One 97 Communications, Paytm’s parent company, witnessed increased buying activity in the last day of trading due to it was announced that the National Stock Exchange (NSE) expanded the circuit filter on the company’s shares from 5% to 10 percent. The shares opened at Rs349 in the NSE and climbed to the intraday peak of Rs381.30 which triggered the 10% higher circuit cap.
Paytm’s Q4 Results and Analyst Optimism
The Paytm Q4 results have been impacted by temporary circumstances worldwide brokers Bernstein as well as Morgan Stanley see encouraging signs of a recovery in the most important business indicators.
- Paytm’s Gross Margin (GMV): Bernstein releases GMV during April was 81% of the January level that suggests a positive outlook as well as a return to the lows of recent. Morgan Stanley highlights a moderation of quarter-on-quarter GMV growth but it’s increasing by 30% year-over-year, as compared to 47 percentage.
- Consumer Payments and GMV: Excluding discontinued products, consumer GMV has increased to about 85 percent of January’s values and merchant GMV was 94 percent. Together, GMV is currently at 93% of January’s values which is a significant increase.
- Lending Volumes The volume of lending is picking up, with merchant loans rising up to 86% of the January’s levels following a full closing in February. The recovery of consumer lending is slow however, and is showing progress and the volume is at 75% of the January level.
- Registered Merchant Base Morgan Stanley reports Paytm’s active merchant base has continued to grow, adding 1.3 million added to the base during the fourth quarter of 2024.
Paytm Share Price Target
Analysts have that Paytm has a good outlook on its value. Ganesh Dongre suggests:
- Current Shareholders: Hold the stock using a trailing stop loss in the range of Rs350, with a shorter-term goal of Rs410. If the price is surpassed and the price could rise to at least Rs450 within the next two months.
- New investors: Buy at the present value (CMP) and follow an investment strategy of buy-on-dips until the stock is above the price of the price of Rs350. The goal is Rs410 to the price of Rs450 with an initial stop loss of the amount of Rs350.
Disclaimer: This content is meant to be used for informational purposes only. It shouldn’t be considered to be an investment recommendation. Consult a certified financial advisor prior to making any investment choices.