PAYTM SHARES CROSS RS 700 FOR THE FIRST TIME SINCE JANUARY. MORE ROOM TO RISE?

Shares of One97 Communications Ltd, the parent company of Paytm, surged as much as 6% on Wednesday, surpassing the Rs 700 mark for the first time in seven months.

The stock jumped 5.84% to reach a high of Rs 703.35, marking a significant recovery of 126% from its 52-week low of Rs 310 on May 9.

The last time Paytm traded above Rs 700 was in late January when it closed at Rs 761.

The stock had faced pressure earlier in the year, largely due to the Reserve Bank of India's (RBI) restrictions on Paytm Payments Bank.

At Paytm's recent AGM, founder Vijay Shekhar Sharma announced the company's intention to reapply for the Payment Aggregator (PA) licence.

This followed the news in August that Paytm Payments Services Limited (PPSL), a subsidiary of One97 Communications, had received government approval for downstream investment from Paytm into PPSL.

Analysts remain bullish on the stock's future. Last month, Ventura Securities predicted that Paytm could more than double to Rs 1,170 over the next two years, with a bullish case target of Rs 1,444. Even in its bearish scenario, the brokerage estimated the stock could reach Rs 870.

Ventura Securities highlighted Paytm's strong foothold in digital payments and financial services, which positions the company to benefit from India's expanding digital economy.

Despite the regulatory issues surrounding Paytm Payments Bank, Ventura praised the company's technology as top-notch and its business model as solid.

Paytm's wide network of 40.7 million merchants and 78 million monthly transacting users creates a strong foundation for recurring revenue.

With UPI becoming the preferred digital payments option and Paytm's Soundbox and POS systems gaining traction, the company is expected to capitalize on the growth of digital transactions.

At around 3:20 pm, shares of Paytm were up 1.21% at Rs 672.45 on the Bombay Stock Exchange.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

2024-09-18T10:08:36Z dg43tfdfdgfd