Paytm stock gave double return to investors after falling upside down

Paytm Share Price: The stock of One97 Communications, which runs a fitness company named Paytm, made a low of Rs 438.35 on 23 November 2022. But since this level, in the last seven months, the stock of Paytm has almost doubled to more than 93 per cent returns to its investors. And according to foreign brokerage house Bank of America Securities (Bofa Securities), then Paytm’s stock can give a further return of 20 percent from the current level.

The share of One97 Communications is currently trading at Rs.848. According to BOFO Securities, the stock can go up to the level of Rs 1020. The brokerage house says that the margin lending and soundbox business will continue to boom for the next 3 to 4 quarters. The brokerage house believes that there will be an improvement in the margin of Paytm.

BOFO Securities may have increased the target price of the stock but Paytm is still trading at 60 per cent discount to its IPO price. Paytm’s IPO came in November 2021. The company had brought IPO at a price of Rs 2150 per share. The stock fell by 80 per cent from the IPO price to Rs 438. Investors who invested in the IPO are still sitting on huge losses. But now slowly many brokerage houses are becoming bullish on Paytm.

Earlier, Citi has also raised the target price of Paytm stock to Rs 1,061. Citi has divided Paytm’s business into three verticals, valuing the payments business at Rs 454 per share. The financial services vertical was given a valuation of Rs 388 and the e-commerce business at Rs 85 per share.

One97 Communications presented better results in the January to March fourth quarter of 2022-23. The company’s loss for the quarter narrowed to Rs 168 crore, compared to Rs 761 crore a year ago and Rs 392 crore in its first quarter. The revenue of One97 Communications was also Rs 2335 crore with a jump of 52 per cent.

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