Macquarie Research has reiterated its “Underperform” rating on Paytm (One 97 Communications), citing a target price of ₹730, reflecting a significant downside from the current market price of ₹894.00.
Key Highlights:
- Earnings Beat:
- Paytm reported a strong beat on all fronts in Q3, with better-than-expected performance driven by higher revenue and reduced ESOP costs.
- Loss Reduction:
- Losses declined more than anticipated, indicating effective cost controls and operational improvements.
- GMV and Revenue Growth:
- Gross Merchandise Value (GMV) increased robustly.
- Operating leverage continues to improve, with distribution revenue at risk of upside due to higher take rates.
Current Market Scenario:
At ₹894.00, Paytm’s stock trades well above Macquarie’s target price, suggesting potential downside risks despite improved quarterly results.
Outlook: While operational metrics show improvement, Macquarie remains cautious about Paytm’s valuation and long-term sustainability, maintaining a bearish stance.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor before making investment decisions.
