Paytm share price at near 6-month high post Q1 results. To buy, sell or hold?

Two days after Paytm announced a rise in its revenue as it declared its first quarter results for FY23, the company’s share price on Monday surged to its highest levels in six months, as the stock rallied by more than 6% to ₹830 apiece on the Bombay Stock Exchange (BSE), Livemint reported.Also Read: Paytm’s quarterly loss widens almost 70% on costsHowever, on Paytm shares’ future course of action, brokerage firms CLSA and JM Financial gave a ‘sell’ tag, while Dolat Capital saw a ‘big upside’ in the counter, the report added.Here’s what each firm said:CLSA: A CLSA report projected that Paytm shares may slide to ₹650 apiece from its current highs. Meanwhile, it increased the firm’s estimated target price of each Paytm share from ₹500 to ₹650. JM Financial: A financial report of the firm said that for sustainable profitability, scaling up financial services would be the key driver, adding that, however, this was also where it could see risks to the current take rates.“We would use recent upside move in the stock price (+27% in last 2 months) as an opportunity to trim,” said JM Financial.Dolat Capital: In a report, Dolat Capital said that in the long term, the stock may rise up to ₹1,400 per share levels. “Strong Q1 with robust growth as well as cost optimization clearly indicates Paytm’s ability and intent to achieve Cash-EBIDTA Breakeven by H1FY24, thus making a strong case for re-rating, as the financials play out on guided path,” the firm said.

ABOUT THE AUTHOR

Follow the latest breaking news and developments from India and around the world with Hindustan Times’ newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we’ve got you covered.
…view detail