Paytm One 97 Communication Unlisted Shares
The Company was incorporated on 22nd December 2000. The Company carries on the business inter alia to provide Telecom based value-added services to various telecom operators across the Territory, Payment gateway aggregator services, Ticket services, Utility bills payments, Insurance, Hotel booking services etc. They got a real boost in their sales during demonetization in 2016.
Financial Performance in 2018-19
| Particulars | 2018-19( Cr) |
| Total Income | 3579 |
| Depreciation | 99.51 |
| Tax Expense | -6.49 |
| Total Expenses | 7730 |
| Net Profit/(Loss) | -4172 |
| Paid-up Capital | 57.3 |
| Reserves & Surplus | 5738.68 |
The reason for loss or inadequate profits:
The Company has incurred huge capital expenditure in creating a brand and establishing its business activity. They have incurred a considerable amount in various capital & operational expenditures which resulted in losses during the financial year.
Steps to be taken or proposed to be taken for improvement:
The Company is focusing on strengthening its position in various business segments like Payments Bank, Insurance and Insurance Broking, travel ticketing, hotel, mobile wallet services etc. and that would result into a better turnover in coming fiscal years.
They have created “Paytm” as a popular brand and platform which provides ease of online marketplace, mobile wallets, recharges and Payment Gateways Aggregator services, Payments Banking Services etc.
Foreign Investment or Collaboration
The Company has received Foreign Direct Investment under FDI guidelines. IN 2018-19, out of total paid-up capital, 83.04% (approx.) is held by Foreign Investor under Foreign Direct Investment scheme of RBI. Further, the Company has following wholly-owned subsidiaries and joint ventures overseas:
| Name of the Entity | Status | Country |
| One97 Communications Singapore Private Limited | Wholly owned Subsidiary | Singapore |
| One97 Communications Nigeria Limited | Wholly owned Subsidiary | Nigeria |
| One97 USA Inc. | Wholly owned Subsidiary | USA |
| One97 Communications FZ-LLC | Wholly owned Subsidiary | Dubai |
| Ciqual Limited | Joint Venture | UK |
Paytm One 97 Communication Unlisted Shares Details:
| Total Available Shares: | 50000 |
| Face Value: | ₹ 10 Per Equity Share |
| ISIN: | INE982J01012 |
| Lot Size: | 5 Shares |
| Current Unlisted Share Price: | ₹ 16000 Per Equity Share |
Promoters And Management:
Financials of Paytm One 97 Communication Unlisted Shares:
| Particulars | 2018-19(Cr) | 2017-18( Cr) | 2016-17(Cr) |
| FV | 10 | 10 | 10 |
| Revenue | 3579 | 3314.8 | 780.19 |
| Expense | 7730 | 3884.95 | 1961.29 |
| PAT | -4172 | -1604.34 | -899.64 |
| EPS | -743 | -318.44 | -194.73 |
As per the news published in Moneycontrol, the PhonePe App of Flipkart acquired by Walmart last year may be valued at around 10 Billion dollars. Last year when Walmart bought Flipkart, it was valued around 20 billion dollars. So roughly we can say as on date the cumulative valuation of Flipkart and PhonePe is $30 Billion.
Recently, Walmart has infused $280 Million in PhonePe in two tranches to compete in the market.
The company is facing the biggest competition from Paytm and Google Pay. Google Pay recorded more than 240 million transactions in May-19, which beat both Flipkart-owned PhonePe, which had around 230 million UPI payments last month and Paytm having 200 million transactions as per an Economic Times report.
Facebook will be launching Watsapp Wallet next year. With Watsapp’s world-wide reach and huge customer base, the competition is going to be tough for existing players. So we might not able to see the kind of growth in the existing wallets in future.
Paytm News:
https://unlistedzone.com/paytm-has-given-diwali-bonus-in-the-form-of-esop-22-10-2019/
UnlistedZone Research Report on Paytm Unlisted Share:
https://dyvmwwyqozzzb.cloudfront.net/main/Paytm-2.pdf
*Paytm- Quick Stats*
Revenue in 2017-18 ~ 3050 cr
Revenue in 2018-19 ~ 3232 cr
Loss in 2017-18 ~ 1600 cr
Loss jumps in 2018-19 ~ 4200 cr
Market cap in 2017-18~ $9bn
Market cap doubles to ~ $18 Bn
https://dyvmwwyqozzzb.cloudfront.net/main/Paytm-Pilling-losses.pdf
How does a retail investor make profit after buying at current price of 18,000/- per share? What will be the price if this ever goes to IPO?
Retailers were asking the same question last year when the share price was around 8000-10000. In the meanwhile Warren Buffet Investment Company Berkshire Hathway did strategic investment somewhere around 12000-13000 per share. After this news came in the market the demand for Paytm multi folds which has dragged the price to 17k-18K level.
We at UnlistedZone too feel that it is slightly overvalued but if nobody wants to sell at a lower level then there is no option but to buy at those level which is available in the market.
Paytm is likely to face huge competition this year with the launch of WatsApp Pay.
https://economictimes.indiatimes.com/tech/internet/mark-zuckerberg-vs-vijay-shekhar-sharma-whatsapp-pay-can-gobble-up-paytm/articleshow/69183215.cms
Max amound paid per share is around 10500/share in 2017/18, now they are asking 18000/share almost @double price so why one should pay double amount rather than in market many great business models are available at much lover price so one can plan investment in them
Sir, the Indian E-commerce industry in the last 10 years have seen tons of startup started and went into ash.
Today the E-Commerce business is a cash-consuming model as the competition is super tough in the market but in future, it will be a cash cow. We have seen how Flipkart which was started10 years ago has not generated a profit in a single year but sold to Walmart at Rs. 1 Lakh Crore which is the biggest business acquisition in the history of India. So if Walmart is buying loss-making entity at such valuation must have seen something in the company which you and I at this stage can’t see.
I agree that these companies today are not making any profit but please understand that this is the consolidation phase going for the sector and in coming few years we will see 1-2 companies dominating in the sector and all other either will vanish or will be acquired by biggies.
The opportunity in India for the E-commerce market is huge. As per statistics, e-commerce penetration is strands only 28% and the growth of the sector is projected to grow at CAGR of 23% in the next 5 years. The few companies which will survive will become cash-cow. The Paytm would be one among them without any doubt.
*********Good News for Paytm Payment Bank**************
Paytm Payment Bank Limited has resumed adding KYC of the new bank and wallet customers which was stopped by RBI in June last year due to some observation made by the audit committee.
The RBI has given there nod to start adding new customers from 31.12.2018 onwards. Now the potential customer can open a saving or current account with the payment bank.
Paytm Bank is expecting to add an additional 10 Cr customers by the year-end.
Paytm to Enter in Broking and Mutual Fund Business- This will shake up the entire Broking Industry.
After entering the financial products distribution market with mutual funds, Paytm Money wants to offer shares of listed companies directly to customers. The firm is expected to submit its application within two weeks to either of the two exchanges, BSE and the National Stock Exchange (NSE).
Ashishkumar Chauhan, chief executive officer at BSE, said: “If they wish to apply for a broking license, we would be delighted to welcome them.”
Paytm Money had launched an app to offer mutual fund products to its clients. Close to 1.07 million customers have already registered for the service. At present, more than 10,000 customers a day are allowed access to the app to be able to buy and sell mutual funds.
By offering direct equities, Paytm Money aims to attract slightly more sophisticated investors.
Paytm’s entry could potentially shake up the markets and bring in new investors, given the lack of penetration of household savings in financial instruments, according to market experts.
Paytm claims to have more than 350 million registered users.
The question is how will Paytm ensure that investors don’t churn frequently.
One of Paytm Money’s advantages is that it can offer products at low cost. It already offers direct plans of mutual funds, which do not involve distributor commissions and thus come at a lower cost. Besides, it does not charge an advisory fee. It remains to be seen if it waives off brokerage charges along the lines of Zerodha, which does not charge if you take delivery of stocks bought on its platform.
What are the other businesses into which PAYTM wants to enter in future
Hotel Booking, Bus travel etc.
India’s largest payment services provider Paytm said Warren Buffett-owned Berkshire Hathaway Inc. has invested an undisclosed amount in the company, in a rare deal for the world’s best-known investor who typically avoids internet firms. One97 Communications Ltd, which owns Paytm, also said Berkshire’s investment manager Todd Combs who was leading the investment discussions will join its board.
Mint first reported on Monday that Buffett’s Berkshire Hathaway is set to buy a 3-4% stake in One97 for ₹ 2,200-2,500 crore, the billionaire investor’s first investment in an Indian company.
It is a must buy stock in everyone’s portfolio. The company is foraying into every other business ranging from MFs, Insurance, Travel-Ticketing, etc to reap the benefit. The company has tie-up with all the Toll tax companies wherein the company is putting fast tags for seamless movement of traffic in tolls booth. So overall we can say the company is worth to consider for investment.
They are selling to retailers @ much higher rate…so how one can plan investment at such high rate & in one year company had not posted any magical profit figures so people think of paying higher amount even losses are widen in current fiscal year