Motilal Oswal Recommends Mid Cap Services Stock That Can Deliver 31% Return, Buy

Motilal Oswal is bullish on small cap stock operating in services sector, One 97 Communications Ltd. The analyst has assigned target price of Rs 865 apiece. Current market price of One 97 Communications Ltd is Rs 659.00 apiece on BSE with in intraday surge of 2.27%. If you buy the mid cap stock, you can fetch potential upside of 31%. According to the analyst, Paytm has reported a healthy traction in growing its GMV at 55% CAGR over FY 19-23. Check details below:

One 97 Communications Ltd Stock Performance & Return: Current market price of One 97 Communications Ltd is Rs 659.00 per share with intraday surge of 2.27% on BSE. Its 52-week high price is Rs 844.40 per share and 52-week low price is Rs 439.60 per share, respectively. The company has a market capitalisation of Rs 41,832.57 crore.

The stock witnessed a jump of 17% in last 1-month, 19% in last 3-months, and 23% YTD. It soared 3% in last 1-year.

One 97 Communications Ltd Valuation: According to Motilal Oswal, "We initiate coverage on the stock with a BUY rating. Paytm has achieved a breakeven in adjusted EBITDA during 3QFY23, well ahead of its guidance. We believe that a constant improvement in contribution margin and operating leverage will continue to drive its operating profitability. We thus estimate Paytm to achieve EBITDA break-even by FY25 with an EBITDA margin of 3.2%"

Key risks: Inability to secure the RBI approval for onboarding new customers in Payment Bank and securing license for Payment Aggregator that is critical for long- term growth.

One 97 Communications Ltd About: One 97 Communications Ltd (Paytm) is India's leading payments app and FinTech enterprise offering payments, financial services, commerce, and cloud services.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.