Paytm Gets Motilal Oswal's 'Neutral' Rating Amid Near-Term Uncertainties

Although Paytm’s Rs 156 billion cash cushion offers comfort, consistent delivery is critical for sustainable shareholder returns..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..Motilal Oswal Report.One 97 Communicationsl Ltd. is making steady progress toward profitability, underpinned by its strategic shift toward financial services and disciplined cost management. With financial services expected to contribute 27% of revenue by FY28E (~25% in FY24), the business model is becoming more margin-accretive. An estimated revenue CAGR of 22% over FY25-28E (to Rs 126 billion) and continued merchant-centric growth should help the company achieve Ebitda breakeven by FY26E. Key catalysts include loan growth via FLDG-backed partnerships, continued thrust on merchant expansion, and exemplary cost control. However, regulatory overhangs, market share volatility in UPI, and execution risks in the rapidly evolving digital payment space keep us cautious. Although Paytm’s Rs 156 billion cash cushion offers comfort, consistent delivery is critical for sustainable shareholder returns. We maintain a Neutral rating with a revised target price of Rs 1,000, reflecting 20.0x FY27E Ebitda, balancing near-term uncertainties while maintaining long-term stability..Click on the attachment to read the full report:.'Buy' Hindalco Shares Maintains Motilal Oswal As Novelis, India Business Growth Outlook Remains Robust.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 Gets Motilal Oswal's 'Neutral' Rating Amid Near-Term Uncertainties

Motilal Oswal maintains a Neutral rating on Paytm with a revised target price of Rs 1,000, reflecting 20.0x FY27E Ebitda, balancing near-term uncertainties while maintaining long-term stability.

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