Cost 

of Equity Low High Notes

Selected Beta 1 1.1 See Re-levered Beta Section
(x) Country Market Risk Premium 6.40% 6.40% Source [5]
Adjusted Market Risk Premium 6.40% 7.04%

Risk-free Rate  7.00% 7.50% RBI 10 year Bond approximate range (10Yr Yld = 7.29%)
 Additional Risk Adjustments 0.38% 0.75% Size & Country Default Risk

Cost of Equity 13.78% 15.29%

3 Year Avg Effective Interest Exp 7.39%
Supporting data
Cost of Debt Low High
Selected Long-term Debt 6.70% 8.45% (INR in millions)
Tax Rate 17.00% 17.00% Interest Exp. interest_exp
Total Debt total_debt
Effective Inter
After-tax Cost of Debt 5.56% 7.01% est Rate

Average
Interest Rate
Calculate a Weighted Average Range

Cost Estimates
Cost of Equity 13.78% 15.29%
After-tax Cost of Debt 5.56% 7.01%

Weights Source: Company

Equity % of Capital 98.53% 98.53% Equity 137,125
Debt % of Capital 1.47% 1.47% Debt 2,042
Total Capital 139167
WACC Range 13.66% 15.17% Debt to Equity 0.0148915223

Selected WACC  14.41%

Cost of Equity Low High

Selected Beta 1 1.1
Adjusted Market Risk Premium 6.40% 7.10%
Risk-free Rate  7.00% 7.50%
 Additional Risk Adjustments 0.38% 0.75%
Cost of Equity 13.78% 15.35%
Cost of Debt Low High
Selected Long-term Debt 6.70% 8.45%
Tax Rate 17.00% 17.00%
After-tax Cost of Debt 5.56% 7.01%
Cost Estimates
Cost of Equity 13.78% 15.35%
After-tax Cost of Debt 5.56% 7.01%
Weights
Equity % of Capital 98.53% 98.53%
Debt % of Capital 1.47% 1.47%
WACC Range 13.66% 15.23%
Selected WACC  14.44%
e range (10Yr Yld = 7.29%)

Fiscal Year Ending
19-Mar 20-Mar 21-Mar 22-Mar
342 485 348 394
9,323 4,281 5,884 2,042

7.30% 7.10% 6.70% 8.45%

7.39%

0.985327
0.014673
Assumptions
Tax Rate 17%
Discount Rate 14.44%
Perpetural Growth R 13%
EV/EBITDA Mulltiple 0
Transaction Date 8/17/2021
Fiscal Year End 3/31/2022
Current Price 782.6
Shares Outstanding 648.56
Debt 2,042
Cash 13,790
Capex 6,653

Discounted Cash Fl Entry 2022 2023 2024 2025 2026

Date 8/17/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025 6/30/2026
Time Periods 0 1 2 3 4
Year Fraction 0.87 1.00 1.00 1.00 1.00
EBIT (22,974) (22,328) (12,263) 2,670 17,298
Less: Cash Taxes (3,906) (3,796) (2,085) 454 2,941
Plus: D&A 2,473 2,778 3,232 3,505 3,937
Less: Capex 6,653 4,363 4,588 4,816 4,528
Less: Changes in NWC 21,679 (5,882) (2,995) 590 5,444
Unlevered FCF (44,927) (14,235) (8,540) 315 8,322
(Entry)/Exit (495,816)
Transaction CF - (39,062) (14,235) (8,540) 315 8,322
Transaction CF (495,816) (39,062) (14,235) (8,540) 315 8,322

Intrinsic Value Market Value

NPV 290,562 Market Cap 507,564
Plus: Cash 13,790 Plus: Debt 2,042
Less: Debt 2,042 Less: Cash 13,790
Equity Value 302,310 Enterprise Value 495,816
Intrinsic Value 466.12
Equity Value/Share 782.60
Debt/EV 0.41%

Rate of Return
No. of shares

Exit Terminal Value

6/30/2026 Perpetural Growth 651,476
EV/EBITDA NA
Perpetural Growth 651,476

651,476
651,476
651,476

Market Value vs Intrinsic Value

Market Value 782.60
Target Price 466.12
Upside (316.48)
Target Price Upside -40.4%
Internal Rate of Return (IRR) 3.6%
Market Value vs Intrinsic Value DCF Relative Valuation (Trading)
EV/Sales (Multiple) 9.97x Low
Market Value 782.60 Multiple 1.7x
Target Price 205.69 Target Price 133
Upside (576.91) (649.16)
Target Price Upside -73.7% -82.9%
Internal Rate of Return (IRR) -10.3%

EV 495816 INR mm EV/Sales (Multiple)

Market Value vs Intrinsic Value (DCF) Relative Valuation (Trading)
Share Price 782.60 Low
Target Price 205.69 Multiple 1.7x
Upside (576.91) Target Price 133
Target Price Upside -73.7% Upside (649.16)
Internal Rate of Return (IRR) -10.3% Target Price Upsi -82.9%
lative Valuation (Trading) Relative Valuation (Transaction)
High Low High
4.4x 5.5x 7.2x
345 432 565
(437.22) (350.87) (217.43)
-55.9% -44.8% -27.8%

9.97x In INR
Valuation (Trading) Relative Valuation (Transaction)
High Low High
4.4x Multiple 5.5x 7.2x
345 Target Price 432 565
(437.22) Upside (350.87) (217.43)
-55.9% Target Price Upsi -44.8% -27.8%
 EV/Sales (X)
Company Name Mkt Cap Price 2022 2023 2024

One97 Communications Ltd 50,756 782.6 9.97 8.6 7.5

FSN E–Commerce Ventures Ltd 53,204 1,125.00 15.2 10.4 7.9
PB Fintech Ltd 44,051 980 35.5 24.8 17.5
Zomato Ltd 103,587 131.6 23.5 16.3 11.2
Info Edge (India) Ltd. 78,795 6,118.50 52.1 39.9 30.2
IRCTC Ltd 65,772 822.2 32.4 19.4 17.4
Nazara Technologies Ltd. 7,013 2,302.80 10.6 7.4 5.5
Easy Trip Planners Ltd. 6,048 556.7 41.8 32.2 24.7
Matrimony.Com Ltd. 2,289 1,000.20 4.8 4.3 3.8
Just Dial Ltd. 6,634 794 5.1 2.9 2.4
Paisalo Digital Ltd 4,143 979.6 17.3 13.6 11.8

Alibaba (China) 462,063 170 2.7 2.2 1.8

Ebay Inc (USA) 51,029 78.5 4.8 4.6 4.4
JD.com (China) 125,302 40.8 0.6 0.5 0.4
Zalando SE (Germany) 24,593 93.9 1.6 1.4 1.4
EverQuote Inc (USA) 391 13.4 1 0.9 0.8
Paymentus Holdings Inc (USA) 3,075 26.2 5.4 3.6 2.8
Paypal Holdings Inc (USA) 268,166 228.22 8.1 6.5 5
Payoneer Global Inc (USA) 2,636 7.79 4.8 3.8 3.5
Evercommerce Inc (USA) 3,934 20.14 7.4 6.1 5.5
Pagseguro Digital Ltd (Brazil) 11,345 34.46 4.7 3.9 3.3
Shift4 Payments Inc (USA) 5,025 60.62 8.2 6.6 6.2
Global Payments Inc (USA) 39,678 136.75 5.7 5.5 4.6
Afterpay Ltd (Australia) 25,235 86.93825 22.5 15 11.4
Zip Co Ltd (Australia) 2,617 4.58738 8.1 6.3 5.2
SoFi Technologies Inc (USA) 17,936 22.57 13.7 10 7.4
Nuvei Corp (USA) 17,086 109.96 18.2 13.9 11
Square Inc (USA) 109,498 237.38 5.4 4.3 3.3
 EV/EBITDA (X) P/E (X) RoE (%) RoIC
2022 2023 2024 2022 2023 2024 2022 2023 2024 2022

-21.19 -21.78 -42.37 -24 -20.1 -24.8 -8.7 -7.4 -7.7 -37.6
352.6 142.2 84 1,058.80 235.6 132.7 3.7 14.1 20 10.7
-198.4 -192.7 -226.6 -204.9 -193.3 -209.8 -3.8 -4.2 -4.1 -42.1
-98.3 -121.3 -687.6 -129.1 -262 543.4 -5 -2.6 1.2 0
162.4 123.5 98.5 182.3 134.2 108.1 8.2 10.3 11.5 13.2
83 49.2 45.5 109.3 66 60.4 32 39.3 32.6 37
68.2 45.3 31 177.9 103.5 67.6 5.7 8.9 12.1 10.7
97.9 72.5 53.7 73.4 54.4 40.3 37.3 37.2 37.2 42.3
22.6 17.2 16.1 40.5 29.1 28 18.2 21.5 18.8 23.2
50.4 13.3 11.5 42.3 24.4 21.3 5 7.9 8.3 10
23.4 18.2 15.6 51.8 38.7 33.1 9 10.8 11.4 14

13.2 10.3 8 18.6 15.7 12.8 16.5 16.3 16.4 21.5

12.6 12.1 11.9 18.3 17.2 16.8 23.9 24.6 22 28.9
25.6 16.4 10.4 39.6 25.5 14.7 8.9 12.4 20.5 13.9
24.9 19.8 18.5 68.4 51.1 34.7 11.1 12.9 15.7 16.1
19.3 13.4 8.7 -30.8 919.5 35.9 -14.5 0.4 8.6 -9.5
77.8 50.2 34.3 249 193.4 112.6 0.9 0.7 1.2 5.9
27.2 21.3 16.5 38.7 30.9 25.6 22.1 22.3 16.8 27.1
471.2 59.5 54.1 -170 -590.1 263.6 -49.5 -11.5 16.1 -44.5
34.8 26.4 24 85.7 53.2 48.3 5.3 8.5 8.5 10.3
13.9 10.8 7.7 27.2 18.5 14.1 18.7 22.6 27.1 23.7
21.7 17.3 15.8 55.5 38 30.4 16.2 19.4 22.1 21.2
11.9 11.4 9.3 14.4 12.7 11.7 9.9 10.6 9.4 14.9
300.9 114.3 62.4 NA 467.6 143 -0.1 4.7 11.8 4.9
-134.6 138.1 47.6 -34.2 -116.8 98.8 -15.9 -4.4 4.8 -10.9
88.8 42.9 27.4 -118.6 145.6 58.6 -3.6 2.8 6.3 1.4
41.9 31.2 23.9 56.5 43.5 29.6 13.9 15.6 20.9 18.9
87.4 57.3 42.5 90.8 64.3 48.1 29 32.3 39.2 34

15.34085
 RoIC (%) Sales EBITDA Margin (%) Net Margin (%)
2023 2024 2022 2023 2024 2022 2023 2024 2022 2023
Domestic Peers (fig in INR cr, unless specified)
-34.2 -29.1 4,974 5,743 6,631 -31.5 -19.4 -10.4 -26.2 -14.1
28.9 42.1 3,447 5,065 6,598 4.3 7.3 9.5 1.5 4.5
-36.9 -29.6 1,239 1,778 2,518 -17.9 -12.9 -7.7 -17.3 -12.8
2.4 6.2 3,976 5,758 8,391 -23.9 -13.4 -1.6 -20.2 -6.9
15.3 16.5 1,456 1,893 2,461 32.1 32.3 30.7 29.7 31
44.3 37.6 1,982 3,287 3,620 39 39.3 38.3 30.4 30.3
13.9 17.1 630 881 1,168 15.5 16.4 17.7 6.3 7.7
42.2 42.2 139 181 235 42.7 44.3 46.1 59.2 61.5
26.5 23.8 428 484 549 21.3 24.8 23.4 13.2 16.3
12.9 13.3 683 838 911 10.1 21.9 21 22.9 32.4
15.8 16.4 240 304 350 73.8 75 75.7 33.3 35.2
Global Peers (fig in USD mn, unless specified)
21.3 21.4 142,811 171,237 202,743 20.7 21.1 22 17.4 17.1
29.6 27 10,945 11,410 11,888 38.2 38.2 37.5 25.5 26
17.4 25.5 181,946 215,267 253,724 2.3 2.9 3.9 1.7 2.3
17.9 20.7 14,205 16,837 19,601 6.5 6.9 7.5 2.5 2.9
5.4 13.6 454 539 645 5.2 6.8 9.5 -2.8 0.1
5.7 6.2 472 589 742 6.9 7.1 8.3 2.6 2.7
27.3 21.8 31,669 38,140 45,510 29.8 30.7 30.4 21.9 22.8
-6.5 21.1 549 690 759 1 6.4 6.4 -2.8 -0.6
13.5 13.5 559 658 723 21.1 23 23 8.2 11.3
27.6 32.1 2,296 2,755 3,327 34 36.1 43.3 18.1 22.2
24.4 27.1 648 778 829 37.8 38.3 39.5 14 17
15.6 14.4 8,499 9,288 9,819 48.2 48.7 49.9 32.5 33.7
9.7 16.8 1,141 1,758 2,362 7.5 13.1 18.2 -0.1 3.1
0.6 9.8 493 688 905 -6 4.6 10.8 -15.5 -3.3
7.8 11.3 1,446 2,075 2,805 15.5 23.2 26.9 -10.5 5.9
20.6 25.9 918 1,176 1,483 43.5 44.6 46.2 32.9 33.4
37.3 44.2 19,990 25,203 33,518 6.2 7.4 7.8 6 6.8
 Net Margin (%)
2024
R cr, unless specified)
-10.1
6.1
-8.3
2.3
29.6
30.1
8.9
63.8
14.9
34.2
35.7
D mn, unless specified)
17.8
25.5
3.4
3.6
1.7
3.7
23
1.3
11.3
24.2
20
34.6
7.5
2.9
10.9
38.9
6.8
(Rs mn) FY19 FY20 FY21 FY22 FY23E
Table 1: P&L
Payment and financial services 16,955 19,068 21,092 38,577 44,540
Payment Service revenue 15,711 17,778 19,808 34,205 39,492
- Payment services to consumer 10,851 10,120 9,692 15,286 17,649
- Payment services to merchant 4,860 7,658 10,116 18,919 21,843
Financial Service revenue 1,244 1,290 1,284 4,372 5,048
Commerce and cloud services 15,365 11,188 6,932 11,048 12,756
-Commerce revenue 11,915 7,109 2,452 3,736 4,313
-Cloud revenue 3,450 4,079 4,480 7,312 8,442
Other operating revenue - 2,552 - 117 135
Revenue from operations 32,320 32,808 28,024 49,742 57,430
Payment processing charges 22,574 22,659 19,168 27,538 31,292
Promotional cashbacks and ince 27,937 9,592 2,357 3,781 6,214
Connectivity and content fees 1,071 1,561 1,819 2,259 2,711
Content, ticketing and FASTag 680 1,221 681 516 619
Logistic, deployment and collect 38 153 374 667 1,134
Contribution Profit -19,980 -2,378 3,625 14,981 28,395
Other Marketing & promotional 6,146 4,379 2,968 4,773 7,595
Employee benefits expense exc 7,016 9,532 10,724 16,094 20,275
Software, cloud and data centr 3,096 3,603 3,498 4,999 6,499
Other expense 5,877 4,791 2,983 4,292 4,508
Expenses 54,455 55,113 48,197 79,900 90,793
Adjusted EBITDA -42,115 -24,683 -16,548 -15,177 -4,968
ESOP Expense 1,546 1,661 1,125 8,225 17,799
EBITDA -43,661 -26,344 -17,673 -23,402 -22,767
Other income 3,477 2,599 3,844 2,901 3,331
D&A expense 1,116 1,745 1,785 2,473 2,893
EBIT -41,300 -25,490 -15,614 -22,974 -22,329
Finance costs 342 485 348 394 326
Share of profit / (loss) of assoc 93 -560 -740 -459 -436
Exceptional items -825 -3,047 -281 -24 0
Adj. EBIT -42,032 -29,097 -16,635 -23,457 -22,765
Tax Rate 0.15% 0.54% -0.16% -0.48% 17%
Tax Expense -65 -158 27 113 -3795.88
PAT -41,235 -25,332 -15,641 -23,087 -18,533
EPS -63.58 -39.06 -24.12 -35.60 -28.58
P/E -21.98

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Revenue 49742
EBITDA 23,402
Charges -27538 -64919
Cashbacks -3781
Content -2259
FASTag -516
Logistis -667
Marketing -4773
Emp. benefits -16094
IT expenses -4999
Others -4292
ESOP -8,225
 FY24E FY25E FY26E Rate

51,424 59,372 68548 78%

45,596 52,643 60780 69%
20,376 23,526 27162 31%
25,219 29,117 33618 38%
5,828 6,729 7769 9%
14,727 17,003 19631 22%
4,980 5,750 6639 8%
9,747 11,254 12993 15% 110,000
156 180 208 0% Revenue from operations EBITDA
90,000
66,307 76,555 88,388 15.46%
39,340 49,683 58,749 34% 70,000
7,395 9,289 10,918 5% 50,000
3,036 3,340 3,674 3%
30,000
712 798 877 1%
1,270 1,397 1,537 1% 10,000
40,786 56,730 73,681 19% -10,000
9,412 11,822 13,896 6%
-30,000
25,118 29,383 33,937 20%
7,279 8,006 8,807 6% -50,000
FY19 FY20 FY21 FY22 FY23E FY
5,030 5,519 6,070 5%
103,170 117,235 133,218 13.63%
3,922 16,050 28,851
15,625 11,977 9,680
-11,703 4,073 19,171
2,766 2,323 2,225
3,327 3,727 4,099
-12,264 2,669 17,297
565 594 542
-414 -394 -374
0 0 0
-12,678 2,275 16,923
17% 17% 17%
-2084.83 453.70 2940.47
-10,179 2,215 14,356
-15.69 3.42 22.14

ur version of Excel.

s workbook into a different file format will

ur version of Excel.

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venue from operations EBITDA

0 FY21 FY22 FY23E FY24E FY25E FY26E

Shareholding Pattern
Numbers in percentages

Dec-21 Mar-22 Jun-22

Shareholding Pattern Trend
94.51% 93.40%
FII 9.36% 4.42% 5.45% 89.58%
DII 1.06% 1.07% 1.15%
Public 89.58% 94.51% 93.40%

9.36%
4.42% 5.45%

Dec-21 Feb-22 Apr-22 Jun-22

FII DII Public

g Pattern Trend
94.51% 93.40%

2% 5.45%

Apr-22 Jun-22

DII Public
 Paytm Nifty
11/18/2021 1560.8 17764.8
11/22/2021 1359.6 17416.55
11/23/2021 1494.7 17503.35
11/24/2021 1752.45 17415.05 2000
11/25/2021 1798.75 17536.25
1800
11/26/2021 1782.6 17026.45
1600
11/29/2021 1736.45 17053.95
11/30/2021 1699.6 16983.2 1400
12/1/2021 1636.7 17166.9 1200
12/2/2021 1600.85 17401.65 1000
12/3/2021 1648.35 17196.7 800
12/6/2021 1604.45 16912.25
600
12/7/2021 1577.5 17176.7
400
12/8/2021 1553.4 17469.75
12/9/2021 1593.95 17516.85 200

12/10/2021 1567.55 17511.3 0

11/18/2021 1/18/2022 3/18/2022 5/18/2022 7/18/2022
12/13/2021 1555.05 17368.25
12/14/2021 1496.05 17324.9 Paytm Nifty
12/15/2021 1379.95 17221.4
12/16/2021 1399.35 17248.4
12/17/2021 1321 16985.2
12/20/2021 1304 16614.2
12/21/2021 1311.45 16770.85
12/22/2021 1342.2 16955.45
12/23/2021 1348.8 17072.6
12/24/2021 1369.55 17003.75
12/27/2021 1344.95 17086.25
12/28/2021 1353.5 17233.25
12/29/2021 1341.55 17213.6
12/30/2021 1327.95 17203.95
12/31/2021 1334.55 17354.05
1/3/2022 1339.8 17625.7
1/4/2022 1317.75 17805.25
1/5/2022 1288.35 17925.25
1/6/2022 1254.05 17745.9
1/7/2022 1231.6 17812.7
1/10/2022 1158.05 18003.3
1/11/2022 1119.65 18055.75
1/12/2022 1082.7 18212.35
1/13/2022 1031.8 18257.8
1/14/2022 1118.6 18255.75
1/17/2022 1105.3 18308.1
1/18/2022 1041.65 18113.05
1/19/2022 997.35 17938.4
1/20/2022 995.35 17757
1/21/2022 960.3 17617.15
1/24/2022 917.45 17149.1
1/25/2022 914.8 17277.95
1/27/2022 893.7 17110.15
1/28/2022 903.05 17101.95
1/31/2022 916.85 17339.85
2/1/2022 965.6 17576.85
2/2/2022 957.1 17780
2/3/2022 944.5 17560.2
2/4/2022 953.3 17516.3
2/7/2022 957.55 17213.6
2/8/2022 937.95 17266.75
2/9/2022 941.5 17463.8
2/10/2022 938.35 17605.85
2/11/2022 906.5 17374.75
2/14/2022 863.5 16842.8
2/15/2022 851.5 17352.45
2/16/2022 861.35 17322.2
2/17/2022 849.95 17304.6
2/18/2022 833.4 17276.3
2/21/2022 807.7 17206.65
2/22/2022 815.9 17092.2
2/23/2022 821.95 17063.25
2/24/2022 777.75 16247.95
2/25/2022 789.35 16658.4
2/28/2022 798.1 16793.9
3/2/2022 797.2 16605.95
3/3/2022 796.3 16498.05
3/4/2022 784.85 16245.35
3/7/2022 753.45 15863.15
3/8/2022 737.75 16013.45
3/9/2022 749.85 16345.35
3/10/2022 775.6 16594.9
3/11/2022 775.05 16630.45
3/14/2022 674.8 16871.3
3/15/2022 592.45 16663
3/16/2022 634.05 16975.35
3/17/2022 597.05 17287.05
3/21/2022 565.7 17117.6
3/22/2022 544 17315.5
3/23/2022 524.3 17245.65
3/24/2022 574.35 17222.75
3/25/2022 546 17153
3/28/2022 535.55 17222
3/29/2022 524.8 17325.3
3/30/2022 541.3 17498.25
3/31/2022 528.45 17464.75
4/1/2022 571.3 17670.45
4/4/2022 610.55 18053.4
4/5/2022 609.05 17957.4
4/6/2022 637.2 17807.65
4/7/2022 624.15 17639.55
4/8/2022 616.95 17784.35
4/11/2022 687.65 17674.95
4/12/2022 699.1 17530.3
4/13/2022 691.2 17475.65
4/18/2022 661.35 17173.65
4/19/2022 656.65 16958.65
4/20/2022 639.35 17136.55
4/21/2022 641.15 17392.6
4/22/2022 625.6 17171.95
4/25/2022 599.05 16953.95
4/26/2022 613.4 17200.8
4/27/2022 592.1 17038.4
4/28/2022 582.25 17245.05
4/29/2022 581.65 17102.55
5/2/2022 601.1 17069.1
5/4/2022 583.2 16677.6
5/5/2022 575.2 16682.65
5/6/2022 568 16411.25
5/9/2022 556.2 16301.85
5/10/2022 545.8 16240.05
5/11/2022 530.6 16167.1
5/12/2022 515.9 15808
5/13/2022 543.15 15782.15
5/16/2022 591.5 15842.3
5/17/2022 585.7 16259.3
5/18/2022 588.2 16240.3
5/19/2022 553.75 15809.4
5/20/2022 575.5 16266.15
5/23/2022 619.35 16214.7
5/24/2022 646.45 16125.15
5/25/2022 594.1 16025.8
5/26/2022 606 16170.15
5/27/2022 616.3 16352.45
5/30/2022 643.5 16661.4
5/31/2022 652.95 16584.55
6/1/2022 654.4 16522.75
6/2/2022 634.3 16628
 6/3/2022 623.45 16584.3
6/6/2022 614.5 16569.55
6/7/2022 617.8 16416.35
6/8/2022 615.3 16356.25
6/9/2022 623.15 16478.1
6/10/2022 600.5 16201.8
6/13/2022 582.25 15774.4
6/14/2022 606.5 15732.1
6/15/2022 617.1 15692.15
6/16/2022 613.95 15360.6
6/17/2022 630.15 15293.5
6/20/2022 644.35 15350.15
6/21/2022 638.5 15638.8
6/22/2022 621.7 15413.3
6/23/2022 628 15556.65
6/24/2022 648.05 15699.25
6/27/2022 701.35 15832.05
6/28/2022 707.1 15850.2
6/29/2022 705.65 15799.1
6/30/2022 675.7 15780.25
7/1/2022 657 15752.05
7/4/2022 644.75 15835.35
7/5/2022 656.25 15810.85
7/6/2022 690.75 15989.8
7/7/2022 690.75 16132.9
7/8/2022 698.75 16220.6
7/11/2022 709.6 16216
7/12/2022 697.1 16058.3
7/13/2022 707.75 15966.65
7/14/2022 718.35 15938.65
7/15/2022 709.35 16049.2
7/18/2022 731.05 16278.5
7/19/2022 737.4 16340.55
7/20/2022 736.65 16520.85
7/21/2022 745 16605.25
7/22/2022 743.05 16719.45
7/25/2022 758 16631
7/26/2022 698.9 16483.85
7/27/2022 713.8 16641.8
7/28/2022 715.7 16929.6
7/29/2022 706.8 17158.25
8/1/2022 744.35 17340.05
8/2/2022 755.7 17345.45
8/3/2022 804.55 17388.15
8/4/2022 809.05 17382
 8/5/2022 784.3 17397.5
8/8/2022 834.95 17525.1
8/10/2022 826.75 17534.75
8/11/2022 825.8 17659
8/12/2022 787.3 17698.15
8/16/2022 783.9 17825.25
 19000

18000

17000

16000

15000

14000

13000
2 5/18/2022 7/18/2022

m Nifty
Table 4: Key ratios

Growth ratios FY19 FY20 FY21 FY22 FY23E FY24E

Total revenue from operations 1.50% -14.60% 77.50% 45.10% 28.20%
Payment processing charges 0.40% -15.40% 43.70% 20.30% 18.80%
Marketing and promotional expenses -59.00% -61.90% 60.60% 61.40% 21.70%
Employee benefits expense 30.70% 5.90% 105.20% 56.60% 7.00%
Software, cloud and data centre expenses 16.40% -2.90% 42.90% 30.00% 12.00%
Other expense 0.80% -24.20% 32.00% 16.00% 12.00%
EBITDA -39.70% -32.90% 32.40% 20.80% -23.30%
Adjusted EBITDA -41.40% -33.00% -8.30% -30.90% -42.30%
EBIT -37.30% -30.70% 33.00% 20.50% -19.80%
PBT -37.60% -38.50% 46.40% 20.50% -19.00%
PAT -30.50% -42.20% 40.90% 19.40% -18.80%
Contribution Profit -88.10% -252.40% 313.30% 89.50% 43.60%

As a % of GMV
GMV (Rs bn) 2,292 3,032 4,033 8,520 12,855 17,001
Payment and financial services 0.74% 0.63% 0.52% 0.45% 0.45% 0.43%
- Payment services to consumers 0.47% 0.33% 0.24% 0.18% 0.16% 0.14%
- Payment services to merchants 0.21% 0.25% 0.25% 0.22% 0.19% 0.19%
- Others including financial services revenue 0.05% 0.04% 0.03% 0.05% 0.09% 0.10%
Revenue from operations 1.41% 1.08% 0.69% 0.58% 0.56% 0.54%

Payment processing charges 0.98% 0.75% 0.48% 0.32% 0.26% 0.23%

Marketing and promotional expenses 1.49% 0.46% 0.13% 0.10% 0.11% 0.10%

Contribution -0.87% -0.08% 0.09% 0.18% 0.22% 0.24%

EBITDA -1.90% -0.87% -0.44% -0.27% -0.22% -0.13%
Adjusted EBITDA -1.84% -0.81% -0.41% -0.18% -0.08% -0.04%

Margin
Contribution margin -61.80% -7.20% 12.90% 30.10% 39.30% 44.10%
EBITDA margin -135.10% -80.30% -63.10% -47.00% -39.20% -23.40%
Adjusted EBITDA margin -130.30% -75.20% -59.00% -30.50% -14.50% -6.50%
PAT margin -130.90% -89.70% -60.70% -48.20% -39.60% -25.10%
RoE 0.00% -42.30% -23.30% -23.20% -21.00% -18.30%

Per share ratios

EPS (Basic) -73 -47.2 -28.1 -36.9 -43.5 -35
EPS (Diluted) -73 -47.2 -28.1 -34.4 -41 -33.3
BVPS 100 134.7 108.4 203.6 188.2 177.3
EBITDA per share -76.3 -43.8 -29.3 -33.7 -40.7 -31.2
Op. revenue per share 56.4 54.5 46.5 71.6 103.9 133.1
Valuation ratios
Price / Sales 14.6 15.1 17.8 11.5 7.9 6.2
EV / EBITDA -11.36 -18.82 -28.06 -21.19 -21.78 -42.37
Price / Book 8.3 6.1 7.6 4.1 4.4 4.7
Price / Earnings -11.3 -17.5 -29.3 -24 -20.1 -24.8
EV/Sales 15.34 15.11 17.69 9.97 8.63 7.48
EV 495816.2
 FY25E FY26E
31.00% 23.30%
26.30% 18.20%
25.60% 17.50%
1.50% 5.50%
10.00% 10.00%
10.00% 10.00%
-54.00% -112.90%
-133.00% 448.60%
-45.20% -79.50%
-47.50% -90.60%
-46.70% -87.90%
39.10% 29.90%

23,096 29,907
0.42% 0.39%
0.13% 0.11%
0.18% 0.17%
0.11% 0.11%
0.52% 0.50%

0.22% 0.20%
0.09% 0.08%

0.25% 0.25%
-0.04% 0.00%
0.01% 0.04%

46.80% 49.30%
-8.20% 0.90%
1.60% 7.30%
-10.20% -1.00%
-10.10% -1.20%

-18.4 -2.2
-17.7 -2.1
176.8 188.6
-14.4 1.9
174.4 215
 4.7 3.8
121.71 25.86
4.7 4.4
-46.5 -384.1
6.48 5.61
Debt Service Coverage Ratio has not been computed as Earnings available for debt service are negative for currenty
Total Debt = Borrowings + Lease liabilities
Shareholder’s Equity = Total Equity
Earning available for Debt Service = Loss for the year + Depreciation and amortization expense + Finance costs + Pro
Debt Service = Interest paid + Repayment of term loan + Principal elements of lease payments
Total Sales = Revenue from operations
Total Purchase = Payment processing charges + Marketing and promotional expenses + Software, cloud and
Data centre expenses + Other expenses - Provision for advances - Loss allowance for financial assets - Trade receiva
Net Profit = Loss for the year
Working Capital = Current Assets - Current Liabilities
EBIT = Loss before exceptional items and tax + Finance costs - Other income
Capital employed = Total Equity - Intangible assets - Intangible assets under development + Borrowings + Lease
liabilities
 rvice are negative for currentyear and previous year.

expense + Finance costs + Property, plant and equipment and intangible assets written off + Loss/(profit) on sale of property, plant and eq

+ Software, cloud and

financial assets - Trade receivables/ advance written off - Goods and services tax expense off - Property, plant and equipment and intangib

ment + Borrowings + Lease

n sale of property, plant and equipment (net)

t and equipment and intangible assets written off - Exchange differences (net)
(Rs mn) FY19 FY20 FY21
Table 1: P&L
Payment and financial services 16,955 19,068 21,092
Payment Service revenue 15,711 17,778 19,808
- Payment services to consumers 10,851 10,120 9,692
- Payment services to merchants 4,860 7,658 10,116
Financial Service revenue 1,244 1,290 1,284
Commerce and cloud services 15,365 11,188 6,932
-Commerce revenue 11,915 7,109 2,452
-Cloud revenue 3,450 4,079 4,480
Other operating revenue - 2,552 -
Revenue from operations 32,320 32,808 28,024
Payment processing charges 22,574 22,659 19,168
Promotional cashbacks and incentives 27,937 9,592 2,357
Connectivity and content fees 1,071 1,561 1,819
Content, ticketing and FASTag expenses 680 1,221 681
Logistic, deployment and collection cost 38 153 374
13%
Contribution Profit -19,980 -2,378 3,625
Other Marketing & promotional expenses 6,146 4,379 2,968
Employee benefits expense excluding ESOP 7,016 9,532 10,724
Software, cloud and data centre expenses 3,096 3,603 3,498
Other expense 5,877 4,791 2,983
Expenses 54,455 55,113 48,197
Adjusted EBITDA -42,115 -24,683 -16,548
ESOP Expense 1,546 1,661 1,125
EBITDA -43,661 -26,344 -17,673
Other income 3,477 2,599 3,844
Depreciation and amortisation expense 1,116 1,745 1,785
EBIT -41,300 -25,490 -15,614
Finance costs 342 485 348
Share of profit / (loss) of associates / joint ventur 93 -560 -740
Exceptional items -825 -3,047 -281
Adj. EBIT -42,032 -29,097 -16,635
Tax Rate 0.15% 0.54% -0.16%
Tax Expense -65 -158 27
PAT -41,235.00 -25,332.00 -15,641.00
EPS -63.58 -39.06 -24.12
EBIT (1-tax rate) -34279 -21156.7 -12959.62
P/E

Table 2: Balance sheet

(Rs mn) FY19 FY20 FY21

Share Capital 575 604 605
Reserves &Surplus 56,674 80,448 64,743
Minority Interest 862 -140 -186
Networth 58,111 80,912 65,162
Non-current liabilities 2,338 5,459 4,799
Current liabilities 27,219 16,660 21,552
Total equity & liabilities 87,668 1,03,031 91,513
PP&E incl. right to use of assets and WIP 5,260 5,421 4,483
Goodwill 2,930 467 467
Investment in JV/Associate 2,462 3,230 2,317
Investments 1,051 2,276 341
Non-current Deposits 30 13,517 2,506
Other non-current assets 9,226 13,763 7,401
Total Non-current assets 20,959 38,674 17,515
Investments 24,979 31,894 1,472
Cash & cash equivalents 3,255 4,232 5,468
Bank balances other than cash and cash equivalents 1,358 1,170 23,296
Other current assets 37,117 27,061 43,762
Total current assets 66,709 64,357 73,998
Total Assets 87,668 1,03,031 91,513
Source: Company data, I-Sec research

Table 3: Cashflow statement

(Rs mn) FY19 FY20 FY21

Total comprehensive income net of tax -44,209 -29,847 -15,112
Other operating cashflows -550 6,081 -5,713
Cashflow from operations -44,759 -23,766 -20,825

Investing cashflow 19,110 -19,963 19,298

Fresh equity issuance (net of expenses 21,869 50,400 107

Other financing cashflows -764 1,199 -2,328
Cashflow from financing activities 21,105 51,599 -2,221

Net change in cashflows -4,544 7,870 -3,748

Source: Company data, I-Sec research

PP&E incl. right to use of assets and WIP 5,260 5,421 4,483
Change in PP&E 161 -938
Depreciation and amortisation expense 1,116 1,745 1,785

Capex 1,674 1,906 847

Capex-D&A 558 161 -938
EBIT (1-t) - (Capex - D&A) -34,837 -21,318 -12,022

Working Capital 39,490 47,697 52,446

Change in working capaital 3292 8,207 4,749

FCFF -38,129 -29,525 -16,771

Selected WACC  14.44%
Growth Rate 13%
Years from t

Value of the firm

 FY22 FY23E FY24E FY25E FY26E

38,577 57,728 73,160 95,900 1,18,007

34,205 46,073 55,819 70,847 84,169
15,286 21,194 24,281 29,402 33,247
18,919 24,880 31,538 41,446 50,922
4,372 11,654 17,341 25,053 33,838
11,048 14,448 19,379 25,335 31,430
3,736 5,730 7,118 8,691 10,180
7,312 8,718 12,261 16,644 21,249
117 20 - - -
49,742 57,430 66,307 76,555 88,388 15.46%
27,538 33,122 39,340 49,683 58,749
3,781 6,214 7,395 9,289 10,918
2,259 2,711 3,036 3,340 3,674
516 619 712 798 877
667 1,134 1,270 1,397 1,537
30% 22% 22% 22% 22%
14,981 28,395 40,786 56,730 73,681
4,773 7,595 9,412 11,822 13,896
16,094 20,275 25,118 29,383 33,937
4,999 6,499 7,279 8,006 8,807
4,292 4,508 5,030 5,519 6,070
79,900 90,792 103,170 117,235 133,217 13.63%
-15,177 -4,967 3,923 16,051 28,852
8,225 17,799 15,625 11,977 9,680
-23,402 -22,766 -11,702 4,074 19,172
2,901 3,331 2,766 2,323 2,225
2,473 2,893 3,327 3,727 4,099
-22,974 -22,328 -12,263 2,670 17,298
394 326 565 594 542
-459 -436 -414 -394 -374
-24 0 0 0 0
-23,457 -22,764 -12,677 2,276 16,924
-0.48% 17% 17% 17% 17%
113 -3795.7995026 -2084.7241761 453.84559618 2940.6738878
-23,087.00 -18,532.43 -10,178.36 2,215.83 14,357.41
-35.60 -28.57 -15.69 3.42 22.14
-19068.42 -18532.432865 -10178.359213 2215.8343813 14357.407805
-21.98

FY22 FY23E FY24E FY25E FY26E

649 655 662 669 675
1,40,867 1,30,124 1,22,583 1,22,221 1,30,411
-221 -278 -325 -349 -352
1,41,295 1,30,501 1,22,920 1,22,541 1,30,734
5,296 5,881 6,304 6,761 7,255
33,325 36,569 35,226 34,807 35,551
1,79,916 1,72,951 1,64,450 1,64,108 1,73,539
8,663 10,248 11,716 13,027 13,618
443 443 443 443 443
2,233 2,233 2,233 2,233 2,233
10,062 10,565 11,093 11,648 12,230
40,688 33,115 25,545 21,749 22,652
10,377 11,535 12,945 14,363 15,530
72,466 68,140 63,975 63,463 66,706
- 1,540 1,188 1,012 1,054
13,790 11,552 8,911 7,587 7,902
38,230 30,805 23,763 20,231 21,072
55,430 60,915 66,612 71,815 76,806
107450 104,812 100,474 100,645 106,833
1,79,916 1,72,951 1,64,450 1,64,108 1,73,539

FY22 FY23E FY24E FY25E FY26E

-25,330 -28,543 -23,166 -12,339 -1,491
12,967 10,888 11,160 7,733 10,866
-12,363 -17,655 -12,005 -4,606 9,375

-54,886 -4,907 -5,339 -5,624 -5,313

81,666 - - - -
-1,131 6,865 -260 1,401 -1,961
80,535 6,865 -260 1,401 -1,961

13,286 -15,697 -17,604 -8,829 2,101

8,663 10,248 11,716 13,027 13,618

4,180 1,585 1,468 1,311 591
2,473 2,778 3,120 3,505 3,937 12.32%

6,653 4,363 4,588 4,816 4,528

4,180 1,585 1,468 1,311 591
-23,248 -20,117 -11,646 905 13,766

74,125 68,243 65,248 65,838 71,282

21,679 -5,882 -2,995 590 5,444

-44,927 -14,235 -8,651 315 8,322

Market Cap Rs536bn/US$6.7bn Year to Mar (Rs mn) FY21
Bloomberg PAYTM IN Revenue from operations 28,024
Shares Outstanding (mn) 648.9 Contribution Profit 3,625
52-week Range (Rs) 2150/516 - Contribution margin (%) 12.9%
Free Float (%) 100 EBITDA -17,673
FII (%) 9.3 - EBITDA margin (%) -63.1%
Daily Volume (US$/'000) 45,601 PAT -17,010
Absolute Return 3m (%) 55.6 Diluted EPS (Rs) -28.1
Absolute Return 12m (%) NA GMV (Rs bn) 4,033
Sensex Return 3m (%) 10.6 Price / Sales (x) 17.8
Sensex Return 12m (%) 10.2 Price / Book (x) 7.6
FY22 FY24E FY26E
49,742 92,539 149,436
14,981 40,786 73,681
30.10% 44.10% 49.30%
-23,402 -21,677 1,292
-47.00% -23.40% 0.90%
-23,964 -23,217 -1,499
-34.4 -33.3 -2.1
8,520 17,001 29,907
11.5 6.2 3.8
4.1 4.7 4.4