The decline in the stock’s price comes after Paytm took a hit to its topline in Q1 FY25, with its net loss ballooning to INR 840.1 Cr, up 134% year-on-year
Emckay Global has retained its “reduce” rating on the stock, citing prolonged business losses, while also hiking the target price to INR 375 from INR 300 earlier
Further, JM Financial has maintained its “sell” rating on the stock while hiking the target price to INR 390 from INR 300 earlier
Shares of Paytm
slipped more than 3% during intraday trading at INR 444.30 apiece on Monday on the BSE after the fintech major took a hit to its topline in Q1 FY25, with its net loss ballooning to INR 840.1 Cr, up 134% year-on-year.
Revenue from operations also declined 36% to INR 1,502 Cr during the quarter under review from INR 2,342 Cr in Q1 FY24.
While Paytm, in its earnings release, exuded confidence that its profitability and revenue will improve going forward, Mumbai-based brokerage Emckay Global has retained its “reduce” rating on the stock, citing prolonged business losses, while also hiking the target price to INR 375 from INR 300 earlier.
Further, JM Financial has maintained its “sell” rating on the stock while hiking the target price to INR 390 from INR 300 earlier.
“Although Paytm has found alternatives for Paytm Payments Bank Limited, we believe on-boarding of new customers and revival of high margin products in payments business is contingent on regulatory approvals, seamless migration of accounts and smooth integration. Only regaining MTU (down from 104 Mn in Jan 2024 to 78 mn in June 2024) will support declining revenue and profitability,which will take time in our view,” the brokerage said in a note.
(The story will be updated soon)
