Paytm Share Price: One 97 Communication shares, the parent company of digital payments firm Paytm, soared 4.2% on Monday on the back of positive Q3FY23 numbers. Paytm reported sustained growth in payments and their loan distribution business. Paytm shares touched an intraday high of Rs 574. Currently, Paytm stock is trading around Rs 564 on the BSE, down 71% from its listing price of Rs 1,950 apiece, and down 71.2% from its all-time high of Rs 1,961.05, which it touched on the listing day.
Paytm registered a 357% on-year growth in its lending segment in Q3FY23, disbursing a total of Rs 9,958 crore in loans. It clocked a 330% on-year growth for loan disbursements in the month of December, at Rs Rs 3,665 crore. “Our loan distribution business (in partnership with top lenders) continues to witness an accelerated growth with disbursements through our platform. The number of loans grew 117% y-o-y to 3.7 million for the month of December, and 137% y-o-y to 10.5 million cumulative loans for the three months ended December 2022,” said Paytm’s report.
“Shares price of One 97 communication has rallied over 8% in January ahead of the expectations of rise in revenues and expectations EBITDA loss declining. Company has reported a loss of Rs. 588.5 crore in third quarter of the current financial year. With rising GMV and financing activity as well as some growth in business a positive QoQ operational revenue growth is anticipated. Growth in insurance premium as well as in loan disbursals is anticipated. Shares price breached the upper edge of the symmetrical triangle. Hence short-term trend might have changed to bullish and next crucial resistance level of Rs 625. Buy on dips is recommended Rs. 625 in the near term,” said Akhilesh Jat, Category Manager – Equity Research, CapitalVia.
The Paytm Super App’s consumer engagement touched an all time high, with 85 million average monthly transacting users in quarter ended December 2022, rising 32% on-year. Paytm also continues to focus on offline payments and its subscription services model, stating, “We continue to strengthen our leadership in offline payments, with 5.8 million merchants now paying subscription for payment devices. With our subscription as a service model, the strong adoption of devices drives higher payment volumes and subscription revenues, while increasing the funnel for our merchant loan distribution.”
The digital payments solutions company reported an annual growth of 38% in total GMV processed. “Our focus over the past few quarters continues to be on payment volumes that generate profitability for us, either through net payments margin or from direct upsell potential,” said the company.
Paytm shares have seen a consistent increase in price since the financial services and digital payments company launched a share buyback in December at a premium of 50%, worth Rs 850 crore at Rs 810 per equity share. The share buyback takes place in the open market through the stock exchanges’ order-matching mechanism. Based on the minimum and maximum buyback price, the indicative maximum number of shares bought back by the company would be 10,493,827.