Paytm Stock Surges 122% in 12 Months, Approaches Key Resistance Levels
By ScanX News Team
One 97 Communications (Paytm) stock has surged 122% over the past year, trading at Rs 1,018.00, though still 53% below its IPO price. Technical analysis shows positive patterns including higher highs and lows, trading above key EMAs, and an RSI of 65.86. Analysts project Paytm's first profit in Q1FY26 with a 27% YoY revenue growth. The company recently granted 93,244 stock options to employees at Rs 9.00 per option.
*this image is generated using AI for illustrative purposes only.
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:
- A Cup and Handle formation on weekly charts
- 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:
| Detail | Value |
|---|---|
| Exercise Price | Rs 9.00 per stock option |
| Conversion | One fully paid-up equity share with a face value of Rs 1.00 |
| Exercise Period | Anytime during continuous active employment from the date of vesting |
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.
Historical Stock Returns for One 97 Communications
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.28% | +6.33% | +18.97% | +24.92% | +132.30% | -32.66% |
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