Neutral One 97 Communications; target of Rs 1275: Motilal Oswal

Neutral

Motilal Oswal's research report on One 97 Communications

One 97 Communications (PAYTM) reported in-line operational performance, with net profit of INR2.2b (in line with our estimate of INR2.3b). Revenue grew 20% YoY/6% QoQ to INR21.94b (in line), led by healthy payments GMV, an increase in merchant subscriptions, and growth in the distribution of financial services. Payment revenue increased 19% YoY and 4% QoQ to INR11.9b, driven by steady GMV growth (up 23% YoY and 9% QoQ). The company also gained mkt share in Consumer UPI to 6.2%, alongside continued device deployments.

Outlook

We value PAYTM at INR1,275, based on 22x FY30E EBITDA discounted to FY27E, translating into 8.0x FY27E sales. We reiterate our Neutral rating on the stock.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

One 97 Communications_01022026_Motilal Oswal