Should you invest in Paytm?:Former BSE chairman finds current prices attractive for long-term investors; some brokerages see up to 22% upside on the stock

Paytm shares have created a lot of excitement in the stock market world in recent days. Albeit, the Initial Public Offer (IPO) was a big flop. The scrip is still down 37% as compared to the issue price of ₹2,150 but, thanks to recent positive ratings by the US-based multinational investment bank and financial services company, Goldman Sachs, the company’s shares have just taken off on the Dalal Street (D-Street), of late. Infact, the stock has already rallied so much that it has crossed price target levels given by brokerages in recent times.
Paytm share price performance: So! Since, the stock has shot up over 8% in just the last five days, retail investors are puzzled whether they should invest now or wait for a correction! Lets see what experts have to say! According to stock market analysts, the company’s shares can still rise 22% from Monday’s closing price of ₹1,366.90 apiece. One97 Communications Q1 FY26 results on yearly basis S.Ravi, founder, Ravi Rajan and Company and former BSE Chairman, says For long-term investors, current prices are attractive, given the company’s strong execution and future earnings potential reflected by analyst consensus targets, which are often in the range of ₹1,300 to ₹1,650 for a one-year horizon. This translates to over 16% upside from current levels. Recently, Goldman Sachs upgraded the ratings of the company, One97 Communications (the parent firm) to ‘Buy’ from ‘Neutral.’ The investment bank sees the stock prices rise to ₹1,570 apiece for a one-year horizon. While, on the downside, Ravi is of the opinion that ₹1,000-₹1,100 is a strong support zone. According to Ravi, any slide from current levels to the ₹1,000 to ₹1,100 range, fetches a better risk-reward ratio for retail investors. This range is also a strong support zone for the stock. One97 Communications Q1 FY26 results on a quarterly basis Should people invest in Paytm for long term? The former BSE chairman is of the opinion that those who want to cough off money in the shares of the online aggregator app should opt for the SIP route. Ravi says, For long-term investors, current prices are attractive, given the company’s strong execution and future earnings potential. Generally, for long-term investors, one should initiate a position at current levels in a staggered manner through a SIP, endeavoring to reduce the volatility risk in the near term while participating in the long-term value creation and valuation re-rating expected.
What’s in for short-term traders? Ravi has warned short-term traders to enter the stock at current levels as the scrip has already rallied considerably. Albeit, Jigar S. Patel, Sr. Manager – Equity Research Anand Rathi Shares and Stock Broking, says that in the short term, support is placed at ₹1,230 level.
While he thinks that if the company’s shares fall below ₹1,230 then, he sees 6% more correction to ₹1,150 level. According to Patel, ‘fresh low positions’ should be avoided in the scrip. Albeit, Ravi thinks that ₹1,000-₹1,100 is strong support zone. ​