20-22% upside likely in Paytm from current price: Hemang Jani

economictimes.indiatimes.com:

Hemang Jani, Independent Market Expert, says What the market would like about Paytm and Zomato is the fact that the operating prices are improving month on month. We have all the data points, the user and the way they have gone about, let us say in case of Zomato, the subsidiaries part, they have been able to kind of curtail the losses and the core offering is getting better, the user base is expanding. In the case of Paytm, if you see the loan products, the wealth product, growth is evident and it is a very profitable business. Once that happens in front of you, that gives you that confidence to participate in that.
Jefferies is pretty bullish on Paytm, saying that the growth momentum is only going to continue. What is your outlook on Paytm? Do you just ignore some of the ups and downs that they have had because the long-term prospects look strong or is it an avoid?
In Paytm, we have been having a positive view for a while and our take is that on a monthly basis the user base is expanding and more importantly the path to profitability is looking much better.

So, when you look at the loan products, the wealth in the financial services vertical, where we are seeing a good amount of traction and once that achieves a certain scale, the overall contribution to their profitability will grow big time. So, Paytm, despite the challenges of disruption from Jio Finance and maybe a few other companies, is a formidable player and there is a case for a 20-22% kind of an upside from current price point.

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