Paytm shares have experienced a tumultuous journey in the stock market since its initial listing. However, as the new year unfolded, Paytm’s share price began to show some signs of recovery. In fact, year to date, the stock has witnessed a remarkable surge, soaring over 45% in value.

The Investment: If you had invested ₹10,000 in Paytm six months ago on Dec. 8. 2022 — when the stock closed at ₹508.2 — you would have bought approximately 19 shares. With the current market price at around ₹770, your investment would now be worth approximately ₹15,154.40. That’s a substantial return of over 51% in just half a year.

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Background: Paytm has been in the news recently for several positive developments. The company’s Average Monthly Transacting Users (MTU) stood at 9.2 crore in the April-May period, up 24% from the 7.4 crore MTU it reported in the same period last year. The total merchant gross merchandise volume processed through its platform in the April-May period was ₹2.65 lakh crore, marking a year-over-year growth of 35%.

Paytm’s Q4 results showed a sharp narrowing in consolidated net loss to ₹167.5 crore, compared to a loss of ₹761.4 crore in Q4 of the previous year. The performance was aided by an increase in GMV, higher merchant subscription revenues, growth of loans disbursed, and full years' UPI incentives reported during the quarter.

The fintech giant’s share price surged over 7% on a single day to hit an intraday high of ₹785.95, following an upgrade to a “buy” rating by global research firm BofA Securities. The firm said that Paytm is in a sweet spot with limited competition and sees the risk-reward ratio in the stock leaning towards the positive.

Price Action: Paytm’s share price was up 5.87% to trade at ₹769.70 in the late hours of trading on Thursday.

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Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.

Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this story.