JP Morgan, Macquarie bullish on Paytm, HDFC Bank shares; see up to 62% upside, check new TPs

Global brokerage firms JP Morgan and Macquarie have largely remained bullish on shares of HDFC Bank and One 97 Communications Ltd (Paytm). JP Morgan though slashed target price of Paytm shares, Macquarie says HDFC Bank appears all set for an upward rally. Shares of HDFC Bank closed at Rs 1377.60 apiece, while Paytm closed at 614.60 per share on Monday.  

One 97 Communications Ltd (Paytm) 

JP Morgan slashed the target price of Paytm and maintained an overweight rating on the counter with a new target price of Rs 1000 per share. The previous target set by the global brokerage was Rs 1200. It was of the view that sales growth and contributions from profit are moving in right direction and still the scrip has lot to offer. " Indirect cost control is also seeming to be helping EBIDTA breakeven," it said.  

Paytm had reported a widening of its consolidated loss to Rs 761.4 crore for the quarter ended March 2022.  

"The company posted a loss of Rs 441.8 crore in the same period a year ago. The losses, however, narrowed on a sequential basis. Its consolidated loss stood at Rs 778.4 crore in the quarter ended December 2021," Paytm had said in a regulatory filing.  

On Monday's closing price of Rs 614.60 per share, the upside on the new target of Rs 1000 translates into over 62%. As on June 6, the counter has corrected over 71% on upper band of the IPO price of Rs 2150 per share.  

HDFC Bank 

Macquarie has retained its outperform rating on HDFC Bank with target price of Rs 2005 per share, an upside of nearly 46% on Monday closing price of Rs 1377.60 per share. It said that though merger factor has been priced in but the share is ready to rally now. It was of the view that private lender has already underperformed MSCI index by 15%, making it an attractive bet.

HDFC Bank standalone net profit jumped 22.8 per cent to Rs 10,055.2 crore for the quarter ended March 31, 2022, against Rs 8,186.5 crore in the year-ago period. The net profit jumped 18.8% for the year ended March 31, 2022 to Rs 36,961.3 crore.