Why Goldman Sachs Sees Paytm Shares Surging 33%

Paytm’s share price has speeled a comeback this year. The stock has surged over 76% this year and analysts at Goldman Sachs see the stock going further up.

The Paytm Analyst: The Manish Adukia-led team at Goldman Sachs India reiterated their “buy” call on the stock raising the price target to ₹1,250 from ₹1,200. The target indicates an around 34% upside from the stock’s last closing price of ₹933.10.

The Paytm Thesis: Analysts said that they continue to see Paytm becoming the most profitable company within the Indian internet sector. As per the research firm, the payments giant is projected to achieve a net income-positive status in FY25.

See Also: TCS Shares Dive As CEO Puts A Number On Growth—And It’s Low

The analysts also pointed out that despite its strong growth potential and positive outlook, Paytm is currently trading at a P/E (Price-to-Earnings) ratio of 37x for fiscal year 2026, which represents a 20% to 50% discount when compared to companies like Zomato and Nykaa. The analysts believe that this discount may not be justified, considering Paytm’s growth profile and its potential for profitability.

The company expects the tech giant to post a revenue growth of 30% for the September quarter with an EBITDA margin of 6.3%. The company is scheduled to post its results on Oct. 20.

Price Action: Paytm’s share price was up 0.52% to trade at ₹937.95 in the late hours of trading on Monday.

Read Next: This Tata Stock Has Surged 50% In 6 Months, But Analyst Sees 34% Fall Ahead

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: Analyst ColorEquitiesPrice TargetReiterationMarketsAnalyst RatingsGoldman SachsPaytm