Paytm Shares Gain The Most In Nearly Two Weeks On Growing Users, Merchant Payment Volume
The company's average monthly transacting users rose 6% sequentially to 8.5 crore in the December quarter.
Shares of One97 Communications Ltd. gained the most in nearly two weeks after the company, in its December business update, reported a rise in monthly transacting users and merchant payment volumes.
The average monthly transacting users rose to 8.5 crore, up nearly 6% QoQ in the December quarter, according to its exchange filing. The Vijay Shekhar Sharma-led company's merchant payment volumes rose 8% sequentially to Rs 3.46 lakh crore for the quarter.
The company's loan distribution business scales rose nearly 27% sequentially as 105 lakh loans worth Rs 9,958 crore were disbursed in the December quarter, the company said.
The company also added 10 lakh subscription payment devices in the quarter, taking the total to 58 lakh. "With a focus on creating additional payment monetization beyond MDR, our focus on subscription services continues to expand," the company said.
Shares of the company gained 4.2% to Rs 574.5 apiece, but still remained around 75% down from its IPO price of Rs 2,150. The stock closed 2.3% higher on Monday.
With today, shares of the company have risen for the seventh session in a row, their longest winning streak since the company went public on Nov. 18, 2021.
Paytm has gained nearly 7% in during the streak while the S&P BSE Sensex fell 1%.
Of the 12 analysts tracking the company, eight maintain 'buy', three suggest 'hold,' and one recommends 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 55.7%.