Shares of Paytm's parent company, One 97 Communications, rose on Nov. 25 on a buying from lows as demand for the meter increased following positive comments from analysts.
After hitting his all-time low of Rs 439.6 in the previous session, his shares at BSE rose nearly 7 percent to Rs 470 on Friday. Many believe that the selling at Paytm is overdone and that the stock that is trending down is worth buying at this level. Most brokers are bullish, with some seeing him with over 100% upside potential over the next 12 months.
According to data available at Bloomberg, of his 12 analysts covering this stock, 6 have a 'buy' rating and 3 have 'hold' and 'sell' ratings respectively. have a rating. The consensus 12-month target price is Rs 872.
“We are aware of excessive risks from further pre-IPO divestments by existing shareholders, and while Fintech is a highly competitive environment, these risks are exaggerated in these assessments.” , from January to June 2022, MDR Generated Total Payments (TVP) based growth looks to match PayU's 59% YOY growth while Paytm's 52% YOY growth.
In the post-purchase payment (BNPL) segment, Paytm also sees faster growth in its active customer base compared to PayU's Lazypay. Lazypay's reported loss rate has risen year-to-date (YTD) for him to 3.1% (30 basis points vs CY21), something to watch out for in his broader BNPL space in India , says Jain.
However, some analysts are counting the risks that could push the stock price down. They have also lowered their price targets. One of them is his Macqarie's Suresh Ganapathy, which is rated underperforming with a target of Rs 450.