Shares of One 97 Communications, Paytm’s parent company, rallied 8% to hit over a nine-month high of Rs 785.50 in Thursday’s intraday trade after brokerage firm BofA Securities upgraded the stock to “buy” due to strong revenue momentum and operational leverage. The foreign brokerage firm upgraded the target to Rs 885 per share.

The fintech company’s shares have soared 11% over the past two sessions. It is trading at its highest level since August 22, 2022. The stock has rebounded 79% from its 52-week low of Rs 439.6 hit on November 24, 2022.

Meanwhile, total loan disbursements through Paytm stood at Rs 9,618 crore in the first two months (April and May) of 2023-24, according to a regulatory filing by its parent company One97 Communications. Hence, this is 169% higher than the Rs 3,576 crore recorded during these two months last year. In May alone, the platform disbursed loans worth Rs 5,502 crore.

The total number of loans increased by 54% to 8.5 million, compared with 5.5 million in the same period last year.

Paytm said the company continues to see distribution growth in postpaid and personal loans. It works with large NBFCs and banks and continues to focus on the quality of loans distributed through its platform. The company currently has 7 lending partners and plans to add 3-4 partners in FY24.

Motilal Oswal Financial Services values the stock at Rs 900.