Paytm Shares Extend Rally To 3rd Day: Will Recovery Continue?

Paytm shares continued to rise on Friday even after the company refuted claims that Adani Group was going to buy a stake in the company. 

What Happened: Paytm shares hit the upper circuit for trading in the last 2 sessions after a report saying Adani Group was in talks with Paytm founder, Vijay Shekhar Sharma to acquire a stake in the company was refuted by both Adani Group and Paytm. 

See Also: Tata Motors Group CFO PB Balaji Sees Salary Jump 24% In FY24

The acquisition rumours came after Paytm in its March quarter results reported increased losses as the firm was affected by RBI curbs on the Paytm Payments Bank. The fintech company's net losses widened to ₹549.60 crore in the March quarter compared to ₹168.90 crore in the previous year. The company also said the impact of the RBI restrictions will fully play out in the June quarter as most of the affected products were active in Q4. 

Emkay Global, Motilal Oswal, Jefferies and Macquarie had given the company "reduce", "neutral", "hold" and "underperform" calls respectively. While Emkay said the company will face challenges in FY25, Jefferies sees business recovery in payments and commerce revenues with increased marketing expenditures and a gradual scale-up in lending. The average target price of these brokerages was ₹343.75. This implies around 12% downside from the current levels.

Price Action: Shares of Paytm jumped 1.88% to ₹384.50 on Friday morning session. 

Read Next: Jio Financial Services Launches JioFinance App In Beta Version

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.

Comments
Loading...
Posted In: EquitiesNewsMarketsMoversTrading IdeasPaytm

Loading...