Paytm Shares Price NSE India: Paytm Shares
The home brokerage company, YES Securities, has upgraded One97 Communications Limited (Paytm) for the first time after starting to cover the stock.
As of March 18, 2024, the One 97 Communications Ltd. (Paytm) share price on the National Stock Exchange (NSE) stands at ₹389.20, marking a 4.99% increase for the day. Providing further insight, the previous day’s closing price was ₹370.70, while the stock’s performance over the past year ranged from a high of ₹998.30 to a low of ₹318.05. The market capitalization of Paytm is reported at ₹235,547,900,000, with a trading volume of 2,583,164 shares for the current session on the NSE.
Key Points
One97 Communications Limited (Paytm) shares are in focus. YES Securities, the home brokerage company, has upgraded One97 Communications Limited (Paytm) for the first time after starting to cover the stock. Paytm’s shares hit a 5% upper circuit on Monday. Previously, on Friday, Paytm’s shares had risen by 5% and closed at Rs. 370.70. It is worth mentioning that after the RBI ordered FinTech players to shut down their Paytm Payments Bank (PPBL) on various regulations, there was a rapid selling in the stock.
In the last five days, the stock has dropped over 8%, and it’s down more than 58% in the past six months. Over the last year, it’s lost over 35%, and year-to-date, it’s down 43%. Recently, the National Payments Corporation of India (NPCI) approved OCL to join UPI as a TPAP in a multibank model, saving its UPI business from declining to zero. Now, OCL has teamed up with Axis Bank, HDFC Bank, SBI, and YES Bank, ensuring continuity in UPI transactions.
Despite some decline in UPI transaction value in February 2024, analysts believe client loss due to reputation damage will be controlled. OCL’s loan distribution is reset, but growth is expected through new lending partners. Although challenges lie ahead for its Wallet and BNPL businesses, OCL’s past successes demonstrate its competitive strength. OCL led the Wallet market in FY23 with $19.1 billion in GMV, and it dominated the BNPL market with a 44.2% share in FY23, according to brokerage reports.
YES Securities Analysis
YES Securities said that the reliance on wallet transactions for revenue has decreased, with wallet transactions contributing to about one-sixth of the revenue earlier. Out of the total revenue of 6,000 crores, only 1,000 crores came from wallet transactions. Therefore, there won’t be any significant impact on losses. YES Securities stated that obtaining NPCI approval for Paytm to participate in UPI as a Third-Party Payment Provider (TPPP) keeps its UPI business intact. Under the multi-bank model, Paytm has collaborated with Axis Bank, HDFC Bank, State Bank of India (SBI), and Yes Bank, and Paytm UPI handles have been transferred collectively to Yes Bank, ensuring smooth operations in UPI business.
What is the Share Price Target of Paytm?
YES security has a ‘buy’ rating on Paytm shares with a target price of ₹505. Meanwhile, Morgan has an ‘equal weight’ rating with a target price of ₹555. It’s worth noting that this share has dropped by about 63% from its 52-week high of ₹998.
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