Paytm shares jump 3% as Q3 losses narrow, revenue rises
Paytm jumped over 3% to the day's high of Rs 798 on the NSE in Saturday's trading session after the company reported a jump in its December quarter revenue while narrowing its losses.
With today's gains, the stock has remained unbeaten in three sessions and gained over 8%.
The digital payments major narrowed its losses to Rs 220 crore for the quarter ended December 2023, compared to Rs 290 crore in the September quarter and Rs 392 crore in the year-ago quarter. Revenue from operations in the third quarter jumped 38% to Rs 2,850 crore as against Rs 2,062 crore in the corresponding quarter of the previous year.
Read more | Paytm Q3 Results: Losses narrow to Rs 220 crore; revenue jumps 38% YoY
Reacting to Paytm's quarterly show, analyst Sanjiv Bhasin said that he has been recommending the stock at levels of Rs 600, 620 and the stock has now surpassed Rs 780.
He said that it was time to buy this fintech counter.
«I think Paytm's EBITDA has come very-very strong and it should be a very-very good bellwether,» the IIFL Director said.
On Paytm still reporting losses, Bhasin said that it will take time for the company to turn to profits. In his view, the company will break even by at least the next two quarters.
«You are seeing that the volume change and the shift of business from the buy now, pay later has been also modified because of the RBI.
But they have done a very fast realisation and on top of that look at the transactions, look at the growth. So, I think they are back in the high-ticket teens which will now add on in the next two quarters,» Bhasin told ET Now.
Paytm stock has jumped over 40% in the past 12 months and its returns are higher than 20% returns given by Nifty during this period.
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