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Business News/ Markets / Stock Markets/  Paytm share price surges 22% in YTD. Should you buy before Q4 results?

Paytm share price surges 22% in YTD. Should you buy before Q4 results?

Paytm share price may become bullish after breaking its hurdle placed at ₹700 per share levels, say experts

Paytm share price may go up to  ₹865 apiece levels in long term, say stock market experts.Premium
Paytm share price may go up to 865 apiece levels in long term, say stock market experts.

Paytm share price has been in uptrend after hitting life-time low of 438.35 apiece on NSE in November 2022. The One97 Communications share price has ascended from is life-time low to 650.55 per share levels in last six months, logging near 50 per cent rise in last five months. In fact, in year-to-date (YTD) time, Paytm shares have risen to the tune of 22 per cent, which has attracted attention of various stock market experts.

According to stock market experts, Paytm is expected to deliver healthy sequential growth in revenue as the fintech company is expected to give improved loan disbursal and new device addition addition in Q4FY23. They said that Paytm share price is currently in 600 to 700 band and once it breaks this 700 barrier, Paytm share price may surge up to 780 in short term. They advised positional investors to maintain 'buy on dips' strategy in regard to Paytm shares.

Paytm share price outlook

On Paytm share price outlook, Anuj Gupta, Vice President — Research at IIFL Securities said, "Paytm shares are sideways to positive on chart pattern and it is currently in 600 to 700 zone. Those who have this stock in portfolio are advised to maintain stop loss below 600 and hold the stock for higher range breach. On breakage of upper hurdle, Paytm share price may soon go up to 780 apiece levels in near term."

Expecting healthy Q4 results from Paytm, Yes Securities report said that Paytm is expected to report healthy Q4 results in sequential basis as the fintech firm is expected to report improved numbers on loan disbursal and new device addition front.

Giving buy tag to Paytm shares, Motilal Oswal said, "Paytm has achieved a breakeven in adjusted EBITDA during 3QFY23, well ahead of its guidance. We believe that a constant improvement in contribution margin and operating leverage will continue to drive its operating profitability. We thus estimate Paytm to achieve EBITDA break-even by FY25 with an EBITDA margin of 3.2%. We further estimate its revenue/contribution profit to grow at 26%/32% CAGR over FY23-28," adding, "We thus value Paytm based on 18x FY28E EV/EBITDA and discount the same to FY25E taking a discount rate of ~15% thus valuing the stock at INR865, which implies 4.5x FY25E P/Sales. We initiate coverage on the stock with a BUY rating."

As per the latest exchange filing, Paytm has informed about its Q4 earning conference call citing, "We wish to inform you that the Company will hold its earnings conference call for shareholders, investors and analysts on Saturday, May 6, 2023 from 11:00 A.M. (IST) to 12:00 P.M. (IST), to discuss the financial results of the Company for the quarter and year ended March 31, 2023."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Updated: 02 May 2023, 05:21 AM IST
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