New Delhi: Shares of One97 Communications, the parent company of Paytm, jumped by nine percent on Thursday, June 13, after announcing a partnership with Samsung. This partnership will add travel and entertainment services to Samsung Wallet in India. Samsung plans to introduce features like flight, bus, movie, and event ticket bookings, making it easier for consumers to book these services directly through Samsung Wallet, using Paytm’s wide range of services.
The stock reached a high of Rs 439 on the NSE in the morning, marking its third day in a row of gains. Before this, the stock closed at Rs 402.65 in the previous session, having risen about 25 percent over the past week from Rs 339.85 on June 5. The recent surge was largely due to the NSE increasing the trading limit for One97 Communications on June 6, from 5 percent to 10 percent.
With this partnership, users of Galaxy smartphones will be able to access Paytm’s services, such as booking flights and buses, buying movie tickets, and booking events, all directly within Samsung Wallet. Paytm also announced it would withdraw its application to register its associate company as a ‘general insurance company,’ choosing instead to focus on distributing insurance.
Before this recent rise, Paytm shares had faced significant selling pressure after the RBI imposed a ban on Paytm Payments Bank in January 2024. The stock had fallen by over 50 percent from its previous levels and was two-thirds below its 52-week high. Although still down by 57 percent from its peak of Rs 998.30 on October 10, 2023, analysts have mixed opinions about its future.
Macquarie has kept an ‘underperform’ rating on Paytm, with a target price of Rs 275, expecting further declines due to tough market conditions. On the other hand, Motilal Oswal has revised its earnings estimates and expects Paytm to break even in earnings before interest, taxes, depreciation, and amortization (Ebitda) by FY26, valuing the stock at Rs 400 with a ‘neutral’ rating based on FY28E Ebitda and sales projections.
