Paytm shares jump 3.5% after Goldman Sachs upgrades rating to 'Buy', sees 21% upside

The shares of One97 Communications, the parent company of Paytm, jumped more than 3.5 percent on November 28 after international brokerage Goldman Sachs issued a bullish call for the stock.

The shares of the company hit an intraday high of Rs 1,338.80 apiece on Friday, extending gains for the third consecutive session.

 

Goldman Sachs on Paytm:

Goldman Sachs upgraded the rating for Paytm shares to 'Buy' from its earlier 'Neutral' rating, and hiked its target price by 100 percent to Rs 1,570 apiece from Rs 705 apiece earlier. The latest target price implies an upside potential of more than 21 percent from the stock's previous closing price.

The international brokerage said that the regulatory environment, which was earlier a key drag on the stock, is incrementally getting better. This is translating into recovery for Paytm's payments market share, better earnings visibility and relaunch of products, it added.

Goldman estimates a 20 percent revenue growth being sustained in the foreseeable future. Paytm's cost control has been a big positive surprise, it said while adding that it expects EBITDA margins to more than double over the next three-four years.

 

RBI grants final approval for PPSL to operate as payment aggregator:

In an exchange filing released in the post markets hours of November 26, Paytm announced that RBI granted the Certificate of Authorization (COA) to the firm's wholly-owned subsidiary Paytm Payments Services Limited (PPSL) to operate as a payment aggregator under the Payment and Settlement Systems Act, 2007.

The certificate will allow PPSL to resume onboarding merchants — a process that had been under RBI freeze since November 2022. According to the filing, the license will enable PPSL to continue offering payment aggregation services, and growth in this business segment will reflect in the consolidated financials of One 97 Communications Limited.

 

ICICI Securities on Paytm:

ICICI Securities recently hiked its target price for Paytm shares to Rs 1,450 apiece from Rs 1,240 apiece. The domestic brokerage said that it sees strong earnings growth potential driven by payment and loan distribution expansion, margin improvement through product upgrades and better UPI mix. "Paytm's plans for traction in postpaid, wallet and international segment complemented by its diverse presence across the payment ecosystem could support a net revenue of Rs 12,523 crore by FY28," said ICICI Securities.

 

Paytm share price history:

Paytm shares have gained more than 4 percent in the past five days, and nearly 56 percent in the past six months. The shares of the company are up over 34 percent in 2025 so far.

After hitting a 52-week low of Rs 651.50 on March 11 this year, the stock jumped a whopping 108 percent in less than eight months to hit a 52-week high of Rs 1,353.80 apiece on November 10. The stock has fallen a little over 1 percent since then.

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(With inputs from Reuters)

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