Digital financial services firm One97 Communications, which owns Paytm, hit a 3-month high of Rs 669.60 as they rallied 20% in Tuesday’s intraday trade on the BSE. The massive buying arises better financial performance of the company in Q3FY23.

The stock has been trading at its uppermost level since October 18, 2022, having surged 28% over the past two trading sittings. Paytm was trading 11% upper at Rs 617.80 amid heavy volumes. The average trading volumes on the counter hopped & joined 12.2 million shares, having altered hands on the NSE and BSE. In comparison, the S&P BSE Sensex was almost unaffected at 60,506.

In Q3FY23, Paytm’s Ebitda, a pointer of operational profit, before ESOP cost margin enhanced to Rs 31 crore. The company achieved operating Ebitda profitability three quarters forward of guidance, focused on revenue growth across businesses, controlled cost management, and functioning leverage.

Paytm narrowed its combined net loss to Rs 392 crore in Q3FY23. The company had dispatched a net loss of Rs 778.4 crore a year ago. Its revenue from operations bounced about 42% to Rs 2,062.2 crore. The influence profit, which eliminates taxes and advertising costs, more than gathered to Rs 1,048 crore during the testified quarter on a YoY basis.

Meanwhile, the company has accomplished a share buyback value of Rs 796 crore. The company’s board approved a share buyback worth Rs 850 crore at Rs 810 per share.

Those at JPMorgan have an ‘overweight’ score on Paytm, with a one-year target of Rs 950, as it trusts Paytm can transport high teen net margins outside FY26 once the high ESOP cost base runs out while carrying revenue growth near 30% with optimistic free cash flow.