Paytm Shares Touch Fresh 52-Week High at INR 1,063

SUMMARY

This marks the second consecutive session where the stock set a fresh 52-week high, having touched INR 1,012.85 during trading yesterday

By 11:18 AM Paytm’s market capitalisation stood at INR 66,255.92 Cr at the time of filing the story and as much as 11 Cr shares of the company traded hands by then

Paytm stocks have been on a bull run in the recent times as it closed above the INR 1,000 mark yesterday after it plunged to as much as INR 310.00 in May, following RBI’s regulatory clamp down

Shares of One97 Communications, the parent entity of Paytm, rallied over 5.5% to touch a fresh 52-week high at INR 1,063 apiece during the intraday trading session on the BSE today (December 17).

This marks the second consecutive session where the stock set a fresh 52-week high, having touched INR 1,012.85 during trading yesterday (December 17).

However, the stock pared some of the gains and was trading at INR 1039.50 apiece on the BSE at 11:17 AM.

By 11:18 AM Paytm’s market capitalisation stood at INR 66,255.92 Cr and as much as 11 Cr shares of the company traded hands by then.

It is pertinent to note that Paytm stocks have been on a bull run in the recent times as it closed above the INR 1,000 mark yesterday after it plunged to as much as INR 310.00 in May, following RBI’s regulatory clamp down.

Despite that, the stock on the year to date basis has yielded a 58.50% return at the previous close price, surpassing the 11.82% YTD yield generated by the benchmark BSE index.

Not to mention, certain developments in the recent past have also positively impacted this recovery in the share price. Be it the company receiving approval from the National Payments Corporation of India (NPCI) in October to onboard new UPI users or it reporting a profitable September quarter of the financial year 2024-25 (Q2 FY25).

The company posted a consolidated profit after tax (PAT) of INR 930 Cr in Q2 FY25 as against a loss of INR 292 Cr in the year-ago period. This return to the black was driven by Paytm’s selling of its movies and events ticketing business to foodtech major Zomato for INR 2,048 Cr in an all-cash deal.

Apart from this, the brokerage firms too are showing their optimism towards the company’s stock. For instance, Bernstein raised its price target from INR 750 to INR 1,000, citing Paytm’s improved financial health and innovative product offerings.

Amid the most recent developments, the fintech major’s subsidiary One97 Communications Singapore has sold its stock acquisition rights (SARs) in Japanese digital payments firm PayPay Corporation for INR 2,364 Cr to SoftBank’s Vision Fund 2.

The company’s board approved the sale of SARs as it has created significant value for the company. With this transaction, Paytm will see a boost in its cash reserves by INR 2,364 Cr within this month.

Paytm over the last few months has rolled out a slew of new features like UPI Lite Auto Top-Ups, UPI International in select international markets and UPI Statement download option, among others.