Paytm share price rises after August business updates, up 100% from its 52-week low; should you buy the stock?
Paytm share price rose over 2 per cent in intraday trade on BSE on Wednesday, looking set to extend gains into the second consecutive session, boosted by the company's business updates for the month of August. One97 Communications Ltd, the parent of Paytm, reported a 20 per cent year-on-year (YoY) growth in average monthly transacting users at 94 million in the July-August period from 79 million in the same period last year. Besides, Paytm said in a statement that it disbursed loans worth ₹5,517 crore ($667 million) in August through its lending platform.
The company's merchant payment volumes (GMV) increased by 43 per cent year-on-year to ₹3 trillion ($36.3 billion) in July-August 2023, up from ₹2.1 trillion in July-August 2022. Paytm continued to see an increase in GMV of non-UPI instruments like EMI and cards, according to the company's statement. Read more: Paytm records 20% rise in monthly users in July-August, GMV up 43% Paytm share price has seen strong traction in the last six months and has significantly outperformed the equity barometer Sensex.
The stock has gained about 44 per cent in the last six months against a nearly 9 per cent gain in the Sensex. The stock hit its 52-week high of ₹939 on the BSE on August 25, 2023. It plumbed its 52-week low of ₹439.60 on November 24 last year.
The stock has jumped 100 per cent from its 52-week low level. Experts believe the stock still has steam left to go higher. Brokerage firm Motilal Oswal Financial Serviceshas a buy call on the stock, with a target price of ₹1,000, implying a 13 per cent upside potential.
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