Paytm shares have jumped 32% from the 52-week low of Rs 439, hit on November 24, 2022. The fintech stock jumped 4% intraday on 21 March to hit a high of Rs 583.95 on BSE.
Paytm shares have outperformed benchmark Nifty 50 so far in 2023. While Paytm stock has jumped around 9% year-to-date, Nifty has tumbled around 6% in the same period.
In the last one year, Paytm shares have massively outperformed new-age peers like Nykaa and Zomato. While Paytm has gained around 2%, Nykaa and Zomato have shed 45% and 32% respectively.
Paytm share price erosion has been arrested in the last 1 year. However, the stock is still down over 73% from its IPO price of Rs 2,150 and 70% lower than its all-time high of Rs 1,961, hit on November 18, 2021.
In the quarter ended December 2022 (Q3FY23), Paytm trimmed its net loss by almost 50%, and also beat its own guidance, turning EBITDA-positive.
After Paytm trimmed its net losses by nearly half in the December 2022 quarter, a number of brokerages upgraded the stock. Several analysts now see Paytm stock giving substantial returns going ahead.
Brokerage Citi Research sees the Paytm share price appreciating to over Rs 1,000 in the next 1 year. The global brokerage firm has a ‘buy’ call on the stock with a target price of Rs 1,061, implying a potential upside of over 89% from March 20 closing price of Rs 559 apiece.
Bank of America (BoFA) Securities maintains a ‘Neutral’ rating on Paytm stock. Faster than expected market share gains, Paytm getting small finance bank license are the upside risk for the Paytm stock while material change in regulations, and overhang from large float being owned by private equity and Chinese investors are the key downside risks.
International brokerage Macquarie has retained its ‘outperform’ stance on Paytm shares with a target price of Rs 800 per share.
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