Paytm - Get Set PAY: Motilal Oswal Initiates Coverage

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.One 97 Communications Ltd. is India’s leading payments app and fintech enterprise offering payments, financial services, commerce, and cloud services to its large consumer/merchant base of ~350 million/ ~31.4 million, respectively as on Q3 FY23. It is among the largest payments platform, with gross merchandise value of ~Rs 13.2 trillion in FY23 (Rs 8.5 trillion in FY22). Paytm has grown its monthly transacting users to 90 million as of FY23 that provides a ready customer base to cross-sell financial products to consumers; while, robust growth in subscription devices has helped improve throughput and supported growth in merchant loans. During FY23, Paytm reported a 4.6 times jump in the value of loans disbursed to reach an annualised run-rate of Rs 500 billion. We estimate disbursements to report a steady 64% compound annual growth rate over FY23-25, thus driving the mix of financial revenue upwards to 31%. Paytm has achieved a breakeven in adjusted Ebitda during Q3 FY23, well ahead of its guidance. We estimate contribution margin to improve to 56.8% by FY25 from 30% in FY22, fueled by improvement in operating leverage and rise in financial business mix..Click on the attachment to read the full report:.Zomato - Wholesome Meal At A Deal: Motilal Oswal Initiates Coverage.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Paytm - Get Set PAY: Motilal Oswal Initiates Coverage

Two-pronged strategy to drive profitability, Ebitda to break-even in FY25E.

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