Stock market today: After a revision in the circuit filter, One 97 Communications Ltd shares witnessed strong buying on Friday. Shares of the Paytm’s parent company today opened upside at ₹349 apiece on NSE and touched an intraday high of ₹381.30 per share. While climbing this intraday peak, Paytm’s share price also felt the 10 per cent upper circuit. Recently, the NSE revised the circuit filter of Paytm shares from 5 percent to 10 percent. While announcing its Q4FY24 results, the fintech company said that the company’s performance was affected by the temporary disruption.
Following the announcement of Paytm’s Q4 results in 2024, global brokerages Bernstein and Morgan Stanley have reported encouraging signs of stabilization and recovery in Paytm’s key business metrics. Bernstein’s report highlighted that Paytm’s Gross Merchandise Value (GMV) in April reached approximately 81% of January levels, indicating a positive momentum and a significant improvement from recent lows. Similarly, Morgan Stanley noted a moderation in GMV growth quarter-on-quarter, with a year-on-year increase of 30% compared to the previous 47%. These positive trends in key business metrics should instil confidence in the audience about Paytm’s future prospects.
“Excluding discontinued products, consumer payment GMV recovered to around 85% of January values, while merchant GMV reached 94%. Combined GMV now stands at 93% of January values, showcasing a clear improvement from the low point in March 2024,” Bernstein said in its report. The global brokerage firm also noted that lending volumes have picked up pace, with merchant loans recovering to 86% of January values following a complete shutdown in February. Although the recovery in consumer lending is slower, it still shows progress, with volumes at 75% of January values.
Morgan Stanley reported that, though at a slower pace, Paytm’s registered merchant base continued to increase, with 1.3 million new additions in the fourth fiscal quarter. “Device penetration also showed slight moderation, moving from 27% to 26%,” the brokerage said.
Paytm share price target
h ₹410 per share in the near term. Therefore, Paytm shareholders are advised to hold the scrip with a trailing stop loss at ₹350 for the short term target of ₹410. If this hurdle is broken, Paytm share price may reach ₹450 in the next 1-2 months.” This reaffirmation of the positive technical analysis should reassure the audience about the potential growth of Paytm’s stock.
On a suggestion to fresh investors, Ganesh Dongre said, “Fresh investors can buy the scrip at CMP and maintain buy-on-dips till the stock is above ₹350. They can buy Paytm shares for ₹410 and ₹450 per share target, maintaining stop loss at ₹350 apiece.”
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 07 Jun 2024, 02:05 PM IST
