Shares of One97 Communications Ltd, the parent company of Paytm, rose by nearly 2% in early trading on November 21, following a bullish note from Bernstein. The brokerage firm maintained its “Outperform” rating on Paytm and revised its target price to ₹1,000, up from ₹750, implying a 23.1% upside from the current market price of ₹812.
Bernstein highlighted that the narrative around Paytm has shifted from survival concerns to assessing potential bull and bear case scenarios. In a bullish case, the firm sees significant improvement in payment margins and growth in lending, supported partly by Paytm’s robust balance sheet. This could result in a ~100% upside to base case EPS estimates.
However, the brokerage also outlined risks in a bearish scenario, where payment margins could face pressure, and loan disbursal growth may remain muted, leading to a potential 40% downside to base case estimates.
This positive update comes as Paytm continues to show resilience and innovation in the fintech space, with its stock gaining momentum among investors.
