Early breakeven positive for Paytm, stock surges 6%: Should you buy?

Experts have 'buy' rating with price targets between Rs 730 and Rs 1,150

One97 Communications (Paytm) declared very encouraging results for October-December quarter of the 2022-23 financial year (Q3FY23, beating its own guidance in terms of going earnings before interest, tax, depreciation and amortisation or Ebitda-positive. According to the management, Paytm was expecting to achieve breakeven only in the Q2 of FY24 whereas it has managed this (if we exclude ESOP pay-outs) three quarters early. The results, and the absence of any UPI incentives implies that the company will book UPI incentives only in Q4. It is likely to easily over-achieve its Q4 projections for the top line. Margins also looked stable or