Paytm share price hits 52-week high, up 185% in 6 months: More gains ahead?
Shares of One97 Communications Ltd, the parent company of Paytm, hit a 52-week high during Thursday’s trading session.
At 11:58 am, the stock was trading 2.93% higher at Rs 967.10 on the Bombay Stock Exchange, marking an 8.18% gain. Paytm has surged 185% over the past six months, recovering sharply after significant regulatory challenges earlier this year.
The rally comes even as benchmark indices experienced sharp declines, with Paytm gaining 27% in the past month alone. The stock’s recovery began after it plummeted to an all-time low of Rs 310 in May following restrictions imposed by the Reserve Bank of India on Paytm Payments Bank Ltd.
For the second quarter of FY25, Paytm posted a profit after tax (PAT) of Rs 930 crore, buoyed by a one-time exceptional gain of Rs 1,345 crore from the sale of its entertainment ticketing business. Revenue rose 10.5% quarter-on-quarter, reflecting improved operational performance.
FACTORS BEHIND PAYTM STOCK RALLY
Market experts attribute Paytm’s stock surge to resolved regulatory uncertainties, including approvals for foreign direct investment into its subsidiary and progress in securing a payment aggregator licence.
These developments have paved the way for Paytm to expand its merchant base and payment gateway business. Analysts note that the company’s focus on strengthening its lending operations, particularly by offering default loan guarantees, signals a strategic shift toward financial services.
The sale of its entertainment ticketing business has further allowed Paytm to narrow its focus on core areas like payments, loans, and financial product distribution.
MORE GAINS AHEAD?
From a technical standpoint, the stock’s consolidation between Rs 950 and Rs 880 indicates profit-booking at higher levels. Analysts suggest this pause is healthy following its sharp rally, with critical support at Rs 850 and upside targets of Rs 1,000 and Rs 1,100.
While momentum indicators like the Relative Strength Index remain positive, caution is advised near key resistance zones. Experts recommend long-term investors consider holding positions, as the company’s stable UPI market share and efforts to enhance average revenue per user (ARPU) could drive sustained growth.
However, short-term traders may look to book profits given potential downward pressure in the near term.