Shares of One97 Communications, the parent company of Paytm, surged 6% in morning trade on November 22, reaching ₹893. The rally marks the fifth consecutive session of gains, driven by renewed optimism from global brokerage firm Bernstein.
Bernstein raised its target price for Paytm to ₹1,000 per share, up from ₹750, citing an improving narrative for the fintech player. The firm highlighted a potential shift in Paytm’s growth trajectory, projecting a significant upside in a bull-case scenario, including improved payment margins and lending from its balance sheet.
In Q2FY25, Paytm posted a net profit of ₹930 crore, compared to a loss of ₹290.5 crore a year ago, largely attributed to a one-time gain of ₹1,345 crore from the sale of its movie ticketing business to Zomato.
Further sentiment boost came from the National Payments Corporation of India’s (NPCI) approval for Paytm to onboard new UPI users after the lifting of an embargo imposed by the Reserve Bank of India.
