Paytm shares hit a fresh 52-week high of Rs 879.50 on NSE today. The fintech stock has risen 100% from its 52-week low of 438.35 hit in November last year. In the last one month, Paytm shares have jumped more than 22%
Paytm shares have risen around 64% in the last six months. However, it is still 56% far from its listing price and 61% from its issue price of Rs 2,150. The stock of Vijay Shekhar Sharma-led company has been rising on improving business prospects and recent 'buy' ratings by a host of brokerages with price targets of up to Rs 900
According to share market analysts, though Paytm's short-term as well as medium-term indicators are overbought, its long-term indicators are bullish. The stock may continue its positive momentum, and move towards the next pattern breakout point placed at around Rs 1,040. The uptrend is likely to remain intact as long as it holds the Rs 750 level, they said
CLSA on June 8 suggested a 'Buy' rating on Paytm stock with a target of Rs 850. "We use a long-term discounted earnings model to arrive at our target price. We factor in a risk-free rate of 7.25%, beta of 1.25 times, and risk-premium of 5.5%. Our terminal growth rate assumption is 5%, CLSA said
According to Prashanth Tapse, Senior VP (Research) at Mehta Equities, with ongoing impressive business growth and narrowing down its consolidated net loss, Paytm stock is expected to outperform in the next quarters. "Technically, the stock is at its immediate resistance near Rs 850 level, and with a weekly close above this level, we can expect Rs 880-900 levels in the short term," said Tapse
Last week, BofA Securities upgraded Paytm shares to 'Buy' with a target of Rs 855, up from Rs 780 earlier. BofA said that Paytm possesses potential for positive operational leverage and sits in a 'sweet spot' due to limited competition. It also highlighted other positive factors such as the growth of digitalisation driving payments and the company's robust cash balance
Pravesh Gour, Senior Technical Analyst at Swastika Investmart said that Paytm counter has formed a series of higher highs and higher lows, which is characteristic of an uptrend. This pattern indicates that buyers are willing to pay higher prices for the counter over time. On the upside, the stock can move towards Rs 900, while on the downside, a cluster of moving averages at around Rs 730 is a strong demand zone during any correction, the analyst said
Foreign brokerage Goldman Sachs has Paytm stock in its India Largecap Compounders basket as it believes that the stock may be a multibagger over the next three years. It sees 32% earnings CAGR and 31% sales CAGR for Paytm from 2023-25
Paytm reported a 51% jump in revenue from operations at Rs 2,334 crore for the March quarter while it brought down its net loss in the fourth quarter to Rs 168 crore from Rs 761 crore a year ago, and Rs 392 crore in December quarter
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