Paytm Wild Ride Continues As Stock Sinks Again Ahead of Earnings
Paytm Wild Ride Continues As Stock Sinks Again Ahead of Earnings
New Delhi: Digital Payment of India Giant Paytm was set for other battles from supervision on Saturday when he reported income after the initial public offering record and debut stock market full of turmoil.
In front of the results, Paytm shares fell by 7.7% in the initial Mumbai trade on Friday. While stocks have jumped around 32% over the past three days, still below the price set in the $ 2.5 billion IPO because investors continued to consider the long-term prospects.
“Revenues for Paytm remain less or less flat even though there is an increase in the customer base for the past few years,” said Ruchit Jain, a research head in a discount discount broker 5Paisa.com. “Even though it has reduced losses, no business segments, such as payments, consumer loans or insurance distributions, show signs of profitability.”
There will be a focus on which segment began to produce more money and how the company utilizes its customer base to sell more products, Jain said.
Apart from the challenges, Paytm supporters cover people like Berkshire Hathaway Inc. Softbank Group Softbank Group Masayoshi and Canadian Pension Investment Council are among what is called an anchor investor in the IPO that buys more shares on Tuesday and Wednesday, according to people who are familiar with this problem.
“The road to profitability for Paytm is far away,” said Chakri Lokapriya, Chief Investment Officer at TCG Advisory Service. “Nearly 75% of their business is digital payment, which is now a very competitive segment, where customers maintain challenges.”
Lokapriya said he was looking for new customers and traders in Paytm, and updates about business lines and new initiatives to improve the “customer completeness” and to encourage loans and insurance products.
In the submission of the exchange after his debut, Paytm said the value of gross merchandise rose 131% in ₹ 83,200 crore ($ 11.2 billion) in October in a critical period in front of the Gods. It also distributes 1.3 million loans and mobilizes one million additional merchant devices.
It fails to impress PVT Macquarie Capital Securities (India), which has downbeat calls on stocks and says new details do not materially affect the estimated profit and loss.
The announcement of quarterly and half-annual Paytm on Saturday will be followed by a revenue call at 6pm.
