One 97 Communications Share Price

One 97 Communications Ltd. fundamental analysis

In this article, we will examine One 97 Communications Ltd., its business model, and industry fundamentals to help us decide if it would be a suitable investment for you.

One 97 communications limited

One97 Communications Ltd. is a multinational technology company headquartered in Noida, India. Vijay Shekhar Sharma established it in 2000.

The company’s subsidiaries and businesses enable it to provide financial solutions and digital payment systems for merchants and consumers across India. Furthermore, the organisation offers a comprehensive range of mobile advertising, merchant payments, and marketing. Some of its famous products and brands are:

• Paytm
• Paytm Mall
• Paytm Payments Bank
• Paytm Money
• Paytm Insurance
• Paytm First Games
• Paytm Smart Retail
• Paytm Insider

On November 8 2021, One97 Communications made history with India's largest-ever IPO, listed on Indian stock exchanges.

The company has received funding from various sources, including Sapphire Ventures, Ant Financial Services Group, Ratan Tata, MediaTek’s investment funds Mountain Capital, Japan’s SoftBank Group, and Warren Buffett’s Berkshire Hathaway. However, as of now, the current major shareholders include Ant Group with a 9.88% stake and Saif Partners with a 4.59% stake.

It also made several acquisitions, including MobiVite, a mobile marketing platform, and Plustx, a cross-messaging platform.

Is the fintech sector a goldmine investment?

India's Fintech sector is growing rapidly, making it a promising area for investors. This growth is motivated by various factors, such as the population, increased internet and smartphone penetration, and supportive government policies.

Moreover, the Indian Government has been pushing digitalisation and financial inclusion further accelerating its growth. Furthermore, during the COVID-19 pandemic, there has been a strong push towards online banking and digital payments which also gives more advantages to it.

One97 Communications Ltd, the parent company of Paytm, presents itself as a noteworthy investment opportunity due to its solid presence in the Indian Fintech market.

As of May 31, 2024, the Paytm share price was Rs 360.75. It offers a range of products and services including digital payments, e-commerce, and financial solutions.

Who are one 97 communications competitors in the fintech sector?

One97 Communications, the parent company of Paytm, works in a competitive environment and landscape within the Fintech sector. Some of its biggest rivals include:

• Info Edge (India)
• Infibeam Avenues Ltd.
• PB Fintech Ltd.
• MobiKwik

History of one 97 communications limited

One 97 Communications Limited has a significant history in India’s tech industry. Here’s a brief overview:

• Incorporation: One97 Communications Limited is multinational technology company incorporated on December 22, 2000. The company is headquartered in Noida, Uttar pradesh.
• Product range: The company offers a wide range of products and services mentioned in the above section. Besides, it also provides mobile advertising, marketing, and payments for merchants.
• Infrastructure: It has regional offices in Mumbai, Bengaluru, Pune, and Chennai. The company provides mobile advertising, marketing, and payments for merchants.
• Certifications: While specific certifications are not mentioned, the company is registered with 35 GST numbers in different states. It’s also listed on Indian stock exchanges.
• Awards and recognition: One97’s product Talk2Me was awarded the Best Innovative VAS Product at the ET Telecom Awards by The Economic Times. The company was also ranked #493 in the Deloitte Technology Fast 500 Asia Pacific list in 2012. It was awarded the Emerging Company of The Year at the 10th Annual Voice&Data Award 2009 for its contribution to the VAS space.

Company profile of one 97 communications limited

Pros:

• Almost debt-Free: The company is almost debt-free, with a very low debt-to-equity ratio of 0.0156.
• Positive stock performance: The stock of One97 Communications has seen a positive trend. On June 13, 2024, the stock gained 4.31%, outperforming the sector by 3.07%. It has also outperformed the Sensex in the short term.
• Outperformance of the sector: One 97 Communications’ stock has outperformed the sector by 3.07%. This outperformance indicates that the company is doing well compared to its peers.

Cons:

• Stock performance: The stock price has seen a significant drop from its IPO price. The IPO was priced at ₹2,150, but as of February 2024, the stock was trading at ₹487.05, which is a drop of over 77%. As of June 7, 2024, the 52-week low for the stock was ₹318.05.
• Financial health: The company reported a net loss of INR 5,496 million for the fourth quarter ended March 31, 2024, with a basic and diluted loss per share from continuing operations at INR 9.
• Negative market sentiment: The trading volume has seen erratic changes, which can affect investor confidence.
• Return on equity: The company has a negative ROE of -15.6%, reflecting more losses than profits over the past three years.

The finances

Here’s a summary of One 97 Communications Limited’s financial information as of June 2024:

Metric	Value
Market cap	Rs. 22,933 Cr.
Book value	Rs. 210 (Per share)
Dividend Yield	0.00 %
ROCE	-10.2 %
ROE	-10.7 %
Face Value	Rs. 1.00

Shareholding pattern of One 97 communications ltd.

As of now, the shareholding pattern of One 97 Communications Ltd is as follows:

• Promoters: Hold 0%
• Foreign Institutional Investors (FII): 60.4%
• Domestic Institutional Investors (DII): 6.9%
• Public: 32.8%

Peer multiple comparison

Below are some of the main competitors of One 97 Communications Ltd. and their corresponding financials:

Metric	Info Edge (India)	Infibeam Avenues Ltd.	PB Fintech Ltd.	MobiKwik (Unlisted)
P/E Ratio	129.46	53.39	801.68	-
P/B Ratio	2.35	2.44	9.14	-
Dividend Yield (Avg.)	0.38	0.16	0.00	-