Paytm Shares Continue Recovery: Brokerage Sees Over 30% Rally Ahead

Paytm Shares Continue Recovery: Brokerage Sees Over 30% Rally Ahead

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Paytm‘s share price continued to recover on Monday morning surging up 5% to hit the upper circuit.

What Happened: The shares of the fintech giant have been upbeat since the National Payments Corporation of India (NPCI) approved the company as a Third-Party Application Provider (TPAP) under the multi-bank model for UPI services.

The development also made analysts at Yes Securities optimistic about the stock’s future. The analysts upgraded the stock’s rating to “buy” for the first time since they started covering the stock. The brokerage previously had a “neutral” rating on the stock. The target price is set at ₹505 — around 36% upside from the stock’s last closing price of ₹370.


The domestic brokerage firm said that it is crucial to acknowledge the significance of the approval received by the company for its UPI business. Without this approval, Paytm’s UPI operations would have ceased entirely.

Previously, OCL conducted UPI transactions through Paytm (NS:PAYT) Payments Bank as its Payment Service Provider (PSP), utilizing a unique UPI handle with “@paytm.” However, with the transition to the multi-bank model, OCL has partnered with Axis Bank (NS:AXBK), HDFC Bank (NS:HDBK), SBI (NS:SBI), and YES Bank, ensuring the continuity of its UPI business.

Before the release of RBI FAQs, the payments giant faced limitations in marketing and communicating its position effectively. However, with clarity now available, the company is actively engaging in communication efforts to minimize client loss and aims to regain any clients who may have shifted to other app platforms, the analyst added.

Price Action: Paytm’s share price was up 4.94% upper circuit at ₹380 in the morning hours of trading on Monday.

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That’s interesting news about Paytm’s share price! It seems there’s some optimism surrounding the stock after a rough period. Here’s a quick recap based on what I remember:

  • Paytm’s recent struggles: The company’s share price took a significant hit earlier this year due to regulatory actions from the RBI against its subsidiary Paytm Payments Bank.
  • Signs of recovery: There have been indications of Paytm’s share price recovering in recent weeks, and this news suggests a brokerage firm believes the rise could continue.
  • Rally potential: The brokerage reportedly sees a possibility of Paytm’s share price rallying over 30% in the future.

It’s important to consider some additional factors:

  • Reasoning behind the brokerage’s optimism: Understanding why the brokerage is bullish on Paytm would provide more context for their prediction.
  • Overall market conditions: The broader stock market performance can also influence Paytm’s share price.
  • Long-term outlook: While a 30% rally sounds promising, analyzing Paytm’s fundamentals and future prospects is crucial for a more informed investment decision.

Remember, this is just a snapshot of the situation. Stay updated on Paytm’s financial news and market performance to make sound investment decisions.

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