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Paytm share price today: Shares of One 97 Communications, the parent company of Paytm, surged by 5% on Wednesday, reaching an upper circuit level at Rs 395.25 on the Bombay Stock Exchange (BSE). Investors are optimistic as the regulatory crisis seems to be subsiding, resulting in a 21% increase in the stock price over the past four days.
As of 12:33 PM, the stock of One 97 Communications was trading up by Rs 395.25, representing a 4.99% increase on the BSE.
ET quoted Pranav Gundlapalle, an analyst at Bernstein, as saying, “Given the still depressed valuation and the removal of a major regulatory overhang, we see considerable upside and maintain our Outperform rating with a Target Price of Rs 600.” He clarified that the regulatory actions primarily affect Paytm Payments Bank (PPBL) and expects the company to successfully implement operational changes to reduce dependence on PPBL, with minimal long-term impact on the overall business.
As of 12:33 PM, the stock of One 97 Communications was trading up by Rs 395.25, representing a 4.99% increase on the BSE.
ET quoted Pranav Gundlapalle, an analyst at Bernstein, as saying, “Given the still depressed valuation and the removal of a major regulatory overhang, we see considerable upside and maintain our Outperform rating with a Target Price of Rs 600.” He clarified that the regulatory actions primarily affect Paytm Payments Bank (PPBL) and expects the company to successfully implement operational changes to reduce dependence on PPBL, with minimal long-term impact on the overall business.
As PPBL’s products like wallets and Fastags are expected to be discontinued, the brokerage predicts a 5% decrease in payment GMV and a potential worst-case impact of 4 bps on the payments processing margin, which currently stands at 9 bps. This assumes that there won’t be significant changes in the economics for Paytm by shifting to a non-PPBL partner.
“Our analysis of app traffic data indicates 10% reduction in traffic, and we expect limited damage to the long-term user/merchant base,” Gundlapalle further added.
Jefferies has shifted Paytm to its list of ‘Non Rated’ stocks, while Morgan Stanley has upheld an equal-weight rating with a target price of Rs 555.
After hitting an all-time low of Rs 318.35 last Friday morning, the stock has risen by approximately 24%.
Last week, the Reserve Bank of India (RBI) extended the ban on Paytm Payments Bank’s major banking and wallet operations by 15 days, except for nodal accounts. The regulator also clarified that services for merchants using Paytm QR codes, Paytm soundbox, or Paytm POS terminals will not be affected, even after mid-March 2024, if their linked accounts are with any bank other than PPBL.
“Our analysis of app traffic data indicates 10% reduction in traffic, and we expect limited damage to the long-term user/merchant base,” Gundlapalle further added.
Jefferies has shifted Paytm to its list of ‘Non Rated’ stocks, while Morgan Stanley has upheld an equal-weight rating with a target price of Rs 555.
After hitting an all-time low of Rs 318.35 last Friday morning, the stock has risen by approximately 24%.
Last week, the Reserve Bank of India (RBI) extended the ban on Paytm Payments Bank’s major banking and wallet operations by 15 days, except for nodal accounts. The regulator also clarified that services for merchants using Paytm QR codes, Paytm soundbox, or Paytm POS terminals will not be affected, even after mid-March 2024, if their linked accounts are with any bank other than PPBL.
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