Paytm zooms 5% as brokerages anticipate strong revenue growth driven by loan and credit card distribution
Paytm Share Price NSE: The buying in the stock of the fintech platform was boosted on the back of brokerages positive outlook.
Paytm Share Price NSE: Share of One97 Communications (OCL), which owns the Paytm brand, jumped 5 per cent on Tuesday, November 29. The stock opened at Rs 476 apiece on NSE and rallied more than 5 per cent to trade at Rs 486 at 1:15 PM. In the previous trading session, the scrip had closed at Rs 461.50.
The buying in the stock of the fintech platform was boosted on the back of brokerages' positive outlook. They believe that Paytm's loan and credit card distribution will drive revenue growth. However, there could be some discomfort for the company in the process to scale up the lending business.
Brokerages are also of the view that cash burn would end in the next 4-6 quarters.
Citi has maintained a buy call on Paytm with a target price of Rs 1055.
CLSA has upgraded its rating to buy and set a price target of Rs 650.
Paytm stocks are under pressure for the past few weeks as the lock-in period ended. Last week, the Reserve Bank of India (RBI) paused the onboarding of online merchants by Paytm Payments Services. Reacting to the development, Paytm said that it will have no material impact on its business.
Paytm has tanked 25 per cent in the past 6 months while 64 per cent in 2022 so far.
Shares of digital payments and financial services firm are currently available at a discount of 70 per cent from the IPO issue price of Rs 2150.
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