Shares of fintech major Paytm jumped nearly 3% in early trading hours today (November 28) to hit a fresh 52-week high at INR 944.50 apiece on the BSE
The stock has climbed over 20% in the last seven trading sessions and rallied over 45% on a year-to-date basis
The upswing in Paytm share prices came after brokerage UBS reportedly raised its target price for the fintech giant to INR 1,000 from INR 490 earlier while maintaining a ‘neutral’ rating
Shares of fintech major Paytm
jumped nearly 3% in early trading hours today (November 28) to hit a fresh 52-week high at INR 944.50 apiece on the BSE.
The stock has climbed over 20% in the last seven trading sessions. On a year-to-date basis, it has rallied over 45%, significantly outperforming benchmark equity index Sensex, which has climbed 10% during the same period.
The upswing in Paytm share prices came after brokerage UBS reportedly raised its target price for the fintech giant to INR 1,000 from INR 490 earlier while maintaining a ‘neutral’ rating.
This would imply an upside potential of almost 9% from the stock’s previous close.
At the time of writing, the market capitalisation of Paytm stood at INR 60,336.95 Cr (around $7.1 Bn).
Earlier it was reported that brokerage Bernstein reaffirmed its ‘outperform’ rating on Paytm while raising the target price from INR 750 to INR 1,000.
It is pertinent to mention that Paytm shares hit their all-time low earlier this year. The plunge came after the Reserve Bank of India (RBI) barred its Paytm Payments Bank (PPBL) from accepting deposits, processing UPI payments and other services due to persistent non-compliances and material supervisory concerns.
However, winds of change have begun to blow for the fintech giant. Paytm returned to the black in the September quarter of the financial year 2024-25 (Q2 FY25), posting a profit after tax of INR 930 Cr as against a loss of INR 292 Cr in the year-ago period.
The turnaround came on the back of substantial gains made on the sale of its ticketing business Paytm Insider to Zomato for INR 2,048 Cr.
Further, it also managed to narrow its adjusted EBITDA (excluding ESOP cost) loss by 221% to INR 186 Cr in Q2 FY25 from a loss of INR 545 Cr in the corresponding quarter last year.
The buying interest in the stock has also surged after the fintech giant got the National Payment Corporation of India’s (NPCI’s) approval to onboard new customers for its UPI offering.
Paytm is among the few new-age tech stocks that are set to be added to the NSE’s futures and options (F/O) segment, effective November 29.
Recently, the fintech company rolled out UPI International in select overseas markets, including UAE, Singapore, France, Mauritius, Bhutan and Nepal, among others. Indians travelling abroad can avail of the feature to make UPI payments using the Paytm app.
