In the second quarter of FY25 (Q2FY25), mutual funds displayed a significant increase in confidence towards One97 Communications, the parent company of Paytm, by raising their stake by an impressive 15 per cent. This surge in institutional investment reflects a growing belief in the long-term potential of Paytm within the digital payments sector. Between July and September, the company’s stock delivered robust returns of approximately 70 per cent, indicating strong performance in a competitive market.
At the conclusion of the first quarter of FY25 (June 30, 2024), Paytm’s share price stood at ₹402.2. By the end of Q2FY25 (September 30, 2024), the share price experienced a remarkable climb, closing at ₹688.35 according to BSE analytics. This represents a substantial return of around 71 per cent over the quarter, highlighting the volatility and potential profitability associated with investing in Paytm stock.
During Q1FY25, mutual funds held approximately 4.32 crore shares of Paytm, which accounted for 6.80 per cent of the company’s total shareholding. However, by the end of Q2FY25, the holdings surged to around 5 crore shares, elevating their total stake to 7.86 per cent. This considerable increase underscores the growing optimism among institutional investors regarding Paytm’s future growth trajectory and its competitive positioning in the financial technology landscape.
Paytm Share Price History
As of October 14, 2024, Paytm’s share was trading slightly lower at ₹720 on the BSE, marking a decrease of 0.57 per cent. The digital finance company, led by Vijay Shekhar Sharma, boasts a market capitalization of ₹45,838 crore, positioning it as a key player in the sector. Notably, Paytm’s shares achieved a 52-week high of ₹998.30 on October 20, 2023, illustrating the stock’s potential for growth in the upcoming trading sessions.
Breakdown of Mutual Funds Holdings in Paytm
Leading the charge in increased mutual fund holdings, Nippon Mutual Funds raised its stake in Paytm significantly, growing from approximately 1.11 crore shares in Q1 to 1.44 crore in Q2. This surge boosted Nippon’s shareholding percentage from 1.76 per cent to 2.27 per cent, reflecting a strong bullish sentiment towards Paytm’s performance and market prospects.
Additionally, Mirae Mutual Funds also augmented its holdings from around 2.29 crore shares in Q1 to 2.85 crore in Q2, resulting in an increase in its shareholding percentage from 3.92 per cent to 4.49 per cent. This growing investment from multiple mutual fund houses signals an increasing endorsement from institutional investors, effectively positioning Paytm as a viable investment option amidst a dynamic market landscape.
Disclaimer: The perspectives and suggestions presented in this analysis are those of individual analysts or brokerage firms, not reflective of any broader organizational stance. We strongly urge potential investors to consult with licensed financial advisors before undertaking any investment decisions, as market conditions can change swiftly and individual financial situations may differ.
