Last Updated: March 22, 2024, 14:03 IST
There has been a decline in Paytm’s UPI transaction quantity in February, following the RBI motion.
Paytm lately obtained the National Payments Council of India (NPCI) approval to operate as a 3rd-social gathering app
Shares of One 97 Communications, the guardian firm of fintech platform Paytm, traded above Rs 410 on the National Stock Exchange (NSE) intraday on March 22, rebounding round 32 per cent from its 52-week low of Rs 318.35 hit in February, and sustaining its gradual restoration on this interval.
Paytm lately obtained the National Payments Council of India (NPCI) approval to operate as a 3rd-social gathering app, which is able to allow it to work like its friends Google Pay and PhonePe. The firm has additionally tied up with Axis Bank, HDFC Bank, SBI, and Yes Bank to make sure clean enterprise migration.
Although the fintech grapples with the influence of RBI motion on the Paytm Payments Bank (PPBL), Motilal Oswal sees a 30 per cent upside within the inventory.
“We anticipate a further decline in UPI transaction volume and value data in March 2024 as well. We review our numbers and estimate payment processing margin to decline as the mix of high-yielding wallet business declines sharply, while the impact on financial business (loan origination volumes) further suppresses revenue growth and profitability,” stated the home brokerage.
However, Paytm has lately obtained NPCI approval to operate as a 3rd-social gathering app supplier (TPAP), which is able to allow it to work like its friends, Google Pay and PhonePe. Paytm has tied up with Axis Bank, HDFC Bank, SBI, and YES Bank to make sure clean enterprise migration.
“We remain watchful on the ongoing business transition and Paytm’s ability to recover lost business and resume growth trajectory over FY25- 26E. We thus estimate FY25E revenue to decline by 24 per cent, while contribution profit declines 30 per cent. We estimate contribution margin to sustain at 51 per cent over FY25E,” MOSFL stated.
Motilal Oswal has revised its goal value to Rs 530 based mostly on 15 instances FY28E EV/Ebitda discounted to FY26. The brokerage agency will revisit its ranking publish fourth-quarter outcomes and within the interim preserve its ‘neutral’ stance on the inventory. The brokerage sees as much as 30 per cent upside within the from its earlier shut.
