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Paytm gets buy rating for the first time after IPO scandal, know the reason

Paytm’s IPO is the biggest IPO in the country till date, but there was a turmoil in the listing. It was the investors’ turn to cry on the day of listing. Even then its price was falling for several days. However, its share price has been rising for some time and it has got a buy rating for the first time since the crash. A brokerage firm believes that Paytm will turn profitable by 2026.

Wealth Capital Markets Pvt Ltd says the transition from agent to “manufacturer” of financial services, cross-selling of services and strong growth in the number of users will help the company. Dolat analysts led by Rahul Jain said the company was “one of the strongest digital brands to capture a significant portion of the opportunities it was developing in the Indian Internet ecosystem”.
The brokerage is offering a target price of Rs 2,500 for Paytm, which is 16 per cent higher than the company’s issue price. Shares of Paytm closed at Rs 1,592 on Thursday, down 2.7 per cent.

Paytm’s parent company One97 Communications Ltd has raised ₹2.5 billion through an IPO, but its listing has faltered. Paytm has investments from giants such as Masayoshi Sons’ SoftBank Group Corp., Warren Buffett’s Berkshire Hathaway Inc. and Jack Mana’s Ant Group.
Paytm released its first financial results as a public company over the weekend, with losses widening to Rs. 4.74 billion. Its revenue grew more than 60% due to strong growth in financial, commerce and cloud services.

Disclaimer: The above information is for information only. Its purpose is not to advise you to buy or sell any shares. Be sure to consult your financial advisor before making any investment.

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