Paytm shares rise 7% as subsidiary gets SEBI approval

Stocks of One97 Communications, parent to Paytm, jumped 7 per cent on March 18, ranking it as one of the leading gainers on the Nifty 500 index. The company had recently notified the exchanges that its wholly owned subsidiary, Paytm Money Ltd., has been granted a Certificate of Registration as a Research Analyst by the Securities and Exchange Board of India (SEBI).

New certification to increase Paytm's financial services

The registration with SEBI enables Paytm Money to deliver compliant research products, such as investment ideas, research reports, and data-based analysis. It is a critical milestone for Paytm to strengthen its presence in the financial services space beyond payments business.

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With this registration, Paytm Money can provide SEBI-compliant research services and deliver well-structured research insights and analysis to investors," the company said in its exchange filing.

Stock gains, but still down significantly from highs

Even after Tuesday's rally, Paytm's stock is still far below its high. As of Monday's close, the stock was down 35 per cent from its latest 52-week high of Rs 1,062 and is still 65 per cent below its IPO price of Rs 2,150.

Technical indicators point to the stock bottoming at its 200-Day Moving Average (DMA), which is currently at Rs 690. Shares of Paytm closed at Rs 735.6 on Tuesday, up a 6.6 per cent gain. Still, the stock is down 25 per cent in 2025 till now.

Brokerages optimistic despite challenges

Leading brokerage Bernstein has maintained its “outperform” rating on Paytm, setting a target price of Rs 1,100. Most analysts covering the stock have a “buy” recommendation, citing the company’s strong position in digital financial services.

Though regulatory pressure and business model realignments remain challenges, the SEBI nod for Paytm Money has been viewed as a growth driver. Investors would keenly monitor developments, particularly on profitability and business growth in the research and investment space.