The great Indian app Payment received its first buy note this week, after a less than brilliant start last month on the country’s stock exchange.
As Bloomberg News reported on Thursday, December 2, brokerage firm Dolat Capital Market Pvt. gave Paytm its buy rating, saying he expects the company to reach profitability by March 2026. Dolat said Paytm’s transition to a financial services “maker” of an agent who sells services, coupled with robust user growth, will support the business.
Paytm started out as a payment app, but has since evolved to offer services like insurance, airline tickets, banking, and more.
Read more: Paytm Shares Dives Into Early Indian Market
Dolat analysts say Paytm has gone from ‘want’ to ‘need’, positioning the company as “one of the most powerful digital brands to seize a significant portion of the opportunities that will evolve in the ecosystem. Indian Internet ”.
Bloomberg said the brokerage firm set a target price of 2,500 rupees, or $ 33.40, or 16% above Paytm’s issue price. The company’s shares fell 2.7% on Thursday, marking its fifth day of decline.
Paytm’s parent company, One97 Communications, raised $ 2.5 billion in what was India’s largest IPO, only to see shares drop 25% on the day the exchange opened last month. The company is backed by some of the world’s largest investors, including SoftBank, Ant Group, and Berkshire Hathaway.
Paytm announced its first financial results as a publicly traded company last weekend, posting losses of 4.74 billion rupees ($ 63 million) in the July-September quarter compared to a year ago a year, fueled by increased spending. Revenue increased by over 60%, driven by growth in its financial, cloud and business services.
See also: Paytm Founder Says Company’s Public Debut Mirrors Tesla’s
Last month, Paytm founder Vijay Shekhar Sharma compared the company’s dismal beginnings to what Tesla experienced when it first listed.
During a four-hour company meeting, Sharma asked employees to learn from the automaker’s initial struggles and aim for a similar rebound by focusing on expanding the market.