Is Paytm Share A Good Buy At Current Levels?

Is Paytm share A Good Buy?

Paytm share which was the largest IPO when it was launched, is now trading at around 75% discount at around Rs.527. As against the IPO price of Rs.2150, shares of Paytm were listed on its opening day at Rs.1950 and touched a low of Rs.1564 on its very first day of listing. The share is continuously following the downward trend in its price and the shareholders are still looking for the answer to this question –“Is Paytm Share A Good Buy At Current Lelevs?”

Unprecedented Downfall of Paytm Share:

Shareholders of the Paytm are highly disappointed as the downward trend in the share price continued for a very long period and ultimately came down to Rs.527 from its IPO price of Rs.2150.

Company Background and its Business:

Paytm Brand is owned by the listed Company One97 Communications Limited. Company is India’s leading digital ecosystem for consumers and merchants. It was founded in 2010 by Vijay Shekhar Sharma.

Paytm Share Buy Back Plan:

Shareholders have lost over 75% of their investment since the day of its listing. Further, the shareholders are still not sure as to whether this continued downfall in the share price will stop in near future or not. To give some relief to the Paytm Shareholders and to boost some confidence of the investors, Paytm Management has come out with a Buy Back Plan of its share at a price of Rs.810 per share as against the current market price of the share which is around Rs.527.

Future of Paytm Share:

Second quarter financial results of the Company  indicate healthy traction across all the businesses of the company. The revenue for 2^nd quarter was Rs.1914 Crore with 76% growth. As a result of continued focus on improving monetization capabilities, widening contribution margin as well as significant operating leverage, the EBITDA of the company before ESOP cost stood at Rs.166 Crore, showing an improvement of 61%. Looking into the financial performance of the company, it can be concluded that from now onwards the prospects of the company are bright and looking at the current market price of the share which is already trading at 75% discount, we can safely say that Paytm is a good stock to invest at current level for medium to long term investment.

Paytm Share Price Target 2023:

Looking at the current market price, its buyback plan at Rs.810 and its financial performance, we can expect a price target of around Rs.1100 during 2023.

Paytm Share Price Target 2024:

Paytm is likely to touch the level of around 1500-1600 during 2024

Paytm Share Price Target 2025:

Paytm is likely to touch the level of around 2000-2200 during 2025

Disclaimer:

Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the market expectations from the Budget 2023. Investors are advised to take into consideration all these factors before making any investment in Capital Market.

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