Zomato Vs Paytm: After poor investor response to Zomato and Paytm’s IPOs, both these stocks are recovering in 2023. This is behind their improved profitability, revenue growth and cost reduction in recent quarters. If you had to choose between two stocks for the long term, which stock would you choose? Let’s understand from the experts that Zomato and One 97 Communications (Paytm) have better growth opportunities in the long run.
Who paid how much in the last one year: Zomato shares have outperformed Paytm over the past one year. Zomato has jumped over 63 percent in a year, while Paytm has jumped just 38 percent. So far this year, Zomato has returned 76 percent, while Paytm has returned around 70 percent.
Who’s Dominating Who This Year: Talking about the performance over the last six months, Paytm has grown over 40 percent, while Zomato has grown 75.37 percent. Zomato this afternoon with a marginal drop of Rs. 106.40, while Paytm rose 3 percent to Rs. was at 902.
Zomato has posted positive returns in 8 out of 10 months this year so far. Between April and October, Zomato delivered a multibagger return of 109 percent. However, in January and March, there was a decrease of 16.10 and 4.67 percent respectively.
Paytm has also posted positive returns in 8 out of 10 months so far this year. It rose 2 percent in October, the third straight month of gains since August. It has increased by 9.4 percent in these 3 months. However, it declined by 7.7 percent in July and 0.2 percent in January. It was in the green for 5 consecutive months between February and June, growing over 63 percent during this period.
Zomato and Paytm’s 52-week highs and lows: Zomato is still 37 percent away from its November 16, 2021 high of ₹169. However, it recently touched its 52-week high of ₹115.10 on October 18, 2023. Currently trading at ₹106.45. It is up 162 percent from its record low of ₹40.60 on July 27, 2022. Paytm is more than 55 percent away from its record high of ₹1,955 on November 18, 2021. Last week, it touched a 52-week high of ₹998.30 on October 20, 2023. It is up 100 percent from its record low of ₹438.35 on November 23, 2022.
Financial health of Paytm and Zomato: The food aggregator reported a first-time consolidated net profit of ₹2 crore in the June quarter, compared to a net loss of ₹186 crore in the year-ago period. On the other hand, Paytm posted a consolidated net loss of ₹292 crore in Q2FY24. However, its losses fell by 49 per cent compared to ₹1,914 crore in the year-ago period.
What the experts say
Vineet Bolingkar, head of research at Ventura Securities, has chosen Zomato over Paytm. Bolingkar said, “Both Zomato and Paytm have ample growth opportunities due to India’s growing digital economy. Zomato’s recent acquisition of Blinkit facilitates entry into the instant grocery delivery market. This sector is mostly suitable for startups. Not owned by any big players. ”
In contrast, Paytm faces stiff competition from established players like Google Pay, Phone Pay and various banks. Jio Financial Services and Bajaj Finance are venturing into payment services. In such a situation, there is a possible threat to Paytm’s market share. Sonam Srivastava, founder and fund manager, Rite Research recommends Zomato for long-term investment over Zomato and Paytm.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own and not those of Live Hindustan. The information provided here is only about stock performance and is not investment advice. Investing in stock market is. Subject to risks and advice of your advisor before investing. take.)