Buy or Sell Paytm: Buy or sell Paytm shares, brokerage’s opinion after the company suffered a loss of Rs 550 crore.

Paytm Stock Outlook :The shares of fintech company One97 Communications (Paytm) are falling today. Today the company’s stock fell by about 3.5 percent to Rs 353 (Paytm Stock Price). Whereas on Wednesday it closed at Rs 368. The company has released its quarterly results on Wednesday. The company’s loss has increased to Rs 550 crore in the March quarter of financial year 2024. After the quarterly results, brokerage houses are also forming their opinion regarding the stock. Some have advised to sell while others have advised to hold. Some have given underperform rating and some have given equal weight.

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What is the rating of the brokerage house

Brokerage house JM Financial has given a Sell rating on Paytm’s stock and has set a target price of Rs 300. The brokerage says that the tightening by RBI will put pressure on the company’s finances in the coming quarters. Brokerage house Morgan Stanley has maintained an Equal Weight rating on the stock with a target of Rs 555, while Macquarie has given an Underperform rating with a target of Rs 275. Brokerage house Citi has given a Sell rating on the stock with a target of Rs 360.

Brokerage house Jefferies had given Hold rating on Paytm stock, whereas earlier the brokerage’s rating was underperform on the stock. However, the brokerage has reduced the target price from Rs 500 to Rs 400. Brokerage house JP Morgan has given Underweight rating on Paytm and reduced the target price by Rs 350 to Rs 250 per share. At the same time, brokerage house Bernstein has given outperform rating and given the target price at Rs 600.

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How were the company’s results?

One 97 Communications (Paytm)’s loss widened to Rs 550 crore in the fourth quarter of FY 2023-24 from Rs 167.5 crore in the same period last year. The company’s operational income declined by about 2.9 per cent year-on-year to Rs 2267.1 in the March quarter from Rs 2464.6 crore in the same period last year.

The company’s loss reduced to Rs 1422.4 crore in the entire financial year 2023-24. The company’s loss in the financial year 2022-23 was Rs 1776.5 crore. Paytm’s annual revenue increased by about 25 percent to Rs 9978 crore, from Rs 7990.3 crore in FY 2022-23. The Reserve Bank of India (RBI) has barred Paytm Payments Bank Limited (PPBL) from accepting deposits, credit transactions or top-ups in any customer account, wallet and Fastag from March 15, keeping in mind the interest of customers including merchants. Paytm had estimated a loss of Rs 300-500 crore due to RBI’s ban on PPBL.