Paytm Shares Touch A Fresh 52-Week High At INR 951.90

SUMMARY

Paytm’s stock has ended in seven out of the last nine trading session and is up 42% on a year-to-date basis

The rally in Paytm share prices came a day after brokerage UBS raised its price target for the fintech major from INR 490 to INR 1,000

UBS expects Paytm to achieve an adjusted EBITDA break-even by Q4 FY25, driven by higher revenue and reduced costs

Shares of One97 Communications, the parent company of Paytm, extended gains for the third consecutive trading session and hit a new 52-week high at INR 951.90 apiece on the BSE today (November 29).

The stock climbed as much as 2.6% to touch a fresh 52-week high during the intraday trading today.

However, it shed all of its gains later and was trading 1.51% lower at INR 913.50 apiece on the BSE at 12:34 PM.

The stock has ended in green in seven out of the last nine trading sessions.

Paytm shares have rallied almost 42% on a year-to-date basis, outperforming benchmark equity index BSE Sensex, which has jumped a little over 10% during the same period.

At the time of writing this article, the market capitalisation of Paytm stood at INR 58,365.01 Cr (around $6.9 Bn).

The upswing in Paytm’s share price came a day after brokerage UBS raised its price target for the fintech company from INR 490 to INR 1,000, implying an upside potential of nearly 8% from the stock’s last close.

While maintaining its ‘neutral’ rating on the stock, it said that Paytm’s next leg of growth will be revenue-driven, as a large part of its cost optimisation has already occurred.

Analysts at UBS said that Paytm is likely to achieve an adjusted EBITDA break-even by the March quarter of the ongoing fiscal year (Q4 FY25), driven by higher revenue and declining costs.

Brokerage firm Bernstein is also bullish on Paytm. Earlier this month, the brokerage firm raised its price target for the company’s shares to INR 1,000 apiece from INR 750 a share earlier. It also reaffirmed its “outperform” rating on the stock.

For the quarter ended September 30, 2024 (Q2 FY25), the Vijay Shekhar Sharma-led company reported a profit after tax of INR 930 Cr as against a loss of INR 292 Cr in the year-ago period on account of the sale of its ticketing business Paytm Insider to Zomato for INR 2,048 Cr.

Recently, Paytm launched a new Unified Payments Interface (UPI) offering, UPI Lite, which allows users to set up automatic top-ups for daily payments under INR 500 that do not require a pin.

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