Paytm Share Soars More Than 6% On BSE, Is The Stock Worth Buying?

Shares of One 97 Communications Ltd (Paytm) witnessed a rally of 6.61% in trade on June 8, 2023. Current market price of Paytm share is Rs 775.05 per share till 11:26 am. Motilal Oswal and ICICI Securities are bullish on Paytm stock and assigned buy call. If you buy Paytm share now, you can obtain likely return of 36%. Check details below:

Paytm Stock Performance & Return: Current market price of Paytm share is Rs 775.05 per share. Its 52-week high price is Rs 844.40 per share and 52-week low price is Rs 439.60 per share, respectively. Its market capitalisation is Rs 49,105.73 crore. Paytm share delivered 25% return in last 3-months, 52% return in last 6-months, and 25% return in last 1-year.

Motilal Oswal Recommends Buy For Paytm Share: The analyst has assigned buy call to Paytm stock, in its May 7 report, with target price of RS 900 apiece. If you buy Paytm stock now, you can fetch potential return of 16%. According to Motilal Oswal, "Paytm reported a healthy 4QFY23, with sustained momentum in GMV and robust growth in disbursements. This, coupled with a strong traction in subscription devices, led to healthy growth in overall revenues. We thus estimate Paytm to achieve EBITDA breakeven by FY25 and value Paytm based on 18x FY28E EV/EBITDA and discount the same to FY25E taking a discount rate of ~15%. We thus value the stock at INR900, which implies 4.5x FY25E P/Sales."

ICICI Securities Assigns Buy Call To Paytm Stock: ICICI Securities, in its May 8 report, recommended buy rating to Paytm stock with target price of Rs 1055 apiece. If you buy Paytm share at current market price of Rs 775 per share, you can get potential upside of 36%. According to the brokerage firm, "Maintain BUY with the revised target price of Rs1,055 (Rs1,295 earlier) (now based on DCF methodology)."

Paytm Q4 Results: Paytm parent One97 Communications managed to bring down losses in the March quarter. Its consolidated net loss narrowed to Rs 168 crore from Rs 761 crore a year ago, and Rs 392 crore a quarter ago. Meanwhile, the company's consolidated revenue from operations soared by approximately 52% YoY to Rs 2,335 crore.

Disclaimer: The stock has been picked from the brokerage report of ICICI Securities and Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage Houses are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.