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Mint
5 days ago
- Business
- Mint
Paytm share price gains for fifth straight session, crosses ₹1,000 for the first time in six months
Paytm share price in focus today: Shares of One 97 Communications, the parent company of Paytm, jumped nearly 3% in intraday trade on Wednesday, July 16, hitting the day's high of ₹ 1,014, crossing the ₹ 1,000 level for the first time in six months. Today's rally also marked the fifth consecutive session of gains for the stock, taking its total rise to 9% so far in July. The stock was last seen around the ₹ 1,000 range in early January, but failed to sustain those levels and underwent a correction that lasted for two months before regaining momentum in early March, with the stock ending the following four months in green. The recent rally in Paytm shares has been fueled by reports of its possible inclusion in the MSCI Standard Index. According to brokerage firm Motilal Oswal, there is a high probability that Paytm may be upgraded from the MSCI Smallcap Index to the Standard Index in the upcoming MSCI rebalancing in August. If that happens, Motilal Oswal estimates the stock could see inflows worth $212 million following the index adjustments. The MSCI announcement is expected on August 8, with changes taking effect from August 26. After hitting an all-time low of ₹ 310 in May 2024, Paytm has staged a strong recovery, rallying 230% to end the year at ₹ 1,017, emerging as one of the best turnaround stocks of the year. This sharp rebound is largely attributed to the company's improving performance across multiple business segments, which has revived investor sentiment and boosted confidence in its long-term growth trajectory. Mutual funds have also shown growing confidence in the company's growth prospects. According to the latest shareholding data for Q1FY26, domestic mutual funds collectively held a 13.86% stake in Paytm, up from 13.11% in the March quarter. Among the notable domestic investors are Mirae Asset Mutual Fund, Motilal Oswal Mutual Fund, Nippon Mutual Fund, and Bandhan Mutual Fund. While mutual funds expanded their stake in the company, both FIIs and retail investors trimmed their holdings. FII ownership declined to 54.9% from 55.4% in the March quarter, while retail investors reduced their stake by 1.3% QoQ to 29.3%. Paytm is scheduled to announce its June quarter results on July 22 (Tuesday), and analysts expect a strong performance, possibly marking the company's first profitable quarter on a PAT basis. According to JM Financial, Payment Services revenue (excluding UPI incentives) is expected to grow 6% QoQ and 21% YoY, driven by a 27% YoY GMV increase. However, a rising share of lower-yielding UPI transactions may result in a lower take rate. The merchant subscriber base is projected to grow by approximately 7% QoQ (22% YoY) to reach 13.3 million, reflecting the company's focus on onboarding new merchants and reactivating dormant ones. Loan disbursals in Q1 are expected to grow by 8% QoQ (23% YoY), primarily led by merchant loans with a significantly lower mix of Default Loss Guarantee (DLG). However, personal loan disbursements may remain sluggish due to tighter norms around unsecured lending. Despite the impact of wage hikes, improved operating leverage is expected to lead to an adjusted EBITDA of ₹ 211 million. Most notably, JM Financial projects that Paytm may turn PAT positive, reporting a net profit of ₹ 189 million, aided by treasury income, which is likely to offset ESOP and depreciation/amortization expenses.
News18
5 days ago
- Business
- News18
Paytm Shares Cross Rs 1,000 For First Time In Six Months MSCI Buzz, Q1 Profit Hopes
Last Updated: Shares of One 97 Communications, the parent company of Paytm, surged nearly 3% in intraday trade on Wednesday; Key points for investors Paytm Share Price Today: Shares of One 97 Communications, the parent company of Paytm, surged nearly 3% in intraday trade on Wednesday, July 16, hitting a high of Rs 1,014. This marked the first time in six months that the stock crossed the Rs 1,000 level. The rally extended Paytm's winning streak to five consecutive sessions, pushing its total gains for July to 9%. The stock was last seen trading near the Rs 1,000 mark in early January but struggled to hold those levels, undergoing a two-month correction. Momentum picked up again in March, with the stock finishing the next four months in the green. The recent upward trend has been driven in part by speculation around Paytm's potential inclusion in the MSCI Standard Index. According to a note from Motilal Oswal, there is a strong possibility that Paytm may be upgraded from the MSCI Smallcap Index to the Standard Index during the upcoming August rebalancing. If the inclusion materializes, Motilal Oswal estimates that the stock could attract inflows worth $212 million. The MSCI announcement is expected on August 8, with the changes becoming effective on August 26. Paytm has staged a remarkable recovery since hitting an all-time low of Rs 310 in May 2024. The stock has rallied nearly 230%, closing the year at Rs 1,017, making it one of the most prominent turnaround stories in the market this year. The rally has been supported by improving fundamentals across business segments, helping to restore investor confidence and enhancing long-term growth visibility. Mutual funds have also demonstrated increased confidence in the company's prospects. As per the latest shareholding data for Q1FY26, domestic mutual funds collectively raised their stake in Paytm to 13.86%, up from 13.11% in the March quarter. Among the notable domestic investors are Mirae Asset Mutual Fund, Motilal Oswal Mutual Fund, Nippon Mutual Fund, and Bandhan Mutual Fund. While mutual funds expanded their holdings, foreign institutional investors (FIIs) and retail investors trimmed theirs. FII ownership declined slightly to 54.9% from 55.4%, while retail shareholding dropped by 1.3% quarter-on-quarter to 29.3%. Analysts Anticipate First PAT Profit in Q1 Results Paytm is scheduled to announce its June quarter results on July 22 (Tuesday), and analysts expect a strong showing—potentially marking the company's first profitable quarter on a profit-after-tax (PAT) basis. According to JM Financial, Payment Services revenue (excluding UPI incentives) is likely to grow 6% QoQ and 21% YoY, fueled by a 27% YoY increase in GMV. However, a rising share of low-margin UPI transactions may weigh on the take rate. The company's merchant subscriber base is projected to grow by 7% QoQ (22% YoY) to reach 13.3 million, reflecting ongoing efforts to onboard new merchants and reactivate dormant ones. Loan disbursements in Q1 are expected to rise by 8% QoQ (23% YoY), led primarily by merchant loans. The mix of Default Loss Guarantee (DLG) is expected to be significantly lower, while personal loan disbursements may remain muted due to stricter norms around unsecured lending. Despite wage hikes, Paytm is expected to benefit from improved operating leverage. JM Financial forecasts an adjusted EBITDA of Rs 211 million and a PAT of Rs 189 million, supported in part by treasury income that may offset costs related to ESOPs and depreciation/amortization. view comments First Published: July 16, 2025, 13:01 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
5 days ago
- Business
- Mint
Paytm share price gains for fifth straight session, crosses ₹1,000 for the first time in six months
Paytm share price in focus today: Shares of One 97 Communications, the parent company of Paytm, jumped nearly 3% in intraday trade on Wednesday, July 16, hitting the day's high of ₹ 1,014, crossing the ₹ 1,000 level for the first time in six months. Today's rally also marked the fifth consecutive session of gains for the stock, taking its total rise to 9% so far in July. The stock was last seen around the ₹ 1,000 range in early January, but failed to sustain those levels and underwent a correction that lasted for two months before regaining momentum in early March, with the stock ending the following four months in green. The recent rally in Paytm shares has been fueled by reports of its possible inclusion in the MSCI Standard Index. According to brokerage firm Motilal Oswal, there is a high probability that Paytm may be upgraded from the MSCI Smallcap Index to the Standard Index in the upcoming MSCI rebalancing in August. If that happens, Motilal Oswal estimates the stock could see inflows worth $212 million following the index adjustments. The MSCI announcement is expected on August 8, with changes taking effect from August 26. After hitting an all-time low of ₹ 310 in May 2024, Paytm has staged a strong recovery, rallying 230% to end the year at ₹ 1,017, emerging as one of the best turnaround stocks of the year. This sharp rebound is largely attributed to the company's improving performance across multiple business segments, which has revived investor sentiment and boosted confidence in its long-term growth trajectory. Mutual funds have also shown growing confidence in the company's growth prospects. According to the latest shareholding data for Q1FY26, domestic mutual funds collectively held a 13.86% stake in Paytm, up from 13.11% in the March quarter. Among the notable domestic investors are Mirae Asset Mutual Fund, Motilal Oswal Mutual Fund, Nippon Mutual Fund, and Bandhan Mutual Fund. While mutual funds expanded their stake in the company, both FIIs and retail investors trimmed their holdings. FII ownership declined to 54.9% from 55.4% in the March quarter, while retail investors reduced their stake by 1.3% QoQ to 29.3%. Paytm is scheduled to announce its June quarter results on July 22 (Tuesday), and analysts expect a strong performance, possibly marking the company's first profitable quarter on a PAT basis. According to JM Financial, Payment Services revenue (excluding UPI incentives) is expected to grow 6% QoQ and 21% YoY, driven by a 27% YoY GMV increase. However, a rising share of lower-yielding UPI transactions may result in a lower take rate. The merchant subscriber base is projected to grow by approximately 7% QoQ (22% YoY) to reach 13.3 million, reflecting the company's focus on onboarding new merchants and reactivating dormant ones. Loan disbursals in Q1 are expected to grow by 8% QoQ (23% YoY), primarily led by merchant loans with a significantly lower mix of Default Loss Guarantee (DLG). However, personal loan disbursements may remain sluggish due to tighter norms around unsecured lending. Despite the impact of wage hikes, improved operating leverage is expected to lead to an adjusted EBITDA of ₹ 211 million. Most notably, JM Financial projects that Paytm may turn PAT positive, reporting a net profit of ₹ 189 million, aided by treasury income, which is likely to offset ESOP and depreciation/amortization expenses. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
