Paytm - Stabilise Phase Done, Ready For Momentum; Reiterate 'Buy': 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.One 97 Comunications Ltd. is poised for recovery after the disruption caused by Paytm Payments Bank Ltd. and Postpaid impact. Despite challenges, the company continues to possess large number of use cases (serving both on need and want), huge customer base (MTUs of 78 million plus, ATU of ~150 million+) and robust tech platform. Paytm remains in a bright spot of continued rapid growth in digital payments in India. We believe that the company has potential for growing its revenues multi-fold over next decade and is expected to deliver steadily growing profits FY26E onwards. We believe that DCF valuation is an ideal tool to value the real long-term potential of this business. The growth momentum is factored in two stage projections wherein-in the first stage we expect a revenue CAGR of 28% over FY25-FY30E andin the second stage we expect a revenue CAGR of 18% over FY30-FY40E. .We expect the business to turn PAT profitable in FY26E and reach a steady state Ebit margin of ~16.1% over FY31-FY40E. We have factored in cost of capital of 12% and terminal growth rate of 2% (beyond FY40E) in our DCF assumptions. .View: We maintain our ‘Buy’ rating on the stock with revised target price of Rs 920 (implies 4.6 times/3.6 times on FY26/FY27E enterprise value/sales)..Click on the attachment to read the full report:.Financials I Non-Lending Sector Check - Rate Cuts To Boost Flows In Longer-Duration Funds: 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 - Stabilise Phase Done, Ready For Momentum; Reiterate 'Buy': Dolat Capital

The brokerage maintains its ‘Buy’ rating on the stock with revised target price of Rs 920 (implies 4.6 times/3.6 times on FY26/FY27E enterprise value/sales).

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Paytm - Stabilise Phase Done, Ready For Momentum; Reiterate 'Buy': Dolat Capital

The brokerage maintains its ‘Buy’ rating on the stock with revised target price of Rs 920 (implies 4.6 times/3.6 times on FY26/FY27E enterprise value/sales).

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