2 weeks Ago
Indian stock market today: Extending their winning streak for the second straight day, shares of One 97 Communications , the parent company of Paytm, rose nearly 3% in intraday trade on Wednesday, April 02, to hit a 6-week high of ₹ 822.70 apiece. The company, one of India’s leading payments and financial services distribution firms, has seen its shares rise steadily since March 11, gaining 25% in just 15 trading sessions (including today).
This surge has brought the stock closer to its February high of ₹ 823 apiece. Meanwhile, today’s jump in shares came after the company announced a partnership with the Greater Hyderabad Municipal Corporation (GHMC) to streamline property tax collection by deploying more than 400 Paytm All-In-One EDC devices (card machines). "The Paytm Card Machines deployed at multiple collection centers and for door-to-door collection allow citizens to pay their property tax through credit cards, debit cards, and Paytm pioneered QR codes, eliminating the need for cash, checks, or demand drafts.
The card machines are integrated with the GHMC app, enabling officials to check pending dues, collect payments instantly, and generate an on-the-spot confirmation slip," the company informed investors in today's regulatory filing. Meanwhile, on March 18, the company's wholly owned subsidiary, Paytm Money, has received approval from the market regulator to act as a research analyst. With this registration, Paytm Money can offer SEBI-compliant research services, including investment insights, research reports, and data-driven analysis.
Limited downside, strong upside: JM Financial retains 'Buy' on Paytm With Paytm steadily recovering from last year’s disruption, domestic brokerage firm JM Financial, in its latest report, anticipates three potential regulatory triggers over the coming fiscal year: the introduction of MDR on higher ticket/larger merchants’ UPI payments, the removal of the embargo on Paytm Payments Bank, and the grant of a Payment Aggregator (PA) or Payment Gateway (PG) license. "While even one of these coming to fruition could create significant upside opportunity, timing is trickier to predict. The company has already received a reprieve with NPCI allowing it to onboard UPI customers," said the brokerage.
At the current market price (CMP), which implies a 25x FY27E Adjusted EBITDA multiple, the brokerage sees limited downside but a sharp and substantial upside if either Trigger 1 or Trigger 2 materializes—potentially boosting its FY27 EBITDA estimate by approximately 35%. As a result, JM Financial reiterated its ‘Buy’ rating on the stock, setting a March 2026 target price of ₹ 1,010, with potential for further upside. However, the brokerage lowered its valuation multiple to 60x FY27E P/E, down from 70x, citing increased market volatility.
Technical Outlook: Experts see the stock nearing ₹ 1000 The company’s shares rebounded strongly in March, posting a 9.58% gain after declining 30% in the first two months of the current calendar year. Following this strong recovery, analysts expect the stock to maintain its momentum and potentially approach ₹ 1,000 per share.
Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, "Paytm is forming a bullish cup and handle pattern on the daily charts, supported by volume surges on up days and lower volumes on down days, indicating institutional accumulation. A close above 825 will confirm the breakout, setting up a move toward the last swing high of 998. The structure looks strong, and a breakout could trigger a sharp rally.
Traders should watch for sustained buying above 825 to confirm momentum." Disclaimer : The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint.
We advise investors to check with certified experts before taking any investment decisions..
