On Wednesday, the Indian stock market saw significant volatility, with investors showing strong interest in One97 Communications, the parent company of Paytm.
The stock surged nearly 10%, hitting ₹892.60 during the session, following the company’s strong quarterly performance.
Despite the rise, the stock is still trading at a 60% discount compared to its IPO price of ₹2,150. The stock’s 52-week high and low were ₹1,063 and ₹310, respectively, both recorded last year.
March Quarter Results
In the January–March quarter of the 2024–25 financial year, One97 Communications reduced its loss to ₹545 crore, down from ₹551 crore in the same period of FY 2023–24. However, its operating income dropped 15.7% to ₹1,911.5 crore.
For the full financial year, the company’s loss fell to ₹645.2 crore from ₹1,390.4 crore in FY 2023–24.
Paytm’s operating income for the year also declined by about 31%, from ₹9,977.8 crore to ₹6,900 crore.
Paytm explained that lower UPI incentive revenue resulted from a government decision and mentioned that the industry anticipates the government will soon allow MDR (Merchant Discount Rate) on UPI payments for large merchants, which could boost revenue.
Expert Opinions
Brokerage firm Jefferies has given Paytm a “buy” rating, raising its target price from ₹950 to ₹1,100, suggesting a potential upside of 59% from current levels.
Bernstein also rated the stock “outperform” with a target of ₹1,100.
Dolat Capital Markets believes the stock could hit ₹1,200, while Motilal Oswal has a neutral rating and a target price of ₹870.
