Paytm parent One 97 Communications' shares surged almost eight percent on Monday. In the last one month, the new age fintech stock has gained over 10.5 percent, better than the BSE Sensex's return of 9.4 percent.
Analysts have mixed views on the stock.
Goldman Sachs has a target price of Rs 1,070 on Paytm, suggesting a 58.6 percent upside from Friday's closing price.
The brokerage said the company's January-March quarter results "exhibited another quarter of strong and improving monetisation of the payments vertical". It also said that Paytm's "cash burn (situation) has been improving".
Goldman expects Paytm's revenue to grow by 90 percent year-on-year (YoY) in the April-June quarter with a 38 percent FY22-25E revenue compound annual growth rate (CAGR).
On the other hand, CLSA recently initiated coverage on Paytm with a 'sell' rating and a target of Rs 550 apiece, indicating a downside of 24 percent from Monday's high.
The brokerage said the fintech's core payment revenue potential falls short of its high fixed-cost structure.
Domestic brokerage Dolat Capital Market has a ‘buy’ call on Paytm shares and with a target price of Rs 1,400.
Paytm is set to announce its April-June quarter results on Friday, August 5.
Paytm disbursed Rs 84.75 lakh in loans (in partnership with top lenders) in the quarter, registering nearly 30 percent quarter-on-quarter (QoQ) growth or 492 percent YoY, according to a business update. The aggregate total loan value of the company is now Rs 5,554 crore for the June quarter, growth of 779 percent on a year-on-year basis.
At 1:05 pm, Paytm shares were up eight percent at Rs 727.85 on BSE, having risen to as high as Rs 731.7 earlier in the day.
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