This comes two days after brokerage firm JM Financial predicted a bullish outlook for Paytm in the near future
The brokerage anticipated a huge likelihood of the inclusion of Paytm in the MSCI India Standard Index, about seven months after it was removed from the index
Paytm stocks have shown an upward trend in recent times. Last month on December 17, the stock attained a 52-week high mark of INR 1,063.00
Shares of Paytm
surged as much as 8% to reach INR 926.95 during the intraday trading session on the BSE today (January 16).
However, the shares shed gains later, trading 4.75% higher at INR 899 at 12:25 AM. The company’s market capitalisation stood at INR 57.314.03 Cr at the time above, with trading volume at 70 Lakh by then.
Paytm’s shares opened the day’s trading 3% higher at INR 883.80. The stock’s price ranged between INR 875 and INR 926.95 till 12:25 PM.
This comes two days after brokerage firm JM Financial predicted a bullish outlook for Paytm in the near future. Even yesterday (January 15), the stock climbed 4.86%.
The brokerage anticipated a huge likelihood of the inclusion of Paytm in the MSCI India Standard Index, about seven months after it was removed from the index.
Not to mention, Paytm lost its spot in the index amid a sharp downfall in its share price post the Reserve Bank of India’s (RBI) action on Paytm Payments Bank.
It is pertinent to note that Paytm stocks have shown an upward trend in recent times. Last month on December 17, the stock attained a 52-week high mark of INR 1,063.00.
At its previous closing price, the stock has surged by 176.85% from its 52-week low figure of INR 310.00 in May, again which was triggered by the RBI’s regulatory clampdown.
Despite that, the stock has yielded a 20.8% return in the last year, surpassing the 5.34% yearly yield generated by the benchmark BSE index for the same period.
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.
