Paytm shares gain 3% on strong Q1 operating performance

Shares of Paytm (listed as One97 Communications) gained 3 per cent on Monday after the Vijay Shekhar Sharma-led firm reported a 492 per cent rise in number of loans disbursed through its platform in Q1 on a year-on-year (y-o-y basis). The number of loans rose to 8.5 million in the quarter ended June 2022, while the value of loans disbursed grew 779 per cent y-o-y to Rs 5,554 cr ($703 million).

Paytm stock rose 2.84 per cent to Rs 718.95 today against the previous close of Rs 699.10 on BSE. Shares of the digital payments firm are trading higher than the 5-day, 20-day, 50-day and 100-day moving averages but lower than 200-day moving averages.

However, the stock has lost 46.98 per cent in 2022 but risen 17.97 per cent in a month. Market cap of Paytm rose to Rs 46,118 crore on BSE.

Total 2.36 lakh shares of the firm changed hands amounting to a turnover of Rs 16.71 crore. The stock hit a 52-week high of Rs 1961.05 on November 18, 2021 and a 52-week low of Rs 511 on May 12, 2022.

Shares of Paytm have recovered 40 per cent from their 52-week low in two months.

However, the large cap stock is still down by Rs 1,236.05 or 63.22 per cent compared to its IPO listing price of Rs 1,955 on November 18, 2021.

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The firm said it clocked disbursements at an annualised run rate of Rs 24,000 crore ($3 billion) through its platform in June. Monthly transacting users of Paytm Super-App stood at the highest at 76 million.

The firm said consumer engagement cmae at its highest on Paytm Super-App with average monthly transacting users (MTU) at 74.8 million for the quarter ending June 2022, rising 49 per cent y-o-y.

The company also reported a 101% Y-o-Y increase in merchant payment volumes (GMV) for the quarter ended June 2022 at Rs 2.96 lakh crore ($37 billion).

Ravi Singhal, CEO at GCL said, "We see a robust growth of  Rs 5,500 crore loan distribution in the first quarter. If they are able to break free from RBI restrictions in the coming months, they can do even better. It will be range-bound, with a possible range of  Rs 570 to  Rs 880."

Ravi Singh, vice President and head of Research, Share India said, "Paytm share prices are trading higher amid improved lending business performance. The stock is showing strength on its daily and intraday charts, with a probability of strong uptrend in the near term. The momentum indicators are suggesting a good move ahead supported with robust volumes. Paytm stock may touch the levels of  Rs 750. However, a strong resistance around  Rs 760 levels can push back the rally."

Manoj Dalmia, founder and director, Proficient Equities said, "Paytm loan disbursements increased 471 per cent year on year in April-May to 5.5 million, or Rs 3,576 crore in the first two months of this quarter, representing an 829 per cent increase over last year. The stock has recovered more than 30 per cent after recently hitting a 52-week low of Rs 510.1. Investors can hold or add to their positions in the stock as it approaches a key price area from which it can begin its upward move with a target of Rs 800, a stop loss of Rs 677, and an entry at current levels."

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