Paytm share price gains over One 97 Communications rose 8.60% to ₹414. This rally has pushed the stock up 33.54% from its all-time low of ₹ 310 touched in the second week of May.
Extending its winning streak for the third consecutive day, shares of Paytm’s parent company One 97 Communications gained another 8.60% in early morning trade, crossing the ₹400 mark for the first time in 8 weeks at ₹414. .
This rally has pushed the stock up 33.54% from its all-time low of ₹ 310 in the second week of May. During Friday’s trading session, the company’s shares touched the 10% upper circuit limit, after gaining 2% in the previous session.
Stock exchanges recently raised Paytm’s upper circuit limit to 10%, initially reducing it to 5% due to significant volatility due to RBI restrictions on Paytm Payments Bank.
Paytm recently said it is seeing early signs of recovery and strong consolidation in its Unified Payments Interface (UPI) business. In May, the total value of UPI transactions processed on the Paytm platform reached ₹1.24 trillion, driven by several new initiatives such as credit cards on UPI and UPI Lite.
According to ANI, total transactions on the platform stabilized at 1.14 billion in May, cementing Paytm’s position as the third-largest player in terms of market share since becoming a third-party application provider (TPAP) in March. Reinforced.
Paytm share price gains over
Additionally, Paytm is leading the way in peer-to-merchant (P2M) UPI transactions due to its vast merchant base.
In May 2024, UPI achieved a milestone of handling nearly 14 billion transactions, a substantial 49% year-on-year growth in processing transactions worth Rs 20.45 trillion, the report said. is the highest since its inception.
This growth underscores the growing preference for digital payments among Indian consumers and businesses. Paytm is moving fast on UPI and has partnered with various banks and financial institutions, including Axis Bank, HDFC Bank, State Bank of India (SBI) and YES Bank, to expand its UPI service.
Meanwhile, in May, PhoneP and Google Pay, two major players in the Indian fintech ecosystem, handled transactions worth ₹7.23 trillion and ₹10.33 trillion, respectively.
In January, the Reserve Bank of India (RBI) banned Paytm Payments Bank Limited (PPBL) from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags effective March 15 in the interest of consumers. was given The businessman
As a result, investors sold off the company’s shares heavily in subsequent months, resulting in a 47% decline in February, a 7.51% decline in April, and an additional 3.13% decline in May.
For the fourth quarter of FY2023-24, the company’s loss widened to ₹550 crore, impacted by the RBI’s ban on payments for bank-related transactions. This compares to a loss of ₹167.5 crore in the same period last year.
Paytm’s revenue from operations declined 2.8% to ₹2,267.1 crore in the reported quarter, down from ₹2,464.6 crore in the corresponding quarter of FY23.
For the year ended March 31, 2024, the company’s loss narrowed to ₹1,422.4 crore, compared to a loss of ₹1,776.5 crore in FY23. Paytm’s annual revenue grew nearly 25% to ₹9,978 crore for FY24, from ₹7,990.3 crore in FY23.
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The opinions and recommendations expressed in this article are those of individual analysts. These do not represent the views of the mint. We advise investors to consult certified experts before making any investment decision.