Paytm shares slip 3% after SoftBank sells more stake; tech charts & other details
Paytm share price: The counter's 14-day relative strength index (RSI) came at 57.40. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-earnings (P/E) ratio of 29.46 against a price-to-book (P/B) value of 4.45.
- Jul 18, 2023,
- Updated Jul 18, 2023 1:34 PM IST
Shares of One 97 Communications Ltd, Paytm's parent, fell in Tuesday's trade after SoftBank further reduced its stake in the digital payments firm. SVF India Holdings (Cayman), a SoftBank entity, sold 2.01 per cent stake in Paytm, news agency Reuters reported citing exchange filing. With this, SVF India's stake in Paytm has been reduced to 9.15 per cent. Earlier in May, the Japanese investment firm offloaded a 2 per cent stake in Paytm.
The stock today slipped 2.56 per cent to hit a day low of Rs 840.50. That said, it has rallied nearly 60 per cent in 2023 so far amid hopes of constant improvement in contribution margin and operating leverage, which may drive operating profitability.
On technical setup, the counter's 14-day relative strength index (RSI) came at 57.40. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-earnings (P/E) ratio of 29.46 against a price-to-book (P/B) value of 4.45. The scrip has a one-year beta of 0.76, indicating low volatility.
On BSE, around 36,000 shares changed hands today, which was lower than the two-week average volume of 1.67 lakh shares. Turnover on the counter stood at Rs 3.06 crore, commanding a market capitalisation (m-cap) of Rs 53,624.17 crore.
Brokerage views:
Morgan Stanley said it expects an overall revenue growth (adjusted for UPI incentive) of 42 per cent for Paytm on year-on-year (YoY) basis.
Motilal Oswal has suggested a target price of Rs 1,050. "We believe that after reporting adjusted Ebitda breakeven in Q3FY23, almost a year ahead of its guidance, Paytm is on track to report Ebitda breakeven in H2FY25. We raise our FY25E GMV and disbursement estimates by 5 per cent and 21 per cent, respectively, and estimate the mix of financial revenue to increase to 32 per cent by FY25 from 19 per cent in FY23," the brokerage said.
Dolat Capital has given a target of Rs 1,250 for Paytm. ICICI Securities sees the stock at Rs 1,055, while Axis Capital maintains its 'Buy' rating with a target price of Rs 1,000.
Axis Capital said a healthy revenue growth and improvement in cash flow is likely to lead to a higher adjusted Ebitda. This brokerage pegged Paytm's adjusted Ebitda at Rs 60 crore in Q1 FY24 against Rs 52 crore in the March quarter.
Meanwhile, Indian equity benchmarks touched their fresh lifetime highs today.
Also read: Adani Enterprises shares rally 4% post AGM. Here's why
Shares of One 97 Communications Ltd, Paytm's parent, fell in Tuesday's trade after SoftBank further reduced its stake in the digital payments firm. SVF India Holdings (Cayman), a SoftBank entity, sold 2.01 per cent stake in Paytm, news agency Reuters reported citing exchange filing. With this, SVF India's stake in Paytm has been reduced to 9.15 per cent. Earlier in May, the Japanese investment firm offloaded a 2 per cent stake in Paytm.
The stock today slipped 2.56 per cent to hit a day low of Rs 840.50. That said, it has rallied nearly 60 per cent in 2023 so far amid hopes of constant improvement in contribution margin and operating leverage, which may drive operating profitability.
On technical setup, the counter's 14-day relative strength index (RSI) came at 57.40. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-earnings (P/E) ratio of 29.46 against a price-to-book (P/B) value of 4.45. The scrip has a one-year beta of 0.76, indicating low volatility.
On BSE, around 36,000 shares changed hands today, which was lower than the two-week average volume of 1.67 lakh shares. Turnover on the counter stood at Rs 3.06 crore, commanding a market capitalisation (m-cap) of Rs 53,624.17 crore.
Brokerage views:
Morgan Stanley said it expects an overall revenue growth (adjusted for UPI incentive) of 42 per cent for Paytm on year-on-year (YoY) basis.
Motilal Oswal has suggested a target price of Rs 1,050. "We believe that after reporting adjusted Ebitda breakeven in Q3FY23, almost a year ahead of its guidance, Paytm is on track to report Ebitda breakeven in H2FY25. We raise our FY25E GMV and disbursement estimates by 5 per cent and 21 per cent, respectively, and estimate the mix of financial revenue to increase to 32 per cent by FY25 from 19 per cent in FY23," the brokerage said.
Dolat Capital has given a target of Rs 1,250 for Paytm. ICICI Securities sees the stock at Rs 1,055, while Axis Capital maintains its 'Buy' rating with a target price of Rs 1,000.
Axis Capital said a healthy revenue growth and improvement in cash flow is likely to lead to a higher adjusted Ebitda. This brokerage pegged Paytm's adjusted Ebitda at Rs 60 crore in Q1 FY24 against Rs 52 crore in the March quarter.
Meanwhile, Indian equity benchmarks touched their fresh lifetime highs today.
Also read: Adani Enterprises shares rally 4% post AGM. Here's why