PAYTM Share Price Jumps After Company Announces Impressive User Growth

PAYTM Share Price Jumps After Company Announces Impressive User Growth

PAYTM (One97 Communications) shares jumped by almost 3 percent in today’s trade after the company announced impressive growth in monthly user numbers. PAYTM was facing tough resistance at Rs 790 but in today’s session, the stock was trading above that level. The stock touched intraday high of Rs 798 on back of strong buying.

PAYTM informed that its monthly users during July 2023 were up by 19 percent to 9.3 crore users. PAYTM witnessed a major decline in valuations after the company listed on stock exchanges. Retail investors have registered losses while big investors made money when the company launched its IPO. However, the stock has found support in the recent months and we can expect stable performance in the future. The future performance of PAYTM will also depend on subscriber growth and actual profit declared by the company.

In a statement issued today, PAYTM said, “Our loan distribution business (in partnership with our lender partners) continues to gain scale with disbursements of Rs 5,194 crore ($632 million, y-o-y growth of 148 percent) and 43 lakh loans (y-o-y growth of 46 percent) disbursed in the month of July 2023 through the Paytm platform.”

In the recent times, Indian unicorns have been pushed by investors to show profits. Zomato announced Rs 2 crore as profit in the latest report. This marks the first time Zomato has announced profit, on back of better margins.