Paytm Shares Surge: Analyzing the Recent Upward Trend
Contents
Paytm stock price analysis
Paytm shares have been on an upward trend since June, following four months of decline. Last month, the stock rose over 11%, and in July, it has already gained over 18%.
On July 8, Paytm shares surged nearly 10% in intraday trade on the BSE, following a 6% rise in the previous session. Shares of One 97 Communications, Paytm’s parent company, opened at ₹437.55 and soared to ₹479.70 in a weak market.
By 1:45 pm, One 97 Communications stock was trading 9.07% higher at ₹476.20, while the Sensex was down 0.12% at 79,897.
From February to May, the stock suffered a 53% loss after the Reserve Bank of India (RBI) directed Paytm to close its payments bank arm, Paytm Payments Bank (PPBL), due to non-compliance with KYC norms. The stock hit its 52-week high of ₹998.30 on October 20 last year and plummeted to a 52-week low of ₹310 on May 9 this year.
Experts attribute the recent surge in Paytm shares to value buying after founder Vijay Shekhar Sharma expressed optimism about the company’s growth. At the 7th JITO Incubation and Innovation Fund (JIIF) Foundation Day event, Sharma compared Paytm to a recovering patient and emphasized the company’s potential, aiming to make it a $100 billion company.Paytm stock price analysis
Despite a decline in revenue to ₹2,399 crore and increased losses to ₹551 crore in Q4 FY23, analysts see potential in Paytm’s wide reach and revenue generation capabilities from merchants and consumers. Brokerage firm StoxBox highlights Paytm’s trend reversal patterns and believes the company is on track to achieve EBITDA breakeven in FY25.
Technical experts also note bullish signals in Paytm’s stock charts. Jigar S. Patel of Anand Rathi Share and Stock Brokers identified a bullish divergence on the weekly chart, indicating a potential trend reversal. Mandar Bhojane of Choice Broking observed a breakout from an inverted head-and-shoulders pattern, suggesting further gains.
Both analysts recommend buying Paytm stock within the ₹465-475 range, with targets of ₹530 and ₹565, and setting stop-loss levels at ₹439 and ₹390 respectively for risk management.
conclusion
Paytm shares have staged a notable recovery since June, rebounding strongly from previous declines. Recent gains of over 11% in June and more than 18% in July underscore renewed investor confidence and interest. The surge on July 8th, with a nearly 10% intraday increase, reflects market optimism despite broader economic challenges. Founder Vijay Shekhar Sharma’s positive outlook, likening Paytm’s recovery to that of a resilient patient, has bolstered sentiment.
Paytm stock price analysis
Despite setbacks like regulatory issues and financial losses, analysts are optimistic about Paytm’s market potential, citing its extensive consumer and merchant network. Technical indicators support this optimism, with bullish patterns signaling potential further upside. Investors are advised to consider buying opportunities within specified price ranges, implementing prudent risk management strategies to navigate market volatility effectively.Paytm stock price analysis
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