Paytm parent One97 shares climb 4.5% after Bernstein upgrade
Business
Paytm's parent company, One97 Communications, saw its shares climb 4.5% to ₹1,506 on Monday.
The rally came after brokerage Bernstein raised its target price for the stock from ₹1,500 to ₹2,200, a 52% potential upside and the first time any analyst has set a target above Paytm's IPO price of ₹2,150 since 2021.
Paytm could add ₹22B via MDR
Bernstein stuck with its "Outperform" rating, pointing to new ways Paytm could make money, like a possible merchant fee (MDR) on UPI transactions starting FY28.
If this happens and government support continues for UPI monetization, Paytm could see better profit margins and add up to ₹22 billion in EBITDA by FY30.