Shares of One97 Communications, the parent company of Paytm, saw a significant rise on Friday, nearing their yearly peak during early trade. The stock gained 4.6% to Rs 936.7/share before retracting some gains, closing at Rs 895.1 on Thursday on the National Stock Exchange (NSE). The company's market cap was nearly Rs 567.85 billion at 11:45 am.
The rally comes as Paytm's shares have seen a surge of about 115% from their yearly lows and an increase of over 75% so far in 2023. Despite these gains, the shares remain 57% below the issue price. Trading volumes on Friday witnessed around 3.45 lakh equity shares exchanged and Rs 326 crore traded on the NSE.
As investors await Q2 updates, market expectations for Paytm are high. Motilal Oswal has projected increasing profitability for the company with a target price of Rs 1,000. A domestic brokerage firm also anticipates substantial growth for Paytm in the second quarter of fiscal year 2024. According to its estimates, the Gross Merchandise Value (GMV) is expected to grow by 46%, loans disbursed are likely to increase by 135%, and revenue is predicted to reach Rs 2,600 crore.
These projections suggest a positive outlook for Paytm in the coming quarter, reflecting an optimistic market sentiment towards the company's performance and growth potential.
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