Extending their winning run for the second straight session on Monday, December 1, shares of One 97 Communications, the parent company of Paytm, surged another 3.4% to reach ₹1,365, the highest level since December 2021.
Investors remain upbeat about the company’s growth trajectory, as regulatory headwinds, previously a major drag on the stock, are now gradually easing. This has improved earnings visibility, while the company’s plans to launch new products have further strengthened optimism on the Street.
Improving earnings in recent quarters, coupled with target price upgrades from brokerage firms, has fuelled an 18% rally in the stock over the past two months, putting it on track to deliver its third consecutive year of positive returns.
In the last eight months, the stock has finished seven of them in the green, marking its strongest one-way surge since its listing in November 2021. During this period, it has delivered an impressive 90% return.
Goldman Sachs double upgrade
Global brokerage firm, Goldman Sachs, last week, turned bullish on Paytm, upgrading its rating on the counter to ‘Buy’ from ‘Neutral’ and sharply raising its 12-month target price by 123% to ₹1,570 apiece from the previous ₹705 apiece.
In its more bullish outlook, the brokerage sees the stock price reaching ₹1,870 per share, while in a blue-sky scenario, it anticipates the stock could soar to ₹2,320 apiece, representing an upside of 79% from its latest closing price.
Goldman Sachs highlighted that Paytm has endured three major regulatory hurdles in recent years: the online merchant onboarding ban in 2022, the RBI’s curbs on unsecured lending in 2023, and the ban on Paytm Payments Bank (PPBL) in 2024. Goldman believes these issues are now largely behind, with the company beginning to regain market share.
It further noted that Paytm’s UPI and overall payments market share have already started recovering in recent quarters. It expects this momentum to continue following the recent online payment aggregator authorization and anticipates Paytm will step up customer acquisition efforts.
Overall, the brokerage expects 20–25% annual revenue growth for Paytm over the next 2–3 years. On the operating front, it has raised its FY26–30 EBITDA estimates by at least 45%, resulting in sizable EPS upgrades.
Mutual Funds boost stake in Paytm
Mutual funds significantly increased their stake in Paytm during the September quarter, taking it to an all-time high.
As of the end of September 2025, 40 mutual funds collectively held a 16.25% stake in Paytm, equivalent to 10.3 crore shares. This is a notable rise from the 13.86% stake held at the end of the June quarter, according to Trendlyne’s shareholding data.
Mutual funds have been steadily accumulating shares of Paytm over time. Some of the key funds holding stakes in the new-age company include Motilal Oswal Midcap Fund, which now owns a 5.57% stake; Nippon India Growth Mid Cap Fund, with a 2.11% stake; and Mirae Asset Large Cap Fund, which holds 1.66%.
Meanwhile, foreign investors trimmed their shareholding to 51.7%, down from 54.9% in June 2025. Retail investors also reduced their stake to 28.4%, compared with 29.3% in Q1FY25.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
