Mon Dec 09 05:28:41 UTC 2024: ## Paytm Stock Soars 140% in Six Months, but Should Investors Cash Out?

**MUMBAI** – Paytm’s stock has experienced a dramatic turnaround, rewarding investors with a 140% return over the past six months. After a sharp selloff earlier this year, triggered by RBI restrictions on its payments bank subsidiary in February, the stock plummeted to an all-time low of ₹310 in May. However, a subsequent surge has propelled it to a 52-week high of ₹951.90 on November 29.

This impressive recovery is attributed to several factors. The company reported a ₹930 crore profit after tax in Q2FY25, boosted by a one-time gain from selling its entertainment ticketing business. Furthermore, the resolution of regulatory uncertainties, including approval for FDI investment and a reapplication for a payment aggregator license, has significantly improved investor sentiment. UBS recently raised its target price to ₹1,000, although maintaining a “neutral” rating. The company’s strategic shift to offering default loan guarantees on merchant loans also contributes to the positive outlook.

Despite the strong performance, analysts offer mixed advice on whether investors should book profits. While the stock shows robust bullish momentum, technically indicated by its position above key EMAs and a relatively strong RSI (63), some experts warn of a potential bearish divergence near resistance levels. This divergence, coupled with profit-booking at higher levels, suggests a possible near-term correction towards ₹850.

Several analysts recommend partial profit-booking for those who bought at lower levels, with potential upside targets of ₹1,000 and ₹1,100. However, a sustained move above ₹950 would signal renewed bullish momentum. A critical support level sits at ₹850, offering a potential buy-on-dip opportunity. Investors are advised to consult financial experts before making any investment decisions.

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