Paytm Share Price: There is good news for investors investing in Paytm shares. The share of Paytm’s parent company One 97 Communications Limited(NSE: PAYTM) may increase 3 times to reach Rs 1444.
A top brokerage firm has released a research note on Paytm, stating that according to its base case estimates, the stock may double to Rs 1,170 in the next 24 months.
The brokerage in India has set a price target of Rs. 1,444 for each share. This indicates a jump of almost three times the stock’s current price.
Today, Paytm shares opened at Rs 559 and reached Rs 564.80 in no time. Around 9.30 am, the stock was trading at around Rs 550 with a gain of more than 2 percent.
Its 52-week high is Rs 998.30 and low is Rs 310. Even with his bear case estimates, the brokerage sees the stock as worth Rs 870. That is, even in a bad scenario, it will give a profit of about Rs 320 per share.
Why Is The Firm So Bullish?
According to a report, a brokerage has claimed that, with a focus on expanding its payment service and expanding into finance, Paytm is well-positioned to benefit from the expanding electronic economy.
Despite RBI’s crackdown on Paytm Payment Bank, a subsidiary of One 97 Communications Ltd, the brokerage called Paytm’s business model strong and technology gold standard.
The brokerage said Paytm’s pan-India merchant base of 40.7 million and 78 million monthly transacting users present a strong ecosystem for recurring revenue streams.
With UPI becoming the most popular digital payment method, and Paytm’s Soundbox becoming a vital toolkit for payment transactions, Paytm is well-positioned to profit from the associated tailwinds.
Base Case Estimates
For the period of FY24-27 Ventura anticipates that Paytm’s revenue will increase at a CAGR of 14.1 percent to 14,531 crore.
Contribution profits are expected to increase 15.6 percent to 8,301 crore, and pre-ESOP EBITDA to increase by 54.5 percent to 1,829 crore.
Additionally, Post-ESOP EBITDA and net earnings are expected to generate profit. It is expected to make net profits of Rs 1,379 crore and the equivalent of Rs 1,388 crore for FY27, and it will lose 908 crore and 1,417 crore for FY24.
Paytm wallet, Fastag, BNPL, and room rent payments that were suspended are expected to resume once the RBI clampdown clouds clear, Brokerage said.
Quick Fact
Company name | Paytm
| Paytm | Information |
|---|---|
| Future Target Price | ₹1444 |
| Target 1 | ₹1170 in 24 months |
| Target 2 | ₹870 |
| Current Opening Price | ₹559 |
| Current Intraday High | ₹564.80 |
| Expected Revenue Growth | 14% CAGR (FY24-27) |
| Expected Revenue | ₹14531 crore (FY27) |
| Expected Contribution Profit | ₹8301 crore (FY27) |
| Expected Pre-ESOP EBITDA | ₹1829 crore (FY27) |
| Expected Post-ESOP EBITDA | Profit expected in FY27 |
| Expected Net Earnings | ₹1379 crore (FY27) |
| Major Drivers | Expansion in payment services, finance |
| Strong Points | Large merchant base (40.7 million), users (78 million) |
| Key Digital Tools | UPI, Soundbox |
| Expected Revival | Paytm wallet, Fastag, BNPL, room rent payments |
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