Paytm Share Price: After the listing of Paytm share in November 2021, it washed away most of the capital of the investors. But at the moment there is a bullish atmosphere in this stock. After reaching a record low, Paytm has gained 80 percent so far. The worst performing stock ever suddenly skyrocketed. At the time of writing today, Paytm shares were down 1.76 per cent at Rs 800. Fifty two week high of this stock was Rs. 844 while the 52-week low of Rs. There are 438. The issue price of Paytm’s share was Rs 2150 and this share is still far away from that level. On November 23, 2022, the stock touched a level of Rs 438 on the NSE, from where it has gained 80 per cent.
The stock jumped 13.5 per cent last week after global brokerage BofA Securities upgraded its stock from neutral to buy rating and raised its target price to Rs 885. Another brokerage CLSA has also given a target price of Rs 850 on the stock.
BofA analyst Sachin Salgaonkar said that the risk reward is turning positive for Paytm shares. The revenue momentum of the company has strengthened. The company’s operating leverage has improved and competition is limited. Paytm’s margin is expected to improve due to revenue mix.
Sonam Srivastava, Smallcase Manager and Founder, Right Research, said the company is burning huge amounts of cash and has a long way to go to turn profitable. However, operating metrics have improved. However, there are challenges in terms of intensity of competition, potential shift in digital payment fees and execution of financial services. This share may increase to 1285 in future.
What should investors do?
For the first time there is such a positive environment for Paytm. If investors are ready to take risk, then they should buy Paytm shares in the range of Rs 700 to Rs 750. The barrier for this stock can be seen in the range of Rs 840 to Rs 880. The stake of Paytm i.e. One 97 Communications has increased by 37 percent in the last one year, while since January 2023 till now this stake has increased by 50 percent. The stock has gained 51 per cent in the last six months. Paytm’s share has increased by 16 per cent in the last one month.