New Delhi: Paytm shares on Monday recovered from opening loss as the stock was up over 2 percent at Rs 972 apiece on the Bombay Stock Exchange (BSE) in Monday's early deals.
In last year December, the company had posted a consolidated loss to Rs 778.5 crore in the year-ago quarter compared to Rs 535.5 crore in the year-ago quarter.
The company's consolidated revenue from operations jumped by 88 percent to Rs 1,456 crore during the reported quarter from Rs 772 crore it posted in the same quarter last year.
According to Goldman Sachs analysts, Paytm can help allay investor concerns around declining payments take rate in recent years. Beside this, Paytm continues to gain market share across both UPI and Noon. UPI and its lending business are seeing robust action.
"Our analysis suggests the current share price is implying multiple headwinds including MDR caps, a decline in market share for Paytm, and significantly slower ramp-up of Paytm's financial services, which we view as unlikely. With our revised target price of Rs 1,460, we upgrade the stock to Buy from Neutral," Livemint quoted Goldman Sachs as saying.
Interestingly, the Gross Merchandise value (GMV) grew 123 percent year-on-year at Rs 2.5 lakh crore during the third quarter. The payment services of Paytm to consumers grew by 60 percent to Rs 406 crore from Rs 254 crore and payments services to merchants more than doubled.
Goldman Sachs further said that Paytm will remain well-positioned to capture share of digital payments in India.
Notably, the company made its debut on stock market in last year in November and since then it has witnessed a huge plunge in its price which have nearly gone half of its issue price.
Also watch: