Paytm IPO Review & Recommendations

Paytm IPO Review by Dilip Davda May apply

[Dilip Davda]  No doubt this company is a mega player in the digital ecosystem segment and has a lion share, but its top line has remained almost static for the last three fiscals and has been incurring losses for all these years and may remain in red in the near term too as per statements on page 38/39 of RHP. It has huge carried forward losses and negative earnings. Thanks to premiums collected for placements that have helped this company to post positive NAV. Issue pricing is with a negative P/E. Its market cap of Rs. 1.39+ lakh cr. raises eyebrows. However, considering madness seen for Unicorn and high tech sector companies in the recent past is perhaps indicating changed sentiment for investment parameters. On all fronts, this issue is exorbitantly priced discounting all near term positives. Of late many new entrants have entered this space and raised a threat. Hence cash surplus/risk seekers only may consider an investment with a long term perspective, others can ignore it. Read detail review...