As per regulatory filings, Sharma bought 1,00,552 shares worth Rs. 6.31 crores on 30th May, and later on 31st May, he bought a total of 71,469 shares 4.68 crores.
That said, Sharma’s latest purchases are cumulatively approx. in 11 crores Paytm,
Notably, Sharma was not allowed to buy shares in Paytm for at least six months as he was selling the shareholding in the company’s public offering (IPOHowever, with that restriction now removed, Sharma went ahead and bought Paytm shares.
Closed on the stock of Paytm on Friday 629.10 each, an increase of 2.64%. At closing price, the market valuation of Paytm was 40,812.51 crore.
Paytm’s IPO was launched between November 8 and November 11 last year. IPO’s price band was from 2080 2150 per equity share. The size of the IPO was 18,300 crores.
Sharma had written a letter addressed to Paytm shareholders in early April, in which he said the company would achieve operating EBITDA (EBITDA before ESOP cost) over the next six quarters.
Sharma wrote, “We are encouraged by the pace of our business, the scale of monetization, and operational leverage. We expect this to continue, and I believe we will see growth in the next 6 quarters (ie EBITDA before ESOP cost, and Should conduct EBITDA breakeven by quarter-end (September 2023), well ahead of most analysts’ estimates. The important thing is that we are going to achieve this without compromising on any of our growth plans,” reported PTI. Went.
Experts are optimistic about Paytm shares after FY12 earnings.
“We estimate that there are 18 million-19 million consumers (15% of MTU) and 1.2 million merchants (>10% with Paytm devices),” said Kunal Shah, Chintan Shah and Vishal Singh, research analysts at ICICI Securities, in their research note last month. Merchants) and >3% of the total merchant base will be leveraging the financing product through Paytm platform by FY26E. We anticipate financial services revenue to grow at a CAGR of 58% in FY22-FY26E, comprising 19 of the operating revenue % is included (<5% / to <10% in FY21/FY22)."
The trio further added, “Management is confident of achieving operating profitability (positive EBITDA before ESOP cost) by Q2 of FY24. Positive by FY25E. With an unchanged target price of Rs 1,285 based on customer lifetime value methodology Buy keep.”
Moreover, the latest proposal to link credit cards with UPI is expected to be a win for full-stack payment and financial solutions provider Paytm.
Highlighting stronger and better monetization from payments to financial services vertical and rapid scale, Goldman Sachs backed Paytm’s path to profitability and reiterated its ‘Buy’ rating on the stock with a target price. 1,070 on 22 May 2022.
On June 7, Citi expressed confidence in Paytm’s future growth and profitability plans in a note, citing continued improvements in payment monetization and rapid scaling up of financial services. It has resumed its coverage for Paytm stock with a ‘Buy’ rating and a target price of Rs. 915.
Global brokerages Citi and Goldman Sachs are also optimistic about Paytm and expect the company to benefit from the credit card linkage with UPI.
Goldman said in its note, “For Paytm, we expect a positive impact on the company’s payments vertical (higher use of MDR-bearing credit cards), while there may be some increase in competitive intensity for Paytm’s BNPL product.” However, we highlight the better user experience of Paytm’s one-click checkout.”
“Paytm’s BNPL offering may have more competition (see above) but merchant adoption of Paytm postpaid should be higher than credit cards on UPI, as the MDR (borne by merchants) for postpaid will be much lower than that of credit cards,” City added a comment.
Paytm shares hit 52-week high 1,961.05 last year, however, the shares have fallen heavily since then. It touched a 52-week low of Rs. 511 last month due to market volatility this year amid macroeconomic background.