Paytm shares up 100% in seven months, turn multibagger; can it rise more?
Shares of One 97 Communications (Paytm) rose almost three per cent in morning trade on Thursday (June 15) to hit their fresh 52-week highs of ₹879.55, looking set to extend their gains into the third consecutive session.
Paytem shares have been on a bull run after they hit their 52-week lows of ₹439.60 in November. In just about seven months, the stock has gained 100 per cent to hit its fresh 52-week high. On a monthly basis, this stock has been in the green since last December.
Analysts believe the stock can rise even further and can go beyond the ₹1,000 mark.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers observed this counter has given a breakout on a weekly scale by taking out its previous swing high of ₹845 approximately and currently, it is trading well above it. From an indicator perspective, weekly RSI and Stochastics are hinting at bullish momentum in the coming few weeks.
“One can buy between ₹860-880 with an upside target of ₹1,020 and a stop loss would be ₹795 on a daily close basis,” said Patel.
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In Q4FY23, Paytm’s consolidated net loss narrowed sharply to ₹168.4 crore from ₹761.4 crore in Q4 of the previous year, aided by an increase in GMV, higher merchant subscription revenues, growth of loans disbursed, and full years’ UPI incentives reported during the quarter.
Its revenue from operations increased 51.5 per cent to ₹2,334.5 crore in Q4FY23, from ₹1,540.9 crore in Q4FY22.
The company’s operating performance improved in the current quarter also as Paytm in a BSE filing on June 5 said it continued witnessing the expansion of the consumer base with average monthly transacting users (MTU) at 9.2 crore for the quarter to date (average for April and May 2023), up 24 per cent year-on-year (YoY).
Besides, it said its leadership in payment monetisation continued in May, as subscription devices for payment devices like Soundbox and POS machines continued witnessing increased acceptance by merchants.
Recently Bank of America Securities (BofA Securities) upgraded Paytm to a ‘buy’ from a ‘neutral’ and raised the target price to ₹885 from ₹780 on solid revenue momentum and operational leverage.
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Disclaimer: The views and recommendations given in this article are those of individual analysts and brokerage firms. 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: 15 Jun 2023, 12:18 PM IST
