Shares of Paytm jumped as much as 20% to INR 669.6 during the early trading hours today
Besides the upbeat results, the Indian government’s move to block over 232 apps with Chinese links, including 94 lending apps, also seems to have helped the company’s stock
Paytm’s lending business is witnessing sharp growth, adding 14 Lakh new borrowers in Q3. It disbursed 1.04 Cr loans in the quarter, up 137% YoY
Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
Shares of the fintech major Paytm rose for the second straight session on Tuesday (February 7) to close at INR 589.25, up 5.6% on the BSE.
The shares jumped as much as 20% to INR 669.6 during the early trading hours today.
Paytm, one of the worst-performing new-age tech stocks of 2022, witnessed a significant rally after it said that it achieved adjusted EBITDA profitability in the December quarter of FY23, three quarters ahead of its projection. The startup also reported about a 50% year-on-year (YoY) decline in its net loss to INR 392.1 Cr during the quarter and over a 41% YoY increase in operating revenue to INR 2,062 Cr.
Besides the upbeat results, the Indian government’s move to block over 232 apps with Chinese links, including 94 lending apps, also seems to have helped the company’s stock. Paytm’s competitor Naspers-backed PayU’s LazyPay is also caught in this crossfire.
Meanwhile, Paytm’s lending business is witnessing sharp growth, adding 14 Lakh new borrowers in Q3. Paytm also disbursed 1.04 Cr loans in the quarter, up 137% YoY, and processed loans worth INR 9,958 Cr, up 357% YoY.
After the company’s Q3 results, a few brokerages including Goldman Sachs, Citigroup, and CLSA raised their price target (PT) on Paytm.
CLSA raised its PT to INR 750 from INR 650, implying a 27% upside to its last close. The brokerage believes that Paytm’s positive EBITDA journey is sustainable.
Citigroup also raised its PT on Paytm to INR 1,061 from INR 1,055 earlier, while Goldman Sachs increased it to INR 1,150 from INR 1,120.
Goldman Sachs sees the adjusted EBITDA margin to not only sustain but also to expand to 6% in the March 2023 quarter.
In another positive news for the company, Paytm Payments Bank Limited (PPBL) today said that it has collaborated with the National Payments Corporation of India (NPCI) to introduce ‘RuPay Credit Card on UPI’, which would enable users to link RuPay credit cards to UPI for all merchant payments on the Paytm app.
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.