Mutual Funds Increase Stake in Paytm
Domestic institutions, led by mutual funds, have increased their investment in the Indian mobile payments company, Paytm. The latest shareholding pattern reveals that mutual funds have raised their stake by 1%.
Key Investors
Mirae Asset and Nippon Mutual Funds have expanded their stakes to 4.49% and 2.27%, respectively. Dolat Capital reports that Paytm shows stable UPI share and a resilient merchant base, indicating potential for significant revenue growth over the next decade.
Growth Predictions
Emkay Global forecasts strong growth and profitability for Paytm, predicting annual revenues of approximately Rs 100 billion by FY28, with a surplus of Rs 25-30 billion over operating costs. Ventura has set a target price of Rs 1,170 for Paytm over 24 months, highlighting the company’s robust business model despite regulatory challenges.
Future Outlook
Paytm’s focus on enhancing core payment services and expanding into financial services positions it well in the growing digital economy. In Q1 FY25, Paytm reported operating revenue of Rs 1,502 crore and a cash balance of Rs 8,108 crore. The company aims to improve revenue and profitability through growth in GMV, an expanding merchant base, and cost optimization.
Doubts Revealed
Mutual Funds -: Mutual funds are investment programs funded by shareholders that trade in diversified holdings and are professionally managed. They allow people to invest in a variety of stocks, bonds, or other securities.
Paytm -: Paytm is an Indian digital payments and financial services company. It allows users to make payments, transfer money, and use various financial services through its app.
Mirae Asset -: Mirae Asset is a global financial services group that offers asset management services. In India, it provides mutual fund investment options to people.
Nippon Mutual Funds -: Nippon Mutual Funds is a part of Nippon Life India Asset Management, which offers various mutual fund schemes for investment in India.
UPI -: UPI stands for Unified Payments Interface, a real-time payment system in India that allows users to transfer money between bank accounts instantly using a mobile device.
Dolat Capital -: Dolat Capital is a financial services company in India that provides research and advisory services related to investments and the stock market.
Emkay Global -: Emkay Global is an Indian financial services company that offers investment banking, wealth management, and research services.
FY28 -: FY28 refers to the financial year 2027-2028. In India, a financial year starts on April 1st and ends on March 31st of the following year.
Ventura -: Ventura is a financial services company in India that provides stockbroking and investment advisory services.
Q1 FY25 -: Q1 FY25 refers to the first quarter of the financial year 2024-2025, which includes the months of April, May, and June 2024.