Paytm's parent company, One97 Communications, experienced an 8.1 percent surge in its shares on Thursday, June 08, after reporting a significant 169 percent increase in its loan distribution business for the first two months of the fiscal year.
One97 Communications Ltd., established in 2000, is a small-cap company with a market capitalization of ₹49,356.34 crore functioning in the service sector. The company runs Paytm, which is a digital goods and mobile commerce platform that delivers mobile content and commerce services to various mobile consumers through telecommunication applications cloud platforms.
In April and May, the company witnessed accelerated growth, with disbursements through its platform reaching ₹9,618 crore, a substantial rise from ₹3,576 crore during the same period last year.
During Thursday’s trade, the stock opened at a price of Rs. 737 per share against the previous close of Rs. 727 per share and grew further during the early trading session to touch an intraday high of Rs. 785.95.
It was trading at ₹779.60, up by 7.24 percent, at 10:35 a.m. on the NSE.
The stock touched a 52-week high of Rs. 844.70 on August 08, 2022 and a 52-week low of Rs. 438.35 on November 23, 2022, indicating that at the current level, the stock is trading 77.8 percent above its 52-week low and 7.7 percent below its 52-week high.
The stock has grown over 7 percent in the last one month. Moreover, in the past six months, it has increased by nearly 54 percent. However, the stock has yielded a negative return of almost 54 percent in the last five years.
Paytm reported a notable 54% increase in the number of loans disbursed over the course of two months, reaching a total of ₹85 lakh. The company also revealed its existing partnership with seven major lending partners and expressed intentions to onboard 3-4 additional partners in the current financial year.
Additionally, the company reported a remarkable 118% growth in the number of payment devices subscribed by its merchants in the current fiscal year.
According to an exchange filing, the count of merchants paying subscriptions for devices such as soundboxes and point-of-sale (PoS) machines rose to 75 lakhs during April and May, with an additional 4 lakh merchants added in May alone.
This figure represents a significant increase compared to the 34 lakh merchants recorded in the same period of the previous financial year.
Regarding other key metrics, Paytm announced that it recorded an average monthly transacting user (MTU) count of 9.2 crores during the two-month period, indicating a growth rate of 24% compared to the corresponding period in the previous year.
According to a MintGenie poll, 12 analysts on average have a ‘STRONG BUY’ call on the stock.