​Goldman Sachs upgrades Paytm with a goal worth of Rs 1,460


Mumbai: Goldman Sachs has upgraded Paytm‘s father or mother firm One97 Communications to purchase from impartial after its December quarter end result, citing sturdy development outlook and enticing danger reward.

The brokerage has a goal worth of Rs 1,460 on the inventory, revised from Rs 1,600 earlier.

Goldman Sachs stated Paytm’s share worth is down 30% to date this 12 months and the danger reward is now inclined extra in direction of the upside.

The brokerage’s bull case state of affairs case suggests an upside of 119% and the bear case assumption implies a 14% draw back within the inventory.

In line with Goldman Sachs, the present share worth is factoring in a number of bearish components akin to service provider low cost charge (MDR) caps, a decline in market share and a slower ramp-up of monetary companies enterprise which is unlikely.

“We consider Paytm’s sturdy topline development of 89% YoY in 3QFY22 (December quarter) will assist allay investor considerations round declining funds take charge lately. As well as, Paytm continues to realize market share throughout each UPI (unified funds interface) and non-UPI, and its lending enterprise is seeing sturdy traction,” stated Goldman Sachs, elevating topline estimates for Paytm by 7-10%.

Goldman Sachs expects Paytm to succeed in adjusted EBITDA (earnings earlier than curiosity, taxes, depreciation and amortisation) breakeven by monetary 12 months 2024-25.

There’s a restricted likelihood of the corporate needing to boost capital once more because it has a robust stability sheet, stated Goldman Sachs.

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