The brokerage house has also raised the EBITDA estimates to 3% on the parent company of Paytm.
The broking firm CLSA has raised the rating on One97 Communication to “Buy” from “outperform” and also raised the target price to Rs 960 from Rs 925 as the company’s EBITDA increased.
The brokerage house has also raised the EBITDA estimates to 3% on the parent company of Paytm.
“It seems to us that the company will try to offset the bulk of the BNPL business loss by doing a little bit in various things – new revenue streams, cost reduction, etc.,” said CLSA.
According to the broking firm, the company is also looking at insurance broking as a new revenue stream. This would be customised business insurance plans for merchants.
On Friday, the company reported a net revenue of Rs 2,850, an increase of 38% from the same quarter a year ago. The company was able to curb its losses to Rs 222 crore, against Rs 392 crore from the same period a year ago.
Source:Financialexpress.com