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Paytm shares jump on strong loan disbursal growth; Morgan Stanley retains 'equal-weight' call

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Paytm shares jump on strong loan disbursal growth; Morgan Stanley retains 'equal-weight' call

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Paytm parent One97's shares continued to rise for a second straight day on Thursday, after the digital payments company reported strong growth in loan disbursals. Founder and CEO Vijay Shekhar Sharma said the company should be operating EBITDA break-even in six quarters.

Paytm shares jump on strong loan disbursal growth; Morgan Stanley retains 'equal-weight' call
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Buy / Sell One 97 Paytm share

Paytm parent One97 Communications' shares extended gains to a second straight day on Thursday, after the digital payments company reported a jump in loan disbursals in the quarter ended March 31.
Paytm shares gained as much as Rs 19.9 or 3.1 percent to Rs 657 on BSE.
Morgan Stanley maintained its 'equal-weight' rating on Paytm with a target price of Rs 935. At Wednesday's closing price, the brokerage's target indicates a 46.7 percent upside in the One97 stock.
The brokerage also said growth in the company's gross merchandise value (GMV) is steady with continued strong growth in the monthly transacting user (MTU) base. 
Paytm, in a quarterly business update released during the market hours on Wednesday, said its total GMV aggregated to approximately Rs 2.59 lakh crore ($34.5 billion) in the fourth quarter of FY22, up 104 percent on a year-on-year basis.
The company also reported a surge in loan disbursements. According to the update, the number of loans disbursed through its platform increased 374 percent on-year to 6.5 million. Loan disbursals in value terms soared 417 percent on year to Rs 3,553 crore, it added.
Paytm Founder and CEO Vijay Shekhar Sharma said, in communication to shareholders, that the company should be operating EBITDA break-even in the next six quarters. "Importantly, we are going to achieve this without compromising any of our growth plans," he said.
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Paytm said it saw strong sequential trends despite the impact of the festive season in the December quarter.
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