<p>Tuesday saw a strong increase in Paytm shares after an upgrade of its stock by brokerage company Yes Securities. At 11:40 am, Paytm’s shares on the Bombay Stock Exchange (BSE) increased 4.96 percent to Rs 408.50.</p>
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<p>The Paytm stock has closed the previous two trading sessions at the 5% upper circuit.</p>
<p><strong>Sure, an update to securities</strong><br />
Yes Securities has lifted the target price of Paytm to Rs 505 per share from the previous Rs 350 and improved the company’s rating from “neutral” to “buy.”</p>
<p>“We value OCL at 2.7 times FY25E P/S for an FY28-31E EPS CAGR of 78%,” the brokerage company said. In our projections, we haven’t included any recovery of OCL’s wallet business. We had anticipated a rather limited future for the loan distribution industry. Right now, the market is pricing in a situation that is far more dire.”</p>
<p>The upgrade was made possible, according to Yes Securities, by Paytm’s decreased reliance on its wallet business and the National Payments Corporation of India’s (NPCI) recent approval for Paytm to participate in UPI as a Third-Party Application Provider (TPAP) in the multibank model.</p>
<p>The brokerage emphasized that Paytm’s UPI services would continue as a result of this permission. Furthermore, Yes Securities observed that in the wake of the Reserve Bank of India’s action against Paytm Payments Bank Limited (PPBL), Paytm has successfully handled customer losses arising from harm to its brand and uncertainty on the ground.</p>
<p>Although the value of Paytm’s UPI transactions decreased by 14% reportedly in February 2024, corrected data shows a more moderate ~10% fall.</p>
<p><strong>Will this encouraging trend continue?</strong><br />
The fact that the RBI’s action against PPBL has not materially affected Paytm’s services since March 15 is another reason why investors are starting to restore faith in the company’s shares.</p>
<p>Even though the stock has dropped more than 37% since the year’s beginning, the digital payments company has recently seen positive advances.</p>
<p>Paytm’s stock has increased by more than 12 percent over the last five trading days and by about 13 and a half percent in a month.</p>
<p>As long as payments and other services provided by the digital payment companies continue to run smoothly, experts predict that Paytm’s share price will either increase or decrease over the course of the next several trading sessions.</p>
<p>It should be mentioned, however, that a number of brokerages have not yet updated their ratings for Paytm after the RBI’s move on PPBL. The Paytm stock’s future trajectory will be determined by the new ratings that these brokerage companies are expected to provide.</p>
Paytm shares increase for the third session in a row. Will this rally go on?
