Paytm Q2 results today: Will its report card help the stock recover?

The presentation, conference call recording and transcript will be made available on the Company website subsequently.

Since the company debuted on stock bourses on November 18, no earnings previews are available for the September quarter results. All eyes would be on the performance of segments that are starting to make more money and how the company is leveraging its customer base to cross-sell more products.

The stock has had a bumpy ride since its listing, closing at Rs 1,781.15 on Friday, off its issue price of Rs 2,150, with many brokerages recommending a ‘sell’ rating on the scrip, citing expensive valuations.

The latest to join the bandwagon is JM Financial, which suggested a target of Rs 1,240 for the stock. Macquarie had earlier suggested a target of Rs 1,200 on the scrip, that too on the day of its listing.

“While we like Paytm’s strategy to develop a digital ecosystem with its payments business as a fulcrum, presence in too many segments without leadership in none (except payments), should keep Paytm chasing MTU growth instead of profitability/monetisation,” it said.

Paytm had raised Rs 27,200 crore equity capital (Rs 18,900 pre-IPO and Rs 8,300 crore through IPO), against which accumulated losses up to FY22 are expected at Rs 14,100 crore, JM Financial said.

“There are many doubts about the various kinds of service offerings and how they are going to play out for the company. And in terms of losses they are just keeping on increasing for the company and that is where our disappointment may be. Paytm has got listed a bit ahead of its time. We are seeing a lot of disappointment in the way the IPO has played out. And at the end of the day it is not clear how the route to profit is going to be,” said Dipan Mehta, Director, Elixir Equities.