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PAYTM: AI Expansion And Subsidiary Moves Will Shape A Cautious Outlook

Digital Payment Advances Will Drive Long-Term Trends in Financial Markets

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PAYTM
AnalystConsensusTarget
Not Invested
Published 01 Dec 2024

Update shared on 09 Dec 2025

Fair value Increased 4.85%
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AnalystConsensusTarget's Fair Value
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1Y
25.7%
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0.02%

Analysts have nudged their price target for One97 Communications higher from ₹1,302.59 to ₹1,365.82, citing slightly stronger long term margin expectations and a modestly higher future valuation multiple, despite largely unchanged growth and discount rate assumptions.

What's in the News

  • Paytm partnered with Groq to deploy GroqCloud and LPU hardware, aiming to deliver faster, more cost efficient AI inference for transaction processing, risk assessment, fraud detection, and customer engagement across its platform (Client Announcements).
  • The company called a Special and Extraordinary Shareholders Meeting via postal ballot on November 23, 2025, to seek approval for transferring its Offline Merchants Payment Business to wholly owned subsidiary Paytm Payments Services Limited (Special/Extraordinary Shareholders Meeting).
  • A board meeting on October 15, 2025, is scheduled to consider acquiring additional stake in Paytm Financial Services Limited to make it a wholly owned subsidiary (Board Meeting).
  • Another board meeting on November 4, 2025, will review unaudited Q2 and half year FY2026 results, consider appointing Manisha Raj Raisinghani as a Non Executive Independent Director, and address other corporate matters (Board Meeting).
  • Recent product launches include Paytm AI Soundbox for AI driven merchant assistance, a Gold Coins rewards program convertible into Digital Gold, and Paytm Postpaid as a credit line on UPI to offer short term credit for everyday payments (Product Related Announcements).

Valuation Changes

  • Fair Value: Risen slightly from ₹1,302.59 to ₹1,365.82, reflecting a modest upward revision in the intrinsic value estimate.
  • Discount Rate: Increased marginally from 13.32% to 13.34%, indicating a barely changed assessment of risk and required return.
  • Revenue Growth: Reduced slightly from 22.13% to 22.05%, pointing to a marginally more conservative long term growth outlook.
  • Net Profit Margin: Improved very slightly from 22.26% to 22.28%, implying a small uplift in expected long term profitability.
  • Future P/E: Risen moderately from 38.40x to 40.32x, suggesting a somewhat higher forward valuation multiple embedded in the target.

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Disclaimer

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