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Paytm shares fall 6%, extend decline to 20% in five sessions

Earlier, UBS had released a report, citing NPCI data, mentioning that Paytm did not gain any UPI market share in December.

January 13, 2025 / 14:41 IST
Paytm shares extend fall on fourth day
     
     
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    Shares of One97 Communications, the parent company of fintech major Paytm, continued to fall for the fourth consecutive session on January 13. The shares fell as low as Rs 796.1 apiece, marking a decline of over 6 percent.

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    Earlier, UBS had released a report, citing NPCI data, mentioning that Paytm did not gain any UPI market share in December.

    In October, Paytm had received approval to add customers. Yet, its share of the UPI market nearly halved, declining from an opening of 10 percent in the beginning of 2024, to 5.5 percent by the end of the year. Within the October-November period, Paytm's market share remained stagnant at 5.5 percent. Paytm's monthly transacting users (MTUs) also declined by nearly 100 million, dropping from 168 million at the start of 2024 to 68 million by the end of September 2024.

    In a recent note, Mirae Asset Capital Markets projected that Paytm would achieve breakeven at the net profit level by Q4FY26, driven by a greater contribution from financial services to its revenue. For the upcoming quarter, analysts at Motilal Oswal forecast a 10 percent quarter-on-quarter (QoQ) increase in Paytm's gross merchandise value (GMV) to Rs 4.9 lakh crore in Q3FY25. They also expect an 8 percent QoQ rise in revenue from operations to Rs 1,800 crore, with a 14 percent QoQ increase in contribution profit to Rs 1,012 crore in Q3FY25.

    Out of a total of 17 brokerage firms, six recommend "buy," six issued "hold" ratings, and five are recommending "sell" on Paytm.

    Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    Moneycontrol News
    first published: Jan 13, 2025 01:49 pm

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