The price of Paytm stock increased today by 7.44% to Rs. 563.95 from its previous BSE close of Rs. 524.90. Today’s opening price for the stock was Rs 550, up 4.78%.

On Monday, shares of Paytm (traded as One97 Communications) increased more than 7% after the supplier of payment gateway services turned positive at the operating level three quarters earlier than anticipated. In Q3FY23, it recorded EBITDA before ESOP of Rs 31 crore.

Additionally, the company reduced its Q3 loss from Rs 779 crore to Rs 392 crore during the quarter that ended in December.

Share price check: Paytm

The price of Paytm stock increased today by 7.44% to Rs. 563.95 from its previous BSE close of Rs. 524.90. Today’s opening price for the stock was Rs 550, up 4.78%.

Paytm stock was trading above its five-day, twenty-day, and fifty-day moving averages, but below its one-hundred-day and two-hundred-day moving averages.

The stock, meanwhile, has dropped 42.71 percent in a year but has up 2.88 percent in 2023.

Paytm’s BSE market capitalization increased to Rs 35,810 crore. A total of 0.88 lakh shares of the company were traded for a total revenue of Rs. 5.01 crore.

On February 7, 2022, the stock reached a 52-week high of Rs. 984.90, and on November 24, 2022, it reached a 52-week low of Rs. 439.60. In comparison to its IPO offering price of Rs 1,955 on November 18, 2021, the large cap stock is still down Rs 1391, or 71.15 percent.

The SoftBank-backed company’s revenue increased 42% to Rs 2,062 crore in Q3FY23 from Rs 1,456 crore in Q3FY22.

Regarding the Paytm stock, BofA Securities takes a neutral approach.

“Paytm reached adjusted EBITDA breakeven three quarters earlier than the management’s initial forecast of a goal September of 23 and market expectations. This was mostly due to an increase in high margin lending revenue, an increase in merchant subscription, and a decrease in payment processing and promotional fees “BofA Securities stated.

Following Q3 results, Goldman Sachs stated: “Due to the sustained mix shift towards UPI and worse than anticipated cloud revenues, we have revised our revenue expectations for FY23E–FY25E downward by up to 3% as a result of the 3QFY23 results. Our EBITDA projections, however, show a strong rise on better than anticipated expense control through February 5, 2023. We have increased our target price for the next 12 months from Rs. 1,120 to Rs. 1,150, using the same 14% and 5% WACC and terminal growth assumptions. Reiterating our Buy recommendation (on Conviction List), we think Paytm’s current share price offers a compelling entry point into one of India’s most popular and lucrative fintech platforms.”

“Paytm is a company that was founded from scratch with a strong focus on Digital India.

In under 10 years, we’ve gone from releasing our first app to becoming a verb in India to reaching an operating EBITDA profitability milestone! “tweeted CEO Vijay Shekhar Sharma.

As a result of improved payments profitability and the expansion of high margin businesses like loan distribution, the company’s contribution profit increased to 51% of sales in the third quarter of 2013 from 31% in the third quarter of 2012 and 44% in the second quarter, it added.

In comparison to a year ago, the company’s net payments margin—payments income excluding processing expenses—more than doubled to Rs 459 crore. Operating profit margin increased from a negative 27% a year earlier to 1.5%.
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