Paytm share price rose over 3 per cent in early deals on the BSE on Saturday, January 20, a day after the company reported its December quarter scorecard.
Paytm share price opened 2 per cent higher at ₹789.50 against the previous close of ₹773.90 and soon rose about 3 per cent to the level of ₹797.70. Around 9:20 am, the stock was 1.42 per cent up at ₹784.90 on the BSE.
One 97 Communications, the parent of Paytm, on Friday, announced its October-December quarter results for fiscal 2023-24 (Q3FY24), reporting a rise in revenue by 38 per cent to ₹2,850.5 crore, compared to ₹2,062.2 crore in the year-ago period, it said in a regulatory filing.
The digital payments firm said its consolidated net loss narrowed to ₹221 crore from ₹392 crore reported in the same quarter last financial year. The firm has not posted a net profit since it went public in November 2021.
However, Paytm reported a marginal increase of 13 per cent in revenue in every quarter, while the loss narrowed by 23 per cent.
The online payments app said that it earned a revenue of ₹1,730 crore from its payment business, which is a growth of 45 per cent year on year (YoY). Citing the reason for the growth, Paytm said that it was led by an increase in gross merchandise value (GMV) and higher subscription revenue.
Also, the net payment margin improved further by 63 per cent to ₹748 crore in Q3FY24, YoY.
Compared to ₹16,211 crore in the September quarter, Paytm disbursed total loans worth ₹15,535 crore for the quarter under review.
Also Read: Paytm Q3 Results: Revenue rises by 38% YoY to ₹2,850 crore; net loss narrows to ₹221.7 crore
Over the past month, Paytm’s stock has exhibited a remarkable surge of approximately 24 per cent, diverging significantly from the relatively flat performance of the equity benchmark Sensex during the same period.
However, a contrasting trend emerges when examining the three-month horizon, as Paytm’s share price experienced a decline of around 20 per cent against a 9 per cent uptick in the Sensex.
The last one year has seen a robust upward trajectory for Paytm’s shares, with an impressive ascent of 45 per cent. In contrast, the Sensex, over the same duration, recorded a more moderate gain of nearly 18 per cent.
Should you buy?
Sumeet Bagadia, Executive Director at Choice Broking underscored that Paytm shares are looking positive on the chart pattern and one can maintain a buy-on-dips strategy till the stock is trading above ₹750.
“Paytm share price may touch ₹825 to ₹850 levels once it sustains above ₹800,” said Bagadia.
Shiju Koothupalakkal, a technical analyst at Prabhudas Lilladher believes the scrip may become bullish after a decisive breach above ₹795 to ₹800 levels.
“Those who have Paytm shares in their stock portfolio are advised to hold the scrip with a stop loss of ₹740. Fresh investors can also buy the scrip at the current ₹765 level, maintaining a stop loss at ₹740,” said Koothupalakkal.
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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 20 Jan 2024, 09:24 AM IST