Paytm stock price: Yes Securities raises target price on expectations of healthy Q4 earnings
5 min read . Updated: 12 Apr 2023, 04:09 PM IST
Premium- So far in 2023, Paytm stock has gained by nearly 22% on D-Street. Yes Securities is the latest among the brokerages to upgrade its target price on Paytm to ₹700 per share compared to earlier ₹600 per share. However, the brokerage has maintained a Neutral rating on the fintech giant.
Paytm stock price: One 97 Communications aka Paytm traded in the red on Wednesday as investors booked profits. Paytm stock has skyrocketed by over 6.5% in the past seven trading sessions. Yes Securities is the latest to raise its target price on Paytm on expectations of healthy Q4 earnings.
At the time of writing, Paytm stock ended at ₹648.30 apiece down by 1.43% on BSE. The stock traded near its day's low of ₹644.35 apiece on the exchange. Its market cap is over ₹41,050 crore.
Paytm stock has been on a gaining spree from March 27th to April 11th. The upside during these days comes to around 6.51% in Paytm. Hence, investors are cashing in on their gains on Wednesday. Year-to-date, Paytm stock has zoomed by nearly 22% on Dalal Street.
Yes Securities is the latest among the brokerages to upgrade its target price on Paytm to ₹700 per share compared to earlier ₹600 per share. However, Yes Securities has maintained a "Neutral" rating on the fintech giant.
In its report, Yes Securities said that Paytm is likely to post healthy sequential growth in revenue on the back of steady loan disbursements and new device addition.
For Q4FY23, Paytm stock price: One 97 Communications aka Paytm traded in the red on Wednesday as investors booked profits. Paytm stock has skyrocketed by over 6.5% in the past seven trading sessions. Yes Securities is the latest to raise its target price on Paytm on expectations of healthy Q4 earnings.
At the time of writing, Paytm stock traded at ₹647.70 apiece down by 1.52% on BSE. The stock traded near its day's low of ₹644.35 apiece on the exchange. Its market cap is over ₹41,050 crore.
Paytm stock has been on a gaining spree from March 27th to April 11th. The upside during these days comes to around 6.51% in Paytm. Hence, investors are cashing in on their gains on Wednesday.
Yes Securities is the latest among the brokerages to upgrade its target price on Paytm to ₹700 per share compared to earlier ₹600 per share. However, Yes Securities has maintained a "Neutral" rating on the fintech giant.
In its report, Yes Securities said that Paytm is likely to post healthy sequential growth in revenue on the back of steady loan disbursements and new device addition.
For Q4FY23, Yes Securities expects overall growth in revenue from operations of 17.8% QoQ at ₹2,430 crore. This implies a 12.2% upward revision from the previously published estimates. It forecasts EBITDA after ESOP (before other income) is projected to be ₹(248 crore), an upward revision from the previous estimate of ₹(528 crore). It also sees an increase in PAT from ₹(508 crore) to ₹(307 crore). It estimates an improvement in Payment Processing Charges (PPC) as a proportion of Payments Revenue to 63%, compared with 64% in Q2FY23.
Further, on Paytm, the brokerage has arrived at a total expenses (ex PPC) growth of 11% QoQ, compared with 5% in Q2FY23, resulting in an EBITDA margin (ex other income and after ESOP cost) of (-22.4%), an improvement of 572 bps QoQ.
Paytm has already announced its fourth quarterly operational performance for FY23. Between January to March 2023, the company's average monthly transacting users (MTU) stood at 90 million up 27% YoY, reflecting the continued expansion of our customer base. Merchant Payment Volumes (GMV) for the quarter stood at ₹3.62 lakh crore ($44 billion) -- registering a growth of 40% YoY.
The fintech's loan distribution business (in partnership with our lender partners) continues to gain scale with disbursements of ₹4,468 crore ($544 million, YoY growth of 206%) and 4.1 million loans (y-o-y growth of 63%) disbursed in the month of March 2023 through the Paytm platform. In Q4FY23, the total disbursements rose by 253% YoY to ₹12,554 crore ($1,528 million).
Paytm also continued to strengthen its leadership in offline payments, with 6.8 million merchants now paying subscriptions for payment devices, an increase of 1 million in the quarter that ended March 2023.
Paytm's payments consumer and merchant base offers a large addressable market, thereby providing a long runway for growth. The company continues to work with its partners to remain focused on the quality of the book.
Further, on Paytm, the brokerage arrives at a Total Expenses (ex PPC) growth of 11% QoQ, compared with 5% in 2QFY23, resulting in an EBITDA margin (ex Other Income and after ESOP cost) of -22.4%, an improvement of 572 bps QoQ.
Paytm has already announced its fourth quarterly operational performance for FY23. Between January to March 2023, the company's average monthly transacting users (MTU) stood at 90 million up 27% YoY, reflecting the continued expansion of our customer base. Merchant Payment Volumes (GMV) for the quarter stood at ₹3.62 lakh crore ($44 billion) -- registering a growth of 40% YoY.
The fintech's loan distribution business (in partnership with our lender partners) continues to gain scale with disbursements of ₹4,468 crore ($544 million, YoY growth of 206%) and 4.1 million loans (y-o-y growth of 63%) disbursed in the month of March 2023 through the Paytm platform. In Q4FY23, the total disbursements rose by 253% YoY to ₹12,554 crore ($1,528 million).
Paytm also continued to strengthen its leadership in offline payments, with 6.8 million merchants now paying subscriptions for payment devices, an increase of 1 million in the quarter that ended March 2023.
Paytm's payments consumer and merchant base offers a large addressable market, thereby providing a long runway for growth. The company continues to work with its partners to remain focused on the quality of the book.
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