Shares of One 97 Communications Ltd (Paytm) climbed 13 per cent in Friday's trade, breaching Rs 600-mark. The scrip climbed 12.5 per cent to hit a high of Rs 623.80 on BSE. There were buy orders for 51,32,143 shares against sell orders. This was the second day of rally for the fintech major.
The stock was recently in news after the company received approval for downstream investment in a wholly-owned subsidiary Paytm Payments Services (PPSL). Paytm also showed intension to reapply for a payment aggregator (PA) licence. Analysts see diminishing regulatory concerns as positive for Paytm.
Morgan Stanley has maintained its 'Equal-Weight' on the Paytm stock with a target of Rs 500. The fresh development is seen as reducing regulatory overhang. Jefferies has maintained a "Hold' call with a target price of Rs 420. If granted approval from RBI, Paytm will be able to onboard new online merchants. The immediate business impact could be marginal, Jefferies reportedly said.
Ventura Securities has come out with a research note on One 97 Communications Ltd (Paytm) saying the stock can more than double to Rs 1,170 over the next 24 months, as per its base case assumptions. The domestic brokerage suggested a target price of Rs 1,444 per share in its bullish case scenario, which hints at a nearly three-fold jump in the stock price. Even with its bear case assumptions, Ventura finds the stock worthy of Rs 870 level.