Whenever I find a business which has big potential, I try to buy it with both my hands. PayTM was one of those business.
Back in 2024, because of RBI canceling PPBL license, people thought PayTM is going to shut down. Those with knowledge of it’s business knew, PPBL is just another arm.
Understanding of business is very much important. And that’s the reason I bought more confidently despite carnage into its stock price around ₹350.
People said it’ll be available at ₹197 (oversmart people tried to be funny by connecting thru its parents name One Ninty Seven).
If you’d have heard these claims, you’d have never made money like the funny people didn’t do.
PayTM was and is an household name.
Everyone from fruit vendors to five star hotels use it. The penetration was & is still increasing because of digital payments.
It’s an actual tech company.
Now everyone wants to have a piece of PayTM at 1 800 and want to buy it and I sold it (doesn’t mean it’ll not go high).
All I thought before booking profits in PayTM was that I think next 2-3 years earnings are factored in. I think at FY 28/29 earnings, it’s trading >50x earnings. Which doesn’t makes its cheap.
Also, I wanted to raise cash in portfolio by booking profits in this counter (doesn’t mean I’m expecting a crash as one subscriber thought the same by trying to unnecessarily read too much between the lines).
Always work on your independent thought process. If I think I’m right, even if the masses think I’m wrong, I’d always do what I want to do.
Success & failures are part and parcel of life and investing. Atleast, in case I fail, I’ll have nobody to blame for my failures apart from myself. And if I win, that’s the biggest kick I get in beating the smartest people of the world apart from the by product profits I make.
And most importantly, the patience and courage to hold on to quality business despite wild swings both ways.
That’s a summary of my takeaways from PayTM multibagger gains.
