Paytm share price: Paytm Shares Soar 10% Today – Is This Just the Beginning of a Major Rally?

Paytm’s stock price surged by 9.87 percent, reaching a daily high of Rs 479.70. It was recently trading 8.44 percent higher at Rs 473.40. Despite this increase, the stock has declined by 26.73 percent year-to-date (YTD).

On Monday, shares of One 97 Communications Ltd, the parent company of Paytm, experienced a significant surge. The stock jumped 9.87 percent, reaching a daily high of Rs 479.70, and was last seen trading 8.44 percent higher at Rs 473.40. Despite this increase, the stock has fallen 26.73 percent year-to-date (YTD).

 

The recent surge in Paytm’s share price followed a statement from founder Vijay Shekhar Sharma, who shared his vision of transforming the company into a globally recognized $100 billion enterprise. “I have a personal ambition to make Paytm a $100 billion Indian company,” Sharma said at an event.

Sharma also reflected on the company’s journey, acknowledging that Paytm could have handled its responsibilities better. “We were maturing and moving towards full profitability, generating free cash, and so on. Professionally, we should have performed better and met our responsibilities more effectively. We learned our lesson,” he admitted.

Earlier this year, the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank’s operations due to ongoing non-compliance and significant supervisory concerns.

On the technical front, the stock traded above the 5-day, 10-day, 20-day, 30-day, 50-day, and 100-day simple moving averages (SMAs) but below the 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) was 73.53, indicating that it is overbought, as levels below 30 are considered oversold and values above 70 are seen as overbought.

The stock has a negative price-to-equity (P/E) ratio of 19 and a price-to-book (P/B) ratio of 1.70. Its earnings per share (EPS) are (-)17.54, with a return on equity of (-)8.97.

“Paytm’s stock has given a breakout. The trend remains strong, with the next target set at Rs 530,” according to analysts.