Shares of Paytm parent One97 Communications rose 6 percent to Rs 893 in morning trade on November 22, extending its rally for the fifth trading session in a row after Bernstein recently dished out a positive call on the fintech player.
On November 22, international brokerage Bernstein reaffirmed its bullishness on Paytm as the narrative for the beleaguered fintech player changes from survival to optimism. Bernstein hiked its target price on Paytm to Rs 1,000 per share, up from Rs 750 earlier.
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In its bull case scenario, Bernstein expects Paytm to lend partly from its balance sheet and witness improved payment margins, projecting a 100 percent upside to its base case EPS estimates.
Conversely, in the bear case scenario, the brokerage anticipates pressure on payment margins and subdued loan disbursal growth, with a potential 40 percent downside risk to its base case estimates.
The sentiment has also stemmed from the National Payments Corporation of India's (NPCI) nod to on-board new UPI users, nearly nine months after the Reserve Bank of India (RBI) placed an embargo on the addition of new customers.
For the quarter ended September, the Vijay Shekhar Sharma-led firm clocked a net profit of Rs 930 crore in Q2FY25, compared to a net loss of Rs 290.5 crore during the same period last year. However, this turnaround was on account of a one-time gain of Rs 1,345 crore due to the sale of Paytm's movie ticketing business to Zomato.
At about 10 am, shares of the company were trading at Rs 888, higher by 5 percent from the last close on the NSE. Paytm shares have gained 56 percent in the last three months.
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