BENGALURU: Shares of Paytm parent company One97 Communications hit a record low on Monday after brokerage firm Macquarie gave an ‘underperform’ rating and set the target price of the company at Rs 900 from Rs 1,200 earlier.
The stock fell over 6% to a record low of Rs 1,151 apiece on BSE and closed at Rs 1,157.90. “We believe our revenue projections, particularly on the distribution side, is at risk,” Macquarie said in a note. It also noted that senior executives have been resigning from the company, which is a cause of concern.
Recently, Renu Satti, Chief Operating Officer, Offline Payments, and Abhishek Arun, Chief Operating Officer, Paytm Payments Bank, have quit the company. Following this, the company elevated Bhavesh Gupta, CEO, Paytm Lending, to take on the leadership for the offline payments vertical.
The brokerage firm also said that the RBI’s proposal to cap charges on digital payments could impact the company’s revenue significantly. In November 2021, after its listings, the company reported that its net loss widened 11% at Rs 482 crore in the second quarter ended September 30, 2021.
Meanwhile, One97 Communications said in its filings on Monday that its lending business scaled rapidly. The number of loans disbursed through the company’s platform increased by 401 % y-o-y to 4.4 million loans in Q3 FY22. It disbursed loans amounting to Rs 2,180 crore, an increase of 365% Y-o-Y.
“We have seen stellar growth in each of the lending products, i.e. Paytm Postpaid (buy-now-pay-later), personal loans and merchant loans,” the company said. It said the gross merchandise volume (GMV) in Q3FY22 grew 123% to Rs 2,50,100 crore. It said the year-to-date GMV is already higher than all of FY21, led by significant non-UPI GMV growth.
Nifty reclaims 18,000-mark after two months
New Delhi: The benchmark Nifty index reclaimed the 18,000 level after almost two months as equity markets started the week on a strong note in expectation that India Inc would post good third quarter results. On Monday, the Nifty closed at 18,003, up 191 points, or 1.07%, from its previous close, while another benchmark index Sensex rose 651 points to close at 60,395. The positive sentiments were shared by the broader market as The Bank Nifty closed 1.6% at 38,348, Nifty Midcap 100 and Nifty Smallcap 100 closed 0.9% and 1.3% higher respectively. Auto, banking and IT sector stocks were the top gainers of the day. UPL Ltd was the top gainer among Nifty 50 stocks with 4.57% gain followed by Hero Moto (3.38%), Titan (3.14%) and SBI (2.75%).
