Shares of One 97 Communications, the parent company of Paytm, surged 3.4% to ₹1,325 apiece on Friday, November 28, hitting the day’s high of ₹1,336 apiece as investor sentiment improved after global brokerage firm Goldman Sachs issued an upbeat outlook on the company.
Goldman Sachs turned bullish on Paytm, upgrading its rating on the counter to ‘Buy’ from ‘Neutral’ and sharply raising its 12-month target price by 123% to ₹1,570 apiece from the previous ₹705 apiece.
In its more bullish outlook, the brokerage sees the stock price reaching ₹1,870 per share, while in a blue-sky scenario, it anticipates the stock could soar to ₹2,320 apiece, representing an upside of 79% from its latest closing price.
The brokerage said the regulatory environment, previously a major drag on the stock, is now incrementally improving, which it expects will support early signs of recovery in Paytm’s payments market share, strengthen earnings visibility, and enable the relaunch of key products.
Goldman Sachs highlighted that Paytm has endured three major regulatory hurdles in recent years: the online merchant onboarding ban in 2022, the RBI’s curbs on unsecured lending in 2023, and the ban on Paytm Payments Bank (PPBL) in 2024. Goldman believes these issues are now largely behind, with the company beginning to regain market share.
It further noted that Paytm’s UPI and overall payments market share have already started recovering in recent quarters. It expects this momentum to continue following the recent online payment aggregator authorization and anticipates Paytm will step up customer acquisition efforts.
Overall, the brokerage expects 20–25% annual revenue growth for Paytm over the next 2–3 years. On the operating front, it has raised its FY26–30 EBITDA estimates by at least 45%, resulting in sizable EPS upgrades.
The upward revisions are driven by three factors: sustained improvement in both direct and indirect cost control, reduced ESOP expenses after the founder forgone his grants, and strong traction in high-margin devices and the merchant lending business.
Paytm share price recovers 327% from record lows
Once battered after its IPO, the stock has staged a dramatic turnaround, consistently delivering strong monthly performances that have brought relief to early investors and more than tripled the money for those who entered the stock in the second half of last year.
The company’s improved financial performance, driven by a sharper focus on its core business, cost-cutting measures, and the closure of non-core segments such as ticketing, has been well received by the Street.
After plunging to an all-time low of ₹310 apiece in May 2024, the stock staged a strong recovery in the subsequent months and has managed to sustain that momentum to date, gaining 327%.
Over the last 18 months, Paytm shares have ended 15 months in the green, including a nearly 18% jump in July, reflecting consistent investor confidence and robust operational execution.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
