Paytm share price soars 21% in 4 days as Paytm karo brigade becomes bigger

Shares of One 97 Communications, which runs Paytm, on Wednesday rallied 5% to hit an upper circuit level at Rs 395.25 on BSE. In the last four days of a non-stop rally, the counter is up over 21% as the worst of the regulatory crisis is seen to be over by investors.

“Given the still depressed valuation and the removal of a major regulatory overhang, we see considerable upside and maintain our Outperform rating with a Target Price of Rs 600,” said Pranav Gundlapalle of Bernstein, adding that the regulatory actions are restricted to Paytm Payments Bank (PPBL). He expects One 97 to successfully execute the operational changes required to remove the dependency on PPBL with limited long-term impact to their overall business.