Shares of fintech main Paytm (One 97 Communications) have surged 122% over the previous 12 months, pushed by sustained bullish momentum and enhancing investor sentiment. Regardless of the sturdy restoration, the inventory nonetheless trades 53% beneath its IPO problem value of Rs 2,150 – elevating the query: Can Paytm reclaim its IPO-era highs?

At the moment hovering round Rs 1,018, the inventory has proven indicators of a technical breakout, supported by a constant sample of upper highs and better lows (HH–HL) on the charts. Technical analysts imagine the upcoming June quarter outcomes, due immediately, July 22, might be a key set off for additional upside.

Technical outlook constructive

Drumil Vithlani, Technical Analysis Analyst at Bonanza Portfolio, stated Paytm is approaching a vital resistance zone of Rs 1,020–1,030, the place it had confronted sharp promoting strain in December 2024. “The inventory has been constantly forming a better highs–greater lows (HH–HL) construction, which signifies a sustained uptrend,” he famous.He suggested current holders to take care of a stop-loss at Rs 980 and proceed holding, offered the inventory sustains above the breakout zone with supportive volumes. “Merchants ought to undertake a wait-and-watch strategy forward of the earnings occasion.”

Hardik Matalia, Spinoff Analyst at Alternative Broking, stated Paytm is displaying sturdy bullish momentum after a consolidation part. “There’s a Cup and Deal with sample on the weekly chart and an Inverted Head and Shoulders on the month-to-month — each are bullish continuation setups that recommend potential for a transfer towards Rs 1,700,” he stated.

He additionally highlighted the inventory’s energy throughout timeframes: “Paytm is comfortably buying and selling above its 20-, 50-, 100-, and 200-day EMAs, and the RSI at 65.86 is trending upwards.” For brief-term merchants, Matalia suggests utilizing Rs 980 as help and Rs 940 as a stop-loss. A breakout above Rs 1,050 might supply momentum-based entry alternatives, he added. Lengthy-term buyers can maintain or accumulate extra so long as the inventory sustains above Rs 950.

Q1 earnings might be a turning level

Brokerages anticipate Paytm to report its first-ever revenue in Q1FY26, with projected PAT exceeding Rs 18.9 crore — in comparison with a internet loss in the identical quarter final 12 months. Income from operations is anticipated to rise 27% YoY, pushed by progress in funds and monetary providers.

YES Securities and JM Monetary imagine a robust restoration in mortgage disbursals and tighter management over oblique bills might help profitability. Nevertheless, margins might stay beneath strain as a consequence of rising cost processing prices and the absence of UPI incentives.

Can Paytm reclaim its IPO highs?

Whereas the current rally displays enhancing fundamentals and rising investor confidence, analysts stay cautious. “Reclaiming the IPO value of Rs 2,150 would require sustained earnings supply, readability on regulatory considerations, and enlargement in lending partnerships,” stated a fund supervisor at a home mutual fund.

For now, momentum is on Paytm’s facet. However whether or not it could possibly return to its IPO-era glory will rely upon the corporate’s means to show early profitability into sturdy progress—and rebuild belief with long-term buyers.

(Disclaimer: Suggestions, options, views, and opinions given by the specialists are their very own. These don’t characterize the views of The Financial Occasions)



Source link

Previous articleEx ICICI Financial institution CEO Chanda Kochhar held responsible of Rs 64-crore bribe in Rs 300-crore mortgage sanction to Videocon
Next articleDemystifying Investing: Monzo Migrates Funding and Pension Service to Seccl

LEAVE A REPLY

Please enter your comment!
Please enter your name here