Paytm Stock Surges 2.89% to a 52-Week High of Rs 977 on BSE

Paytm's stock experienced a significant increase, rising 2.89% to reach a 52-week high of Rs 977 on the BSE, surpassing its previous closing price of Rs 949.50. The market capitalization of Paytm also saw an upswing, reaching Rs 61,476 crore on the BSE. A total of 1.32 lakh shares of the company were traded, resulting in a turnover of Rs 12.66 crore. Paytm's stock had previously touched a 52-week low of Rs 439.60 on November 24, 2022.

The stock has exhibited impressive performance, with a 37% increase over the past year and an 82.26% gain in 2023. Paytm's relative strength index (RSI) stands at 66, indicating that it is neither in the overbought nor the oversold territory. The stock has a beta of 1, reflecting average volatility over the year, and it is trading above various moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day.

Motilal Oswal, a financial services firm, anticipates a rise in Paytm's operating profitability, driven by an improvement in contribution margin and operating leverage in the September 2023 quarter. The company is expected to report robust revenue growth in Q2, and Motilal Oswal has assigned a buy rating to the stock with a target price of Rs 1,000, to be reviewed after Q2 earnings.

Bernstein, another brokerage firm, sees Paytm as well-positioned within the digital lending space due to its dominant payments platform and early entry into digital credit products. They expect strong growth in Paytm's lending business, predicting that it will turn profitable in FY25E and achieve an EPS of Rs 130 by FY30E. Bernstein has set a target price of Rs 1,100 for the stock.

YES Securities also has a positive view on the stock, with an 'add' rating and an increased target price of Rs 1,025. They anticipate robust sequential revenue growth for Paytm, driven by consistent loan disbursements and the addition of new devices, with a 14% QoQ increase in revenue from operations expected.

It's important to note that this information is provided for informational purposes only and should not be considered as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.