Risk-reward favourable for Paytm; may rise more than 100% in 1 yr: Analysts

Shares of Paytm surged 8 per cent to Rs 535.45 apiece in the intra-day trade on Friday, before settling at Rs 537, up 7 per cent

With shares of Paytm down over 70 per cent from its issue price, analysts believe the stock is turning favourable from risk-reward perspective. Moreover, with the management's focus on profitability, and the target of turning free cashflow (FCF) positive in 12-18 months, analysts are confident that the company will end cash burn in the next 4-6 quarters.
 

ICICI Securities, for instance, has a 'Buy' rating on the stock, with a target price of Rs 1,285. It says more-than-expected operating profitability (Ebitda before ESOP cost) via consistent margin improvement, along with clarifications around regulatory developments with no onerous outcome, provide comfort.