Paytm Shares Jump 5% as Sebi Approves Paytm Money’s Research License
Paytn shares appreciated $2-3.5 more for investors on Tuesday, March 18, 2025 as they increased more than 5 percent during intraday trade. During the trading session, shares of Paytm, at 10:40 am, were already 4.8 percent higher than yesterday's price at 721.9 and after hitting an intraday high of Rs 724.25 per share (up 5.1 percent) compares to 1.13 percent gain in the benchmark BSE Sensex index.
Shares of Paytm increased after the market regulator, Securities and Exchange Board of India or SEBI, approved the fintech’s arm, Paytm Money, to function as a Research Analyst.
“Paytm Money Limited, a wholly owned subsidiary of One 97 Communications Limited, has been granted a Certificate of Registration as a Research Analyst by the Securities and Exchange Board of India (SEBI) under the SEBI (Research Analysts) Regulations, 2014,” said One97 Communications, the parent company of Paytm, whilst announcing the news at a stock exchange.
To the statement, the company said this is a step towards achieving Paytm Money’s aim of diversifying products in the investment ecosystem, enhancing user experience and expert enabled support to retail and institutional investors.
"Investors will be able to make more informed decisions about their finances after these services are incorporated into the Paytm Money app for research and advisory services,” said the company in a statement.
Paytm Money is a registered stock broker and Depository Participant, as certificated by SEBI, allowing them to assist in trading of equity and derivatives, provide depository services, and aid in granting access to initial public offerings.
So far this calender year, Paytm has experienced a steady decline in prices of its shares. The stock price is down 32.3 per cent from this time last year, which is a greater decline than the average 4 percent drop in the benchmark index through out the year 2025.
The shares of Paytm fell approximately 35.2 percent from the 52 week high price of Rs. 1,063 per share, that was reached on the 17th of December, 2024.
Fueled by its deep penetration in the ecosystem of small merchants, Paytm has emerged as the largest player in the fintech industry in India (by Revenue). The company has not just one of the largest bases of merchants, but is also able to cash in on this merchant base through selling device subscriptions and earning on payments and loan disbursals.
As mentioned by experts, analysts suggest that Paytm leads with the most merchants on UPI, having GMV market share of region 35 percent, alongside being among the top five payment gateways in India. The firm is sitting at below 5 percent loan penetration on payment device subscribed merchant base which offers vast growth potential in case the new DLG model motivates existing partners to boost disbursals and/or new partners get onboarded.
Buoyed by having NPCI endorsement in place for capturing new UPI customers and strong balance sheet, they see Paytm positioned to reap a positive spiral which allows spending and monetisation to be optimised for multiple areas while simultaneously expanding, as claimed.
Paytm stock is rated 'Buy' by example JM Financial Services with a price target of Rs 1,250 for March, 2026.
We project 23 percent FY25-30 revenue CAGR with Ebitda margin improving to 20 percent by FY30. Moreover, other-income is expected to also increase due to higher cash balance resulting from selling the Events ticketing business and PayPay stake in Japan, while depreciation is presumed to be flat/declining, which will lead to strong PAT conversion yielding 16 percent PAT margin by FY30, the said.