Paytm is being seen for the past few days. The stock has strengthened about 38 percent from its record low of Rs 511. The rally is expected in the future as well.
One 97 Communications Stock Price: Digital payment platform Paytm has been the worst return giving IPO in the last 1 year. However, for the past few days, there has been some rally in the stock. The stock has strengthened 38 percent from its record low. Experts say that the stock has made a strong base after a huge fall. On the other hand, there is a breakout of Symmetrical Triangular Pattern with good volume. In such a situation, a good rally can be seen in this ahead and the stock can also touch the price of Rs 990 in the coming days. At present, the stock is still trading at a discount of 67 per cent from its IPO price. This is the biggest drop in percentage in any IPO in the last one year.
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The breakout shown in the stock, now the rally will come!
Swastika Investmart Ltd. Santosh Meena, Head of Research, says that the bottom has been out after the stock of Paytm became a strong base at the level of 500. On the other hand, there has been a breakout of the Symmetrical Triangular Pattern with a strong positive divergence in the RSI. The stock has managed to stay above all its important moving averages. He has given 2 targets for the stock. First the stock can go up to the price of Rs 870 and after crossing it, the level of Rs 990 can also be seen. He says that now there is strong support for the stock at the level of 650.
Most broken stock from IPO price in 1 year
The share of Paytm is currently trading at a discount of 67 percent from the record high. This is the biggest drop in any IPO in the last 1 year. The issue price of Paytm was Rs 2150, while it is currently trading at Rs 706. The price of Rs 511 for the stock is a record low, which was made on 12 May 2022. That is, the stock is now showing an upside movement after weakening by 76 percent from its issue price. There has been an increase of 38 percent from the record low.
Positive momentum in the company’s business
Talking about the first 2 months of FY 2023 i.e. April and May, there has been good growth in the lending business of Paytm. The number of loans disbursed under Paytm’s loan business has increased to 55 lakh in the first 2 months of FY 2023. That is, on an annual basis, there has been a jump of 471 percent or about 6 times in loan disbursal. The company’s annual income estimate for loan disbursement has reached Rs 23,000 crore.
The loan disbursal of the company during April to May 2022 has increased by 471 percent or 6 times to 55 lakhs on a yearly basis. The loan value stood at Rs 3576 crore. In this, the annual growth was 829 percent. User engagement on the Paytm Super app has increased and the Average Monthly Transacting Users (MTU) during April to May 2022 grew by 48 per cent year-on-year to 74.3 million. Merchant Payment Volume (GMV) grew 105 per cent year-on-year.
(Disclaimer: Stock views are given by experts. These are not the personal views of The Financial Express. Markets are subject to risk, so take expert opinion before investing.)