Paytm stock gains after management's strong commentary on growth, profitability
Published On: Friday, December 2, 2022 | By: Team KnowMyStock
Shares of One97 Communications, the parent company of Paytm, on Friday, zoomed more than 7 percent to Rs 543.45 as Dalal Street turned optimistic after the management's strong commentary on growth and profitability.“Management stated that the journey to attain operating profitability (EBITDA before ESOP cost) via consistent margin improvement has exceeded its expectations in the past few quarters,” ICICI Securities, which attended the company’s analyst day meet, said in a note. Meanwhile, the company on Thursday (1 December 2022) informed that at present it makes a net payment margin of 7 to 9 bps of GMV on processing. Of which UPI gives us 3 to 4 bps and other instruments give 15 to 18 bps. "Since UPI is growing faster than other instruments, we expect the blended margin to stabilize at 5 to 7 bps," the company said.
Sharma said that the current phase is the early days of payments in India. UPI has about 25 crore signed-up customers and there is only a total of approximately 1 crore devices in the market.
We believe overall subscriptions for payment and other services will be a large market. India could have potential of 10 crore merchant entities and more than 50 crore payment customers in near term. Expanding merchants' business by offering coupons, deals, marketing and loyalty will create more revenue and profit for our commerce business," he said.
The company sees great opportunity in bank partnerships to sell their products, the Noida headquartered fintech said.
We are on Telegram!
JOIN our telegram channel to receive updates on Financial News and Stock and FNO Tips.
Click Here!
Follow Us On:
