Paytm Q4 Results Review - Lower Than Expected Disruption; Recovery From Q2 FY25 Onwards: 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 Communications Ltd. (Paytm) reported revenue decline of 20.5% QoQ (our estimate: -29%) with monthly transacting user/average revenue per user decline of 4/17% QoQ, primarily due to business disruption (Paytm Payments Bank Ltd. impact) and buy-now-pay-pater calibration. Consumer payments and loan distribution declined 16%/50% QoQ, while merchant payments Biz grew 3% QoQ. Adjusted Ebitda stood at Rs 1.03 billion (estimate: Rs 0.5 billion) aided by UPI incentive and lower Opex. For Q1, the company expects revenue of ~Rs 15-16 billion (implies ~20% cut) and adjusted Ebitda loss between Rs. 5-6 billion, with sharp recovery Q2 onwards. Paytm’s renewed focus on business growth and cost efficiency signals the right direction to revival. We have cut our FY25/FY26E revenue estimates by 8%/7% and expect profitability goals to further defer. However, we believe current market price does not factor a potential sharper recovery Q2 onwards and thus we maintain ‘Buy’ rating with DCF based target price of Rs 650 (implies 2.4 times on FY26E enterprise value/sales)..Click on the attachment to read the full report:.Paytm Q4 Results: Net Loss Widens To Rs 551 Crore, Revenue Down 20.5%.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 Q4 Results Review - Lower Than Expected Disruption; Recovery From Q2 FY25 Onwards: Dolat Capital

Weak guidance for Q1; April/May data sees green shoots

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Paytm Q4 Results Review - Lower Than Expected Disruption; Recovery From Q2 FY25 Onwards: Dolat Capital

Weak guidance for Q1; April/May data sees green shoots

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