Paytm shares zoomed 18% in fag-end trade; analysts see more upside potential in this multibagger

Shares of One 97 Communications, Paytm's parent, soared 18.47 per cent on Tuesday to hit an intraday high of Rs 771.95. The stock eventually settled 15.65 per cent up at Rs 753.60. At this price, it has delivered multibagger returns by rallying 143.10 per cent from its one-year low value of Rs 310, a level seen on May 9, 2024. Despite the mentioned spike, the scrip was down 24.51 per cent compared to its 52-week high of Rs 998.30, hit on August 20 last year.

Paytm Money, a wholly-owned subsidiary of One 97 Communications (which owns Paytm), today announced that it has launched a BSE futures and options (BSE F&O) trading service on its platform. "With trading charges kept at an affordable Rs 20 per trade order, along with applicable taxes, the platform remains one of the most cost-effective choices for retail investors in India," it stated.

Technically, analysts remained 'bullish' on the counter, suggesting a potential upside target of up to Rs 900 in the short term. With that being said, support could be seen at Rs 664, followed by Rs 650 level.

"The stock has given a strong breakout above Rs 700. One can hold it for upside targets of Rs 850-900 in the near term. Further, the counter has potential to hit Rs 1,000-plus levels in the next three months," market expert Raghvendra Singh told Business Today TV.

"Paytm is currently trading at Rs 750, demonstrating considerable strength. The stock is well-positioned for a potential rally in the near term, with an upside target of Rs 860 if the momentum continues. On the downside, it has a critical support level near Rs 650. A breach below this level could trigger a potential decline. Therefore, while the stock is poised for further gains, it is essential for it to maintain key support zones to sustain the current bullish trajectory. Paytm appears primed for a strong upward move in the coming sessions, but staying above the crucial support levels will be vital for maintaining the positive momentum," said Ameya Ranadive CMT CFTe, Sr Technical Analyst at StoxBox.

"Paytm stock price is bullish on daily charts with strong support at Rs 664. A daily close above resistance of Rs 756 could lead to an upside target of Rs 860 in the near term," said Sebi-registered research analyst AR Ramachandran.

The digital payments company sold its entertainment ticketing business to online food aggregator Zomato for Rs 2,048 crore in August this year.

The fintech firm has been under tremendous pressure since Reserve Bank of India (RBI) announced restrictions on Paytm Payments Bank's operations last year amid persistent non-compliance and continued material supervisory concerns.

With that being said, Paytm founder and CEO Vijay Shekhar Sharma has reaffirmed the company's commitment to reapplying for a payment aggregator (PA) licence from the Reserve Bank. "We will apply for the payment aggregator licence to the RBI in due course," Sharma said. This happened when Paytm Payments Services Ltd (PPSL), a subsidiary of Paytm, secured approval from the Centre to invest further in its payment services business.