to Q4FY22, despite robust growth of 42 per cent. We believe Paytm’s cost management will lead to the accrual of strong incentive-based revenue stream on its Personal/Merchant loan portfolio in FY23, and can add Rs 0.5 billion directly to operating profits," it said.
The brokerage said that the introduction of platform fees on utility payments, scaled improvement in payment processing charges and overall operating leverage, will ensure a timely path to profitability by H1FY24, and the eventual creation of large profit pools.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
Data showed the number of foreign portfolio investors (FPIs) jumped to 83 from 54 in the March quarter, taking the number of shares held by them to 3,53,72,428 from 2,86,80,948 in the previous March quarter. With this, FPIs owned a 5.45 per cent stake in against 4.42 per cent in the March quarter.
The number of mutual funds holding stake in the company also went to 19 from three, taking the number of shares held by them to 74,02,309 from 68,19,790 quarter-on-quarter (QoQ).
For the June quarter, Paytm loan disbursements jumped over five-fold to 84.78 lakh which was nine times higher in terms of value at Rs 5,554 crore year-on-year, reaching an annualised run rate of Rs 24,000 crore.
The total merchant payment volume or GMV (gross merchandise value) of the company more than doubled to Rs 2.96 lakh crore year-on-year from Rs 1.47 lakh crore.
Despite the recent rally, the scrip still trades at a 65 per cent discount to its IPO issue price of Rs 2,150.
Dolat Capital Market on Tuesday recommended a 'buy' on the stock with a target of Rs 1,400.
Operating metrics in the June quarter such as GMV, MTU, devices and loan disbursements were up 101 per cent, 49 per cent, 301 per cent and 779 per cent on a YoY basis, respectively, which the brokerage said suggested sustained high-growth momentum with rising contribution profit.
Dolat Capital said Paytm's biggest advantage lies in having no real-world marginal costs attached for most business use cases, a rare phenomenon for a platform.
"It has reduced operating losses by Rs 580 million over Q2FY22 to Q4FY22, despite robust growth of 42 per cent. We believe Paytm’s cost management will lead to the accrual of strong incentive-based revenue stream on its Personal/Merchant loan portfolio in FY23, and can add Rs 0.5 billion directly to operating profits," it said.
The brokerage said that the introduction of platform fees on utility payments, scaled improvement in payment processing charges and overall operating leverage, will ensure a timely path to profitability by H1FY24, and the eventual creation of large profit pools.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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