Now Reading: Paytm shares rally 33% in a month, analyst flags profit-booking trigger
-
01
Paytm shares rally 33% in a month, analyst flags profit-booking trigger
Paytm shares rally 33% in a month, analyst flags profit-booking trigger
Paytm shares have surged 33% in the past month, prompting mixed views from analysts on whether to book profits or hold for more gains. The stock has recovered from lows earlier this…
Paytm shares have surged 33% in the past month, prompting mixed views from analysts on whether to book profits or hold for more gains. The stock has recovered from lows earlier this year after the RBI clamped down on its payments bank unit. Revenue for the June quarter rose 28% year-on-year to Rs 2,448 crore, driven by higher payment volumes, growth in Soundbox merchant subscriptions, and financial services distribution.
WealthMills Securities' Kranthi Bathini advised investors who bought at lower levels to consider taking profits to recover their initial investment but retain the rest. Global brokerage Bernstein retained an 'Outperform' rating and raised its target to Rs 2,200, citing potential introduction of merchant discount rate (MDR) on UPI transactions from FY28, which could lift net payment margins. Technically, analyst AR Ramachandran flagged the stock as overbought on daily charts, with resistance at Rs 1,728 and a potential fall to Rs 1,538 if support at Rs 1,656 is broken.
Indian Opinion Analysis
Paytm's journey from regulatory turbulence to a renewed market rally has been remarkable. In early 2024, the RBI barred Paytm Payments Bank from onboarding new customers and curtailed its core banking functions, triggering a sharp selloff that drove the stock below Rs 400. The current 33% monthly surge reflects a broader recovery in sentiment, aided by the fintech's shift toward device-led merchant subscriptions and loan distribution. The crucial catalyst going forward is the proposed MDR on UPI. If implemented from FY28, it could generate meaningful revenue uplift for payment players like Paytm, but the policy remains under discussion. The key date to watch is the RBI's next monetary policy statement in December, which may signal further regulatory clarity on this front.
Source: businesstoday.in
This brief was synthesised by AI from the source linked above.
