Paytm narrows Q1 loss to Rs 358 crore; shares give up initial gains

Paytm share price NSE, Paytm share price target, Paytm Q1 results: Shares of One97 Communications, the parent of digital payments company Paytm, erased early morning gains, slipping nearly 6 per cent on Monday after the company registered a net loss of Rs 358.4 crore for the June quarter as against a net loss of Rs 645.4 crore for the corresponding period a year ago. After market hours on Friday, the company reported revenue of Rs 2,341.6 crore for the three-month period, marking growth of 39.4 per cent compared with the year-ago quarter.

Paytm shares slipped by as much as nealy 6 per cent to touch the day's low of Rs 796 apiece from Friday's close of Rs 844.3 on NSE. The stock settled at Rs 808 apiece, down by 4.3 per cent on NSE.

According to a regulatory filing, the company's merchant payments volume (GMV) rose 37 per cent on a year-on-year basis to Rs 4.05 lakh crore for the June quarter. "Paytm's EBITDA before ESOP margin stood at 4 per cent on the account of consistent improvement in profitability due to strong revenue growth, increasing contribution margin and operating leverage," the company said. Read more on Paytm Q1 results

Paytm shares: Should you buy, sell or hold?

A number of brokerages raised their target prices for Paytm after the company's earnings announcement:

• CLSA maintained a 'buy' call on Paytm and raised its target price for the stock to Rs 1,050 from Rs 850
• Goldman Sachs maintained a 'buy' and raised its target price to Rs 1,200 from 1,150
• Citi continued with a 'buy' rating and raised its target price to Rs 1,200 from Rs 1,160
• JPMorgan maintained an 'overweight' rating with a target price of Rs 950
• Macquarie retained a 'neutral' rating with a target price of Rs 800

Paytm shares: Historical performance

Paytm shares have grown more than 60 per cent in value so far in 2023, sharply outperforming an 8.5 per cent rise in the benchmark Nifty index.

Catch latest minute-by-minute stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.