Owner of the Owner of Paytm One97 Communications Ltd. Volatile on Monday after many brokers remained mixed with the company’s December quarter income. Stock down as much as 5% in the opening before going up 3%.
At 10:20 a.m., the script was traded at Rs 969 in BSE, up 1.7% from the previous close. Stock reaches high and low respectively Rs 984 and RS 898.
The Macquarie research brokerage company in his note said that it remained “poorly performing” in stock and cutting the target price to Rs 700, down 22% of the current level.
Paytm reported the loss of Rs 780 Crore in this quarter because of the large cost of RS 390 Crore on ESOPS (employee shares options) given before the IPO. These costs will repeat annual fees of 1,600 crore. The brokerage company said that the increase in esop costs has not been taken into account in its previous estimate.
“We do not believe that investors need to see EBITDA EX ESOs. Because of the integral esops for startup and there is a dilution of minority shareholders when the ESOP is done, EBITDA includes the cost of the iceop to be seen. The problem with Paytm is that the ESOPS has been issued at a very nominal exercise price Supporting employees and costs are borne indirectly by minority shareholders here, “said Macquarie’s research. This increases the estimated FY22-26E loss of 39-101% to a factor in high cost of recurring ice.
Goldman Sachs brokerage company increases stock to buy and increase the target price to Rs 1,460, up 53% of the current pace. “
“We believe the strong growth of Paytm Topline from 89% YoY in 3QFY22 (11% before the GSE) will help Allah investors regarding the decline in payments taking levels in recent years. In addition, Paytm continues to get a market share in both payment interfaces (UPI)) And non-upi, and business loans are seeing strong traction (+ 201% yoy income growth in 3Q), “said Goldman Sachs. This has increased the estimated topline of 7-10% and expects growth momentum to maintain. Brokerage companies expect 89% YOY’s revenue growth in the fourth quarter of FY22, with 35% FY22E-25E annual growth rate.
“We hope that the increase in paytm scale to produce increased margin trends, with companies that reach EBITDA are tailored to FY25E. We also noted that Paytm had a strong balance sheet ($ 1.4 billion in cash in December 2021), and saw the limited possibility of the company Need to increase more capital (annual cash payment of $ 210 million), “Goldman Sachs added.
The loan distribution business is still subscale for Paytm, with companies that distribute only 39,000 merchant loans and 60,000 personal loans in the quarter. Ninety eight percent of loans based on volume are BNPL (buy now pay later) where the ticket size is less than Rs 3,000. Analyst remains skeptical of this vertical scalability in a pure distribution model.
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