Abhishek Gaur
27 Sept 2024
As per Cogencis data, the number of shares traded was over 1.82 Lakh at INR 691 per share. Earlier this week, brokerage firm Emkay Global upgraded the stock to ‘add’ from its earlier rating of ‘reduce’. Paytm stock closed the day 2.66% higher at INR 705.25 on the BSE on September 26.
Paytm, led by Vijay Shekhar Sharma, has seen a significant surge in its stock price. Shares closed above INR 700 for the first time in nearly eight months, driven by positive sentiment and heavy trading volumes.
The fintech major has been introducing new offerings and implementing cost-cutting measures to offset the impact of the Reserve Bank of India's (RBI) crackdown on its payments bank arm. The company has also announced plans to integrate artificial intelligence (AI) into its core payment business and apply for a payment aggregator license with RBI.
Despite these positive developments, Paytm continues to face challenges, including heavy losses and stagnant revenues post the RBI crackdown. The company reported a 134% year-on-year increase in losses in the first quarter of the financial year 2024-25. Revenue from operations declined 36% in the same period.
While Paytm's recent stock performance is encouraging, it remains to be seen if the company can sustain its momentum and overcome the challenges it faces. The fintech industry is highly competitive, and Paytm will need to continue to innovate and adapt to remain successful.
In conclusion, Paytm's stock surge is a positive sign for the company, but it is important to monitor its progress closely to assess its long-term prospects. The fintech major will need to address its financial challenges and capitalize on its recent positive developments to maintain its momentum and achieve sustainable growth. Source: INC42
