Paytm: Unveiling a Fintech Powerhouse in India's Payment Sector

Emkay Research's latest Internet Sector Report places Paytm at the forefront of India's merchant payments arena, hailing it as a significant challenger to Pine Labs. The report highlights Paytm's extensive reach, innovative solutions like QR payments, and its Soundbox device as key aspects of its market superiority.

With a BUY rating and a target price of Rs 1,500 per share, Emkay underscores Paytm's promising growth projections. The firm is expected to scale its RuPay credit card on UPI, expand Postpaid, and reinstate its digital wallet services, contributing to its profitability by FY28 through various earnings levers.

Paytm's financial services, including merchant lending, insurance, and wealth management, offer a significant growth runway. Emkay projects Paytm's revenue to grow at a 24% CAGR from FY25 to FY28, reaching a net profit of Rs 23.7 billion by FY28, driven by advances in digital credit services.