One 97 Communications' shares increased by nearly 7 per cent on Monday after the Vijay Shekhar Sharma-led firm reported a 88 per cent increase in revenue for the quarter ended June 2022. Sentiment turned positive toward the stock after the firm said it remained confident of breaking even by September 23 and was bullish on customer demand on platform and monetisation.
Paytm's stock rose 6.74 per cent to Rs 836.5 against the previous close of Rs 783.65 on the BSE.
Shares of the digital payments firm were trading higher than the 5 day, 20 day, 50 day and 100 day moving averages, but were lower than 200 day moving averages.
The stock has lost 37.62 per cent in 2022, but has gone up 19.14 per cent in a month.
The market cap of Paytm went up to Rs 54,130 crore on the BSE.
A total of 3.94 lakh shares of the firm changed hands, giving them a turnover of Rs 32.32 crore. The stock was at a 52 week high of Rs 1961.05 on November 18, 2021 and a 52 week low of Rs 511 on May 12, 2022.
The shares of Paytm recovered 63.69 per cent from their 52 week low in three months.
The large cap stock is still down by 1,118. Its IPO listing price of Rs 1,955 was up 5 or 57.21 per cent on November 18, 2021, compared to its IPO listing price of Rs 1,955 on November 18, 2021.
The firm's net loss of Rs 380.2 crore was widened in the first quarter, to Rs 644.4 crore in the first quarter.
Paytm's contribution, which excludes taxes and marketing expenses but includes promotional incentives, grew three-fold to Rs 726 crore in June 2022 quarter from Rs 245 crore in the year-ago period.
Revenue from operations rose by 89 per cent to Rs 1,680 crore in Q1 from Rs 891 crore in June 2021, up from Rs 891 crore in the June 2021 quarter.
Despite the widening of losses in Q 1, ICICI Securities maintained its 'buy' call on the stock with a target price of 784.
One 97 Communications Ltd Paytm continues to improve its margins, as evidenced by its reported loss of Rs 650 crore in Q 1 FY 23 is lower than the loss of Rs 760 crore in Q 4 FY22, said ICICI Securities.
ALSO READ: Paytm Q 1 net loss is up to Rs 644 crore, revenue up 88.5%
YES Securities has upgraded Paytm from 'Reduce' to 'Neutral' with a revised price target of Rs 850.
Net Payments Margin improvement was driven by multiple factors: Net Payments Margin improvement was driven by 1 The company being able to negotiate better rates from banks 2 Optimizations for better transaction routing, mainly loading of wallet through UPI 3 Improved margin in online payments business due to account rationalisation. The improvement in contribution margin was driven by 1 Improvement in Net Payments Margin 2 Rise in the share of Financial Services Revenue from 6 per cent to 16 per cent in 1 QFY 23 3 Rise in Commerce Revenue 4 Promotional cashback and incentive and other direct cost as a percentage of revenue remaining stable, said YES Securities.