Shares of One 97 Communications Ltd, the parent company of the fintech platform Paytm, surged nearly 10% during Friday’s trading session. This significant rise came as the National Stock Exchange (NSE) revised the circuit filter limit for Paytm, increasing it from 5% to 10%.
The stock climbed 9.62% to reach Rs 379.90, nearing its upper circuit limit before some profit-taking trimmed the gains. This price increase elevated Paytm’s market capitalization to nearly Rs 25,000 crore, with the stock closing at Rs 346.55 in the previous session. The surge pushed the stock price to its highest level in a month.
By 11 AM on Friday, over 2.08 lakh shares of One 97 Communications, amounting to Rs 7.61 crore, were traded on the BSE. Similarly, on the NSE, more than 45.31 lakh equity shares of Paytm, worth over Rs 166.76 crore, exchanged hands during the same period.
The NSE had previously set a circuit filter of 20% for Paytm until January 31, 2024. However, a series of lower circuits and increased volatility prompted the exchange to revise the limit to 5%, which has now been adjusted to 10%.
Despite the recent gains, Motilal Oswal Financial Services has cut its earnings estimates for Paytm, projecting the company to achieve EBITDA breakeven by FY26. The firm values Paytm at Rs 400, based on 15 times FY28E EBITDA, discounted to FY26E at a rate of 15%. This valuation implies 2.3 times FY26E P/Sales, and Motilal Oswal maintains a ‘neutral’ rating on the stock.
