Goldman Sachs, Morgan Stanley, BofA bullish on Paytm

Paytm reported its third quarter FY2021 results recently, night, where it saw its revenues grow by 89% to Rs 1,456 crore. The company’s income from payment services to merchants jumped by 117% to Rs 585 crore, constituting 40% of total revenues in the quarter ending December 2021 compared to the same quarter of the previous year. EBITDA losses reduced to Rs 393 crore, excluding a one-time ESOP expense cost of Rs 390 crore recorded in Q3 FY 2022 from the grant of 26.6 mn Employee Stock Option (ESOPs).

Lending continues to be a big growth driver for the company with total loans at 4.4 million in Q3 FY2021, aggregating to a total loan value of Rs 2,177 crore. In the Merchant loans category, the company reported a growth in the total value of loans disbursed to Rs 471 crore, up by 127%, with an average ticket size of Rs 120,000-Rs 140,000. In the Personal Loans category, the company recorded a growth of 1,923% to Rs 515 crore, with an average ticket size of Rs 80,000-Rs 90,000. In the booming Buy Now, Pay Later Category, Paytm Postpaid saw its total value of loans go up by 408% to Rs 1,190 crore, with a presence at over 3.5 million online and offline merchants.

The top brokerages rating of the company:

Goldman Sachs
Stock Rating: Upgrade to Buy
Target Price: Rs 1460

Morgan Stanley
Stock Rating: Overweight
Target Price: Rs 1425

BofA
Stock Rating: Neutral
Price Objective: Rs 1130

Dolat Capital
Stock Rating: Buy
Target Price: Rs 2500

FacebookTwitterLinkedin