Emkay Upgrades Paytm To ‘Add’, Stock Jumps 4%

Emkay Global has upgraded its rating for Paytm from ‘reduce’ to ‘add’, citing the fintech company’s progress towards achieving profitability. The brokerage firm raised its price target for Paytm’s stock to INR 750 per share, up from INR 375, indicating a potential upside of over 15% from the previous close. Emkay’s positive outlook is based on easing regulatory restrictions and Paytm’s cost-cutting measures, which are expected to improve its financial performance. The upgrade led to a 4% increase in Paytm’s stock price in early trading. Emkay anticipates that Paytm will turn operating EBITDA positive by the fourth quarter of FY25, excluding employee stock ownership plans (ESOP) and UPI incentives. This upgrade reflects growing investor confidence in Paytm’s ability to navigate regulatory challenges and achieve sustainable growth.