Paytm Shares Hits 20% Upper Circuit, Revenue Raises 42%
Paytm consolidated net loss reduced nearly ₹386 crore compared to last year. Simultaneously the revenue rose 42% to ₹2,062.2 compared to last year.
On Tuesday, the share price of One 97 Communications, often known as Paytm, continued to rise. The stock hit a 20% upper circuit in early sessions.
Whereas the stock has soared by more than 27% in just two days. Following good Q3 results, major brokerages around the world have increased their target price for Paytm shares. Paytm’s stock is expected to rise by a triple-digit percentage in the future.
Currently, Paytm shares are trading at 612.75 per share on the BSE, up 9.81% or 54.75 at the time of writing. It has a market value of about Rs. 39,787.96 crores.
Paytm shares touched its 20% upper circuit of $669.60 per share earlier today in early session.
After the third quarter, Paytm shares have had a strong start to the week. On Dalal Street, the share price ended the day on Monday at 558 rupees per piece, up 6.31%.
The provider of digital financial services had a dramatic reduction in its consolidated net loss, which fell from 778.4 crores in the same quarter last year to 392 crores in the December 2022 quarter.
Revenue increased 42% to 2,062.2 crores in Q3FY23 from 1,456.1 crores in Q3FY22 as a result of higher consumer adoption, subscription services provided by merchant partners, and ongoing expansion in the loan distribution and commerce sectors.
Also Read: What made Paytm IPO lead to first day fail?
Paytm’s founder and CEO, Vijay Shekhar Sharma, said that the business met its goal for operational profit during the December quarter, excluding ESOP costs.
Fintech exceeded its projected timeline of September 2023 by a large amount, reaching operating profitability with EBITDA before ESOP cost of 31 Crore.
Following the release of the Q3FY23 earnings, brokerages including Citi, CLSA, and Goldman Sachs have advised investors to purchase Paytm shares, while BofA has kept the firm’s rating at “neutral.”
