Macro headwinds compelling growth moderation

Company
12 Dec 2023
5 Min read 
  • Paytm hosted an analyst concall to discuss its loan distribution business and steps taken to improve underwriting process and maintain asset quality.
  •  Paytm plans to focus on higher ticket size loans and de-focus on postpaid and personal loans below INR50k.
  •  Paytm will reduce disbursements in postpaid loans by 15-18% and expects a decline in total disbursement run rate.
  •  Paytm denies losing lending partners and aims to strengthen growth with three new relationships by 1QFY25.
  •  Asset quality metrics remain steady and the company expects steady growth in high-ticket personal and merchant loans.
  •  Motilal Oswal values Paytm at INR1,025 and maintains a BUY rating on the stock.
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