One 97 Communications , the parent company of Paytm, has seen its stock price rally significantly over the past year, despite still trading below its initial public offering (IPO) price. The company has also recently approved a new round of stock options for its employees, signaling confidence in its future growth.

Stock Performance and Technical Analysis

Shares of Paytm have demonstrated remarkable strength, surging 122% over the past 12 months. The stock is currently trading around ₹1,018.00, showcasing a strong recovery trend. However, it's worth noting that the current price still remains 53% below the IPO issue price of ₹2,150.00.

Technical analysts have observed promising patterns in Paytm's stock chart:

• The stock is forming higher highs and higher lows, a bullish indicator.
• It's approaching a resistance zone of ₹1,020.00-1,030.00.
• Paytm shares are trading above their 20-, 50-, 100-, and 200-day exponential moving averages (EMAs).
• The Relative Strength Index (RSI) stands at 65.86, indicating strong momentum without being overbought.

More advanced technical patterns have also emerged:

• A Cup and Handle formation is visible on the weekly charts.
• An Inverted Head and Shoulders pattern has formed on the monthly charts.

These patterns suggest potential for further upward movement, with some analysts projecting a possible target of ₹1,700.00.

Financial Outlook

While the company is currently not profitable, brokerages are optimistic about Paytm's financial future. Analysts expect Paytm to report its first-ever profit in Q1FY26. Projections indicate a potential profit after tax (PAT) exceeding ₹18.90 crore, compared to a net loss in the same quarter of the previous year.

Revenue from operations is anticipated to grow by 27% year-on-year, primarily driven by expansion in the payments and financial services segments.

Employee Stock Option Plan (ESOP) Update

In a recent development, Paytm's Nomination and Remuneration Committee has approved the grant of 93,244 stock options to eligible employees under its One 97 Employees Stock Option Scheme 2019 (ESOP 2019). This decision demonstrates the company's commitment to aligning employee interests with long-term corporate goals.

Key details of the ESOP grant include:

• Exercise price set at ₹9.00 per stock option
• Each option is convertible into one fully paid-up equity share with a face value of ₹1.00
• Options can be exercised during the entire period of continuous active employment from the date of vesting

Additionally, the committee noted that 128,789 previously granted stock options have lapsed in accordance with the terms and conditions of ESOP 2019.

As One 97 Communications continues to navigate the competitive fintech landscape, investors and analysts will be closely watching its progress towards profitability and its ability to maintain the strong momentum in its stock price.

One 97 Communications , the company behind Paytm, the digital payments giant, has seen its stock price surge an impressive 122% over the past year, currently trading around Rs 1,018.00. Despite this remarkable rally, the stock remains 53% below its initial public offering (IPO) price of Rs 2,150.00, highlighting the volatility in its journey since going public.

Technical Analysis Points to Bullish Trends

Technical analysts have observed several positive indicators for Paytm's stock:

• The stock is forming higher highs and higher lows patterns, a bullish signal in technical analysis.
• It's approaching a resistance zone of Rs 1,020.00-1,030.00, which could be a key level to watch.
• Paytm shares are trading above their 20-, 50-, 100-, and 200-day Exponential Moving Averages (EMAs), indicating strong upward momentum.
• The Relative Strength Index (RSI) stands at 65.86, suggesting strong buying interest without being overbought.

Chart Patterns Suggest Further Upside Potential

Analysts have identified two significant chart patterns that could indicate further upside for Paytm's stock:

1. Cup and Handle Formation: On weekly charts, a Cup and Handle pattern has been observed, which is often considered a bullish continuation pattern.

2. Inverted Head and Shoulders: The monthly charts display an Inverted Head and Shoulders pattern, typically seen as a reversal pattern suggesting a potential uptrend.

These patterns have led some technical analysts to project a possible movement towards the Rs 1,700.00 level, representing significant upside potential from current levels.

Financial Performance Expectations

While the stock's technical indicators are drawing attention, investors are also keeping an eye on Paytm's financial performance:

• Brokerages anticipate Paytm to report its first-ever profit in Q1FY26.
• Projected Profit After Tax (PAT) for Q1FY26 is expected to exceed Rs 18.90 crore, compared to a net loss in the same quarter last year.
• Revenue from operations is forecasted to grow by 27% year-on-year, driven primarily by expansion in payments and financial services segments.

Investor Considerations

While the technical analysis and profit projections paint an optimistic picture, investors should consider that the stock is still trading significantly below its IPO price. The journey from the current price of around Rs 1,018.00 to the IPO price of Rs 2,150.00 represents a substantial gap, underscoring the importance of careful analysis and risk assessment.

As Paytm continues to navigate the competitive fintech landscape, market participants will be closely watching both its technical indicators and fundamental performance to gauge the stock's future trajectory.