Shares of One97 Communications, the parent company of fintech firm Paytm, rose 4% after hitting a more than three-month high of Rs 739 on Thursday amid heavy BSE trading. The stock is currently at its highest level since March 11, 2022. The stock has risen 36% in the past two months and recovered 44% from an all-time low of Rs 511 on May 15, 2022.

At 10.55 am, Paytm was trading at Rs 737, while the S&P BSE Sensex was up 0.43%. As of this writing, OTC volumes have increased nearly 1.5 times, with a total of 3.4 million shares changing hands on the NSE and BSE.

Despite its massive gains over the past two months, Paytm has underperformed the market, down 34% over the past six months, while Sensex has fallen 12%.

The shares are trading at a 66% discount to the issue price of Rs 2,150 per share. Paytm debuted on the stock market on November 18, 2021. It hit an all-time high of Rs 1,961.05 on its listing day on November 18, 2021, but has failed to reach its IPO price since listing.

In the April-June quarter of FY22-23 (Q1 FY23), Paytm’s Gross Merchandise Value (GMV) continued to grow strongly at $2.96 trillion (+101% YoY). Paytm Super-App had the highest consumer engagement, with an average monthly transaction user (MTU) of 74.8 million in the first quarter of fiscal 2023, a year-on-year increase of 49%.

Total loans disbursed in Q1FY23 increased by 492% year-on-year to 8.5 million (1.4 million in Q1FY22). Total loans disbursed in 1QFY23 increased by 779% YoY to Rs 5,554 crore (Q1 FY22: Rs 630 crore). The loan business now pays Rs 24,000 crore annually. The average ticket size continued to increase due to the expansion of personal loans.

Paytm is India’s leading ‘fintech horizontal’ and has established more monetisation sources than all its competitors in payments, commerce and financial services. This gives it the unique ability to drive monetisation and profits at a lower CAC than its peers across multiple segments.

“We expect Paytm to deliver strong revenue growth across all of its business areas, driven by increased device monetisation in payments, financial services cross-selling, bill recycling and ad monetisation. We expect revenue in FY22-26 to be Mixed. FY26 CAGR of 40% to ~$2.8 billion, CM at 44%. We believe it maintains the highest revenue and profit levels among its local vertical and global horizontal peers,” JPMorgan analysis in its latest report indicated.