Paytm Q2 Results Review - Sustained Recovery; TPAP License To Drive Growth: Dolat Capital

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Oen 97 Communications Ltd. reported revenue growth of 10.5% QoQ (our estimate: 8.3%) with monthly transacting users decline of 9%, but average revenue per user growth of 21.4% QoQ. Payment Services and Financial Services grew 7% and 34% QoQ respectively. Adjusted Ebitda loss reduced dramatically to Rs 1.85 billion (our estimate: Rs 2.7 billion), led by revenue uptick and strong cost management, covering up even for upfront charge on DLG (~Rs 650 million).Management continues to guide positive adjusted Ebitda by Q4 FY25 (excluding UPI incentive). Q2 witnessed a sharp recovery in performance and now with NPCI approving new UPI client onboarding under third-party application provider license should pave path for MTU revival. We have kept our growth/operating profit margin estimates largely unchanged adjusted for divestment of entertainment biz. Maintain ‘Buy’ rating with DCF based revised target price of Rs 960 (implies ~four times on FY27E enterprise value/sales and about 50 times on FY27E earnings)..Click on the attachment to read the full report:.Paytm Q2 Results Review - Revenue, Gross Merchandise Value Inline; Contribution Margin Expands: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Paytm Q2 Results Review - Sustained Recovery; TPAP License To Drive Growth: Dolat Capital

The brokerage expects robust growth of 15.5% QoQ, driven by the festive season tailwind and improving business recovery in all segments.

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Paytm Q2 Results Review - Sustained Recovery; TPAP License To Drive Growth: Dolat Capital

The brokerage expects robust growth of 15.5% QoQ, driven by the festive season tailwind and improving business recovery in all segments.

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