One 97 Communication (PAYTM) shares declined 5 percent in early trading on August 12 even when the company said its business grew multiplying year-to-year (yoy) in July. However, uncertainty over the re -appointment of his CEO works as an obstacle.
At 10:12 am, the stock traded at RS 778 each in BSE, down -5.75 percent, while Benchmark Sensex is at 59,368.51, up 35.91 points or 0.06 percent.
The company in its monthly update said the loan distribution business was increased to 2.9 million total loan disbursement during the month grew by 296 percent. This aggregate with a total loan value of RS 2,090 Crore ($ 264 million) during the month (512 percent growth).
“Our loan distribution business is the annual run-rate of 25,000 crore hospitals, and we believe there are many opportunities to improve in this business. We are conservative on the quality of the book (especially given the possibility of macro headwinds), “said the company.
The company said the total Merchant Gross Merchandise Value (GMV) which was processed through our platform for July 2022 was collected to around RS 1.06 Lakh Crore ($ 13 billion), marking Yoy’s growth 82 percent.
Negative short term for these shares is the Institutional Investor Advisory Services India (IIAS) Advisory Advisory Advisory for Proposal to re -appoint Vijay Shekhar Sharma as the PayTM Chief Executive Officer (CEO) for five years. They have advised the company’s shareholders to vote against these steps.
Meanwhile, some brokers say it is likely to be limited to the impact of the latest RBI guidelines and must help remove one of the main overhangs in stock.
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Regulations remain the main focus area for PayTM investors, and the latest developments such as digital loan guidelines, UPI through credit cards, RBI payment vision documents, etc. with Goldman Sachs India.
We believe that the next catalyst can be in the form of a potential resolution of the user’s onboarding ban on Paytm Payments Bank (PPBL), which the new Paytm mentions PPBL makes good progress. Apart from this, in front of the regulations, the removal of the overhang on the MDR (the Discount Level of the merchant; the time line is not clear) can be another catalyst, “he added.
Brokers have a ‘buy’ rating with a target price of 1,100 RS.