Now Reading: Paytm shares rise 11% as brokerages lift targets
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Paytm shares rise 11% as brokerages lift targets
Paytm parent One97 Communications gained 11% this week to close at Rs 1,603, its biggest weekly rise in four months, LiveMint reports. Bernstein raised its target price to Rs 2,200 from Rs…
The Story in Brief
Paytm parent One97 Communications gained 11% this week to close at Rs 1,603, its biggest weekly rise in four months, LiveMint reports. Bernstein raised its target price to Rs 2,200 from Rs 1,500, while JM Financial lifted its target to Rs 1,950. Both brokerages cited possible earnings growth from monetising some UPI transactions.
Investor sentiment also improved after Parliament cleared an amendment that could allow a nominal merchant discount rate on selected UPI merchant payments, while consumer and person-to-person transactions remain free. Mutual funds raised their holding to 18% in the June quarter, from 16.6% in March, according to Trendlyne data. Paytm shares are up 70% from their March low.
The Indian Opinion
The easy narrative is that a possible UPI fee has already transformed Paytm’s business. That is premature. The fee has not been confirmed, and its impact depends on which transactions qualify and how merchants respond. Brokerages’ estimates range around a future revenue opportunity, not assured profit. Investors should watch the final MDR rules and Paytm’s reported payment margins, rather than treating target prices as outcomes. The first hard test will be whether earnings improve without slowing UPI usage.
Source: livemint.com
This story was synthesised by AI from the source linked above.
