Paytm - Macro Headwinds Compelling Growth Moderation: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.One 97 Communications Ltd. mentioned that the scale-down in postpaid business is primarily prudential in nature and is to preempt any asset quality issues in coming quarters. Asset quality metrics remain steady and the pick-up in high-ticket personal loans and merchant loans, along with the increase in the number of lending partners, should support steady growth in the medium term. While the longevity of these measures and the outlook in low-ticket unsecured loans remains under watch, we trim our FY24/FY25 disbursement estimates by 15%- 18%, resulting in an 11-16% cut in our adjusted Ebitda over FY24E/FY25E. We value Paytm at 20 times FY28E EV/Ebitda and discount the same to FY25E at a discount rate of ~14%. We thus value the stock at Rs 1,025, which implies 4.5 times September25E price/sales. We maintain our 'Buy' rating on the stock..Click on the attachment to read the full report:.Paytm - Postpaid Business On Cautious Route; Loan Business Pivot To Higher Ticket Size: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Paytm - Macro Headwinds Compelling Growth Moderation: Motilal Oswal

Asset quality metrics steady; cutting disbursement, Ebitda estimates

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