Shares of One 97 Communications, the parent company of fintech major Paytm, rallied as much as 4% to Rs 1,804 after international brokerage Bernstein named the stock its top pick, citing robust merchant lending growth, operating leverage and the potential introduction of MDR on UPI as key drivers of earnings growth.
With a target price of Rs 2,200, the brokerage forecasts an upside potential of up to 26% from current market levels. Bernstein expects Paytm’s EPS to reach Rs 78 by FY29. Even after excluding any potential impact from MDR on UPI, its FY29E EPS estimate stands at Rs 54, still above the Rs 46 consensus estimate.
