If problems remain restricted to BPPL & UPI payments continue, Paytm stock will go up: Pranav Gundlapalle, Sanford C Bernstein

economictimes.indiatimes.com:

Pranav Gundlapalle, Senior Research Analyst, Sanford C Bernstein, says from the bottom that we saw, what is driving the Paytm stock up is incremental news flow confirming that all the problems are restricted to Paytm Payments Bank Ltd (PPBL) and One 97 Communications will continue its UPI payments which is anyway 70% of the payment volumes. As long as that gets resolved and remains unimpacted, there is a significant upside from here.

What is it that you make of this last salvo by Vijay Shekhar Sharma stepping down?
Pranav Gundlapalle: I think it is again an attempt to distance the 197 entity from the PPBL entity. So in the spirit of maybe being late is better than never, there is an attempt to set that up as an independent entity with limited linkages to One 197 Communications. I think that is the objective.

Unlock Leadership Excellence with a Range of CXO Courses

That also probably sets the stage for making more changes at PPBL. So they have reconstituted the board. They could probably bring in a bunch of strategic partners. But would it matter for the listed entity? Maybe not. It is clear that there will be severing of ties between the two entities and what is priced in right now is essentially that the products which were being housed in the PPBL will go away and that will not be available on the Paytm app. So that part