On Wednesday, the third trading day of the week, the Indian stock market saw high volatility. During this time, investors showed strong interest in the shares of One97 Communications, the parent company of Paytm.
The stock rose nearly 10% during the session, reaching a high of ₹892.60. This sharp rise came after the company reported strong quarterly results.
However, the stock is still trading at a 60% discount compared to its IPO issue price of ₹2,150. The 52-week high and low of the stock are ₹1,063 and ₹310, respectively—both recorded last year.
How Were the March Quarter Results?
In the January–March quarter of the last financial year (2024–25), One97 Communications reduced its loss to ₹545 crore, down from ₹551 crore in the same period of FY 2023–24. However, its operating income fell by 15.7% to ₹1,911.5 crore in the March quarter.
Over the entire last financial year, the company’s loss dropped to ₹645.2 crore from ₹1,390.4 crore in FY 2023–24. Paytm’s annual operating income also declined by about 31%, falling to ₹6,900 crore from ₹9,977.8 crore the previous year.
Paytm stated that its UPI incentive revenue was lower this year due to a government decision. The company also mentioned that the industry expects the government to allow MDR (Merchant Discount Rate) on UPI payments for large merchants soon, which would help improve revenue.
What Do Experts Say?
Brokerage firm Jefferies has given Paytm a “buy” rating and increased its target price from ₹950 to ₹1,100. This suggests a potential gain of 59% from current levels. Similarly, Bernstein has rated the stock “outperform” with a target of ₹1,100.
Dolat Capital Markets believes the stock could reach ₹1,200. Meanwhile, Motilal Oswal has kept a neutral rating on the stock and set a target price of ₹870.