Digital payments major Paytm (One 97 Communications) continues to attract investor optimism. In its latest research note, JM Financial reaffirmed its ‘Buy’ rating on the stock and set a target price of ₹1,470, reflecting strong confidence in the company’s growth prospects.
Here’s a breakdown of what’s driving their positive outlook 👇
📈 1. Revenue Growth Remains Steady
According to JM Financial, Paytm’s revenue grew 7% year-on-year to reach ₹20.6 billion in the latest quarter.
This indicates the company’s core payments and financial services business continues to perform robustly despite increased competition in the fintech space.
💹 2. EBITDA Doubles — Profitability on Track
Paytm reported an EBITDA (excluding ESOP costs) of ₹1.4 billion, double from the previous quarter.
This improvement highlights the company’s focus on cost efficiency, improved unit economics, and higher contribution from financial services.
🧩 3. digital payments and Lending Drive Growth
The brokerage noted that Paytm’s strong performance was largely driven by its payments and loan-distribution segments.
The company continues to scale its merchant network and consumer base while deepening partnerships with financial institutions.
🏦 4. Financial Discipline Wins Investor Confidence
JM Financial’s report emphasized Paytm’s commitment to profitable growth and operational efficiency.
The company’s focus on reducing cash burn, controlling expenses, and improving margins is seen as a key factor behind the ‘Buy’ call.
💼 5. Target Price: ₹1,470 — Strong Upside Potential
With a target price of ₹1,470, JM Financial expects significant upside from current levels.
The brokerage believes Paytm’s improving financial metrics, rising wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital adoption, and expanding financial-services ecosystem position it well for long-term gains.
🔍 6. Market Outlook: Fintech Sector Back in Focus
Analysts note that the indian fintech space is stabilizing after regulatory adjustments, and paytm stands to benefit from its strong brand, technology backbone, and diversified offerings — from payments and lending to insurance and wealth products.
🧠 Bottom Line
JM Financial’s latest note reinforces confidence that Paytm’s turnaround story is intact.
With consistent revenue growth, better margins, and a focus on sustainable profitability, the fintech leader appears poised for a solid 2025.
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