As far as the bulls are concerned, which probably includes me, paytm’s path to profitability is similar to its main competitors, such as phonepe and google pay. They don’t hold a payments bank license, either. If one believes the competitors have a meaningful business, it shall apply also to paytm. If we acknowledge competitor’s business, but not paytm’s, I suspect it could be due to the aversion caused by price movements.
One may also like the idea of businesses like paytm having the ability to spawn other businesses relatively easily like broking, ecommerce, etc. Yes, criticism here is that they’re not best in anything.
Indeed, an investor should keep in mind the major uncertainty caused by RBI action, long-running losses, analyst reports, etc. There is serious risk here. OTOH, one may think that RBI is concerned about financial inclusion and respects the significant role of companies like paytm in this. So business continuity doubt is probably an extreme reaction.
(BTW these analyst reports waver all the time, and mostly short term focused, one or two FYs at most. I’m even surprised that they’re even respected by the market. It is a separate topic to discuss.)
These are the situations which present opportunity to earn money, or… lessons :–)
Disc: Invested. I always consider myself as a novice investor. No recommendations here. I welcome opposing views, which would help me keep my thinking unbiased.
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