Shares of new-age tech companies were on a roll in Wednesday’s trading session. Paytm stock jumped over 9.4 per cent to hit a day’s high of 644.90 and shares of Zomato also zoomed over 9 per cent to hit a day’s high of Rs 53.9 on the Bombay Stock Exchange.
Notably, Macquarie has doubled-upgraded the Paytm stock to ‘Outperform’ from ‘Underperform’. “Since our last target price cut, Paytm has positively surprised on the distribution of financial services revenue by a wide margin and has also managed to control overall expenses and charges,” it said.
Also read: Paytm shares rally 9% on Macquarie upgrade, January business update. Full details
It also believes a lot more needs to be done on corporate governance by getting an independent non-executive chairman, more independent members on the board, etc. Macquarie has lowered its FY23–25E loss-per-share estimates by 18–72 per cent and raised its target price to Rs 800 from Rs 450.
Also read: Macquarie slashes Paytm price target to Rs 450
In March 2022, the global financial major slashed its price target for the digital major Paytm citing regulatory headwinds including a falling probability of getting a banking licence. It initiated coverage on the stock in November 2021 with a target price of Rs 1,200, which was cut to Rs 700 and then further slashed to Rs 450.
Goldman Sachs has also upped its target price for Paytm to Rs 1,150 from Rs 1,120 on the back of significantly stronger Q3 FY23 (December 2022) quarter results. It raised FY24 adjusted EBITDA estimate by 30 per cent and the FY25 EBITDA estimate by 14 per cent.
Shares of Zomato are also in focus ahead of its December quarter numbers. CLSA expects Zomato to continue its march towards profitability. It has a ‘Buy’ rating on the stock with a target price of Rs 70.
According to Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One Ltd, Paytm has made its first attempt to test the 200 SMA post the strong surge but failed to surpass the same convincingly. At present, it is hovering near the sloping trend line of the recent two swing highs and until it surpasses the 650-660 zone, timidity is likely to continue in the counter.
“As far as levels are concerned, 570-550 is likely to provide a cushion to any blip, followed by the strong support of 520. On the higher end, 650-660 is likely to act as immediate resistance, followed by the immediate swing high of 720 levels in a comparable period,” he said.
Sharing his technical view on Zomato, he said the stock is in a secular downtrend and is hovering below its major moving averages on the daily chart, indicating inherent weakness.
“At the current juncture, the stock has a series of resistances starting from 53.60 to 56 odd zone, followed by the bearish gap of 59.55-59.80. On the flip side, 46-46.50 is likely to cushion any fall, while any further could disrupt its recent move, and it may plunge to lower levels in a comparable period,” Krishan said.
Shares of Paytm hit its 52-week high of Rs 978.65 on February 08, 2022. The stock is down over 40 per cent from its 52-week high. However, it is up over 34 per cent from its 52-week low of Rs 439.60.
Likewise, Zomato stock is also down over 48 per cent from its 52-week high of Rs 95.45. The stock has recovered over 22.5 per cent from its 52-week low of Rs 40.55.
Recently, Paytm announced that its merchant payment volumes (GMV) for January stood at Rs 1.2 lakh crore or $15 billion, up 44 per cent YoY. Paytm said it saw continued scale in its loan distribution business with disbursements of Rs 3,928 crore or $480 million, up 327 per cent. Also, it disbursed 3.9 million loans in January, up 103 per cent.
Zomato’s September quarter loss narrowed to Rs 250.80 crore compared to a Rs 434.90 crore loss in the corresponding quarter of the last fiscal. However, the Q2 loss was higher than Rs 186 crore loss in the June quarter of the current fiscal.
Shares of Nykaa were also trading in the green territory in Wednesday’s trading session. The stock jumped over 4.6 per cent to hit a day’s high of Rs 145.50 on BSE. However, the stock is still down over 56 per cent from its 52-week high of Rs 317.95.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
