Paytm Sets Records, Surpasses Expectations, and Reaches New 52-Week High
On June 14, One 97 Communication, also known as Paytm, increased 2.84%, setting a new 52-week high of INR 864 on the NSE. With a market capitalization of INR 54,314 crore, the firm has returned nearly 19% in a month and 41% in a year. This represents a gain of INR 1,499 crore in a single day.
Its share price is still far below the IPO price, nevertheless. Since its initial public offering on November 18, 2021, Paytm has been under pressure, and it is now trading 61% and 56% below its issue price of INR 2150. However, the stock has lately picked up steam thanks to above-average quarterly earnings and optimistic management projections.
Its losses decreased to INR 168 crore in the March quarter from INR 393 crore and INR 761 crore, respectively, in the same period last year. Consolidated operating revenue grew by more than 52% in a single year to INR 2,335 crore. Last week, Paytm revealed a strong monthly performance, supported by a rise in the number of subscription devices for payment gadgets.
Currently, around 75 lakh shops are paying for its items, including the Soundbox and POS devices. With 9.2 crore average monthly transactional customers for the quarter to far (average for April and May 2023), a 24% year-over-year growth, the consumer base is still growing.
The Gross Merchandise Volume (GMV) for the previous two months was 2.65 lakh crore, as well. The business said in a statement with the stock market that “our focus over the last few quarters has remained on payment volumes that generate profitability for us, either through net payments margin or direct upsell potential.”
The First Loss Default Guarantee (FLDG) program of the RBI is anticipated to be advantageous to Paytm as well. Under FLDG, fintechs assist banks and NBFCs in recovering losses from payment defaults by clients. Paytm now has seven loan partners and plans to add three to four more by the end of the year.
“We believe that Paytm is in for some strong rating in the years to come as the company settles into existing businesses and starts delivering bottom line growth,” said Sharad Avasthi, head of research (PCG), SMIFS. In FY26, the firm may record profits of around 17 INR.
