Paytm shares hit near four-year high on brokerage upgrades, RBI approval: What lies ahead?

Paytm share price

The shares of One97 Communications, the parent company of Paytm, rose more than 3 percent to hit a fresh 52-week high of Rs 1,364.80 apiece on December 1. The stock has extended gains for the fourth consecutive session amid positive investor sentiment following bullish brokerage calls and RBI’s final approval for Payment Aggregator license.

The shares of the company rose to Rs 1,364.80 apiece, the highest level seen by the stock in nearly four years since December 29, 2021. The stock has now risen around 10 percent in four consecutive sessions so far.

Paytm Payments Services gets RBI's final approval 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.

Goldman Sachs upgrades Paytm's rating to 'Buy':

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 nearly 19 percent from the stock's previous closing price of Rs 1,320.6 apiece.

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.

ICICI Securities hikes target price for Paytm:

ICICI Securities hiked its target price for Paytm shares to Rs 1,450 apiece from Rs 1,240 apiece, while maintained its ‘Buy’ call. The latest target price implies an upside potential of nearly 10 percent from the stock’s closing price.

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 nearly 8 percent in the past five days, and more than 6 percent in the past one month. The stock has rallied around 47 percent in the past six months, and is up around 37 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 110 percent in less than nine months to hit a 52-week high of Rs 1,364.8 apiece today, December 1.

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