18 March 2024 – Following an upgrade from Yes Securities, Paytm’s shares jumped by 5% and reached the upper circuit early in Monday’s trading session. The brokerage company increased the target price for Paytm to Rs 505 per share, a significant rise from the previous Rs 350, and upgraded the recommendation to ‘Buy’ from ‘Neutral’. Paytm’s shares have now closed over the 5% barrier for the second straight day.
Yes Securities provided five main explanations for the rating increase, stressing, among other things, Paytm’s growing independence from the wallet industry. One 97 Communications, Paytm’s parent company, has reportedly lessened its reliance on the wallet business, which now only accounts for about one-sixth of the firm’s total income, according to Yes Securities.
Since Paytm Payments Bank (PPBL) houses the wallet business, the latest RBI ban would cause a minor drop in income. Paytm’s total income stream, which is valued at Rs 6,000 crore, is still substantial in spite of this setback. In addition, it was noted as a good development as Paytm was granted permission by the National Payments Corporation of India (NPCI) to take part in UPI as a Third-Party Application Provider (TPAP) under the multibank model. This permission prevents delays to Paytm’s UPI operations, which would have otherwise occurred.
Conclusion
Additionally, the research implies that Paytm has successfully handled customer loss caused by harm to its brand and misunderstandings in the real world.
