Paytm share price jumps over 90% from life-time low. Is more steam left?
Paytm share price has been in uptrend for last seven months after hitting life-time low of ₹438.35 apiece on NSE at the end of November 2022. The fintech stock has risen more than 90 per cent from its record low. Experts believe that the stock may vbecome highly bullish and can hit ₹1000 apiece levels once the stock gives breakout at ₹900 apiece levels on closing basis. They went on to add that the Paytm managed to narrow down its consolidated net loss while its YoY revenue grew over 50 per cent in Q4FY23.
Speaking on the reason for Paytm share price rally, Anuj Gupta, Vice President — Research at IIFL Securities said, “Paytm share price has been rising for the last six to seven months due to improved financials by the digital financial services company One 97 Communications. Paytm has been able to report improvement in consolidated net loss in Q3 and Q4 of financial year 2022-23. In Q3FY23, Paytm reported consolidated net loss narrowing down to ₹392 crore that further improved to ₹167.50 crore in Q4FY23 results. In Q4Fy23, Paytm reported rise in revenue over 50 per cent YoY, which is also a reason for investors buying the stock.”
Paytm share price outlook
On what Paytm shares’ chart pattern suggests, Sumeet Bagadia, Executive Director at Choice Broking said, “Paytm share price has been in uptrend and there can be some correction possible at current market price and it may go towards ₹800 apiece levels in near term. However, if the bull trend continues and the stock breaches ₹900 resistance on closing basis, it may become highly bullish.”
Sumeet Bagadia advised positional investors to avoid taking any fresh position at current levels and suggested fresh buying only above ₹900 apiece levels.
Anuj Gupta of IIFL Securities said that Paytm share price may go up to ₹1,000 per share levels once the stock picks up next leg of fresh rally.
Paytm Q4FY23 results
Fintech giant, Paytm’s consolidated net loss narrowed sharply to ₹168.4 crore in the fourth quarter of FY23, compared to a loss of ₹761.4 crore in Q4 of the previous year. The performance was aided by an increase in GMV, higher merchant subscription revenues, growth of loans disbursed, and full years’ UPI incentives reported during the quarter. Paytm had posted a loss of ₹392 crore in December 2022 quarter.
In terms of the top-line front, Paytm’s revenue from operations stood at ₹2,334.5 crore in Q4FY23, registering a growth of 51.5 per cent from ₹1,540.9 crore in Q4FY22 and up by 13.2 per cent from ₹2,062.2 crore.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 23 Jun 2023, 01:42 PM IST
