Paytm share price rises despite weak market; do you own?

One97 Communications, parent company of Paytm, share price surged as much as 3 per cent on Tuesday despite weak market sentiments. At 9:33 am, the stock was trading at ₹685.75 apiece on March 11.

The stock was trading higher after the company said in a regulatory filing on March 9 that it has allotted 84,793 equity shares under its employee stock option schemes.

In an exchange filing on Sunday (March 9), Paytm announced that its board had approved the allotment of equity shares with a face value of ₹1 each to eligible employees who exercised their vested options under the Employee Stock Option Scheme (ESOP) 2019 and ESOP 2008.

A total of 84,377 shares were allocated under ESOP 2019, while 416 shares were issued under ESOP 2008, with an exercise price of ₹9 per share.

Following this allotment, the company's issued, subscribed, and paid-up equity share capital has increased from ₹63.76 crore to ₹63.77 crore.

Recently, the company has made several announcements regarding ESOPs. Last month, it allocated 1.36 lakh equity shares under ESOP 2019, following a previous allotment of 2.03 lakh stock options under the same plan in January.

On the financial front, Paytm reduced its consolidated net loss by 6 per cent to ₹208.5 crore in Q3 FY25, compared to ₹221.7 crore in the same quarter last year. However, revenue from operations declined by 36 per cent to ₹1,827.8 crore from ₹2,850.5 crore in FY24.

Meanwhile, the company has been grappling with regulatory hurdles. Last week, the Enforcement Directorate (ED) served a show cause notice to Paytm and two of its subsidiaries for allegedly violating multiple provisions of FEMA in transactions amounting to approximately ₹611 crore.

Should you buy or sell?

Brokerage firm JM Financial has given ‘buy’ rating to the Paytm stock. The brokerage firm has set the target price of ₹1,250, sees an upside potential up to 40 per cent.

“We value Paytm at 70X FY27E PER (in-line with trading multiples of our consumer internet coverage), resulting in Mar’26 TP of INR 1,250, 40% upside at CMP. We recommend ‘BUY’,” the brokerage firm said.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.