New Delhi, June 19
Global investment firm Bernstein, in its latest research report titled 'Paytm: What Do You Need to Believe Now?' has reaffirmed an 'Outperform' rating on One97 Communications Ltd (Paytm), setting a target price of Rs 1,100, which implies a 27 per cent upside from current levels.
According to Bernstein, “Paytm has shown remarkable resilience, recovering from the regulatory actions of early 2024 to once again near break-even,” with the report noting that many concerns around the sustainability of its business model have now been addressed.
Bernstein outlines a base-case scenario where Paytm’s EPS is projected to grow non-linearly from Rs 1.5 in FY26E to Rs 70 by FY30E, backed by strong revenue growth and tight cost control.
The report forecasts revenue to grow at a 22 per cent CAGR over FY25–30, while total costs are expected to rise at just 13 per cent CAGR, with indirect expenses limited to 10 per cent CAGR. A major driver of this growth is the high-margin lending business, where merchant and personal loan volumes are expected to grow 3.6 times from FY24 levels.