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.

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's shares have also shown positive technical indicators, suggesting potential for further growth.

Stock Performance

Paytm's stock (NSE: PAYTM) has experienced a remarkable surge of 122% over the last 12 months, with shares currently trading around Rs 1,018.00. However, it's worth noting that the stock still remains 53% below its IPO issue price of Rs 2,150.00.

Technical Analysis

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

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

On a broader timeframe, two significant chart patterns have emerged:

1. A Cup and Handle formation on weekly charts
2. An Inverted Head and Shoulders pattern on monthly charts

These patterns suggest the potential for the stock to move towards the Rs 1,700.00 level, according to technical analysts.

Financial Outlook

Brokerages are optimistic about Paytm's financial performance, projecting the company to report its first-ever profit in Q1FY26. Analysts expect:

• Projected Profit After Tax (PAT) to exceed Rs 18.90 crore, compared to a net loss in the same quarter last year.
• Revenue from operations is anticipated to rise by 27% year-on-year, driven primarily by growth in payments and financial services.

Recent Corporate Action

In a recent development, Paytm's Nomination and Remuneration Committee approved the grant of 93,244 stock options to eligible employees under the One 97 Employees Stock Option Scheme 2019 (ESOP 2019). The committee also noted that 128,789 stock options had lapsed.

Key details of the stock option grant include:

This move aligns with the company's efforts to retain and motivate its workforce as it strives for profitability and continued growth in the competitive fintech space.

As One 97 Communications continues to navigate the dynamic financial technology landscape, investors and analysts will be closely watching its stock performance and financial results in the coming quarters.