PAYTM (One 97 Communications) shares were in demand today as the company reported quarterly profit for the first time and issued a positive guidance. PAYTM has been facing selling pressure after RBI action last year but the stock has now recovered from lower levels. It wasn't easy for PAYTM stock to give a breakout above Rs 1,000 levels but today's close was comfortably higher at Rs 1,053. Among other gainers in today's session were Naukri (Info Edge) and brokerage service Angel One. All the three stocks are looking strong on technical charts and traders can expect further momentum in these counters. TopNews Team has reviewed the latest stories for these three outperformers for traders and short term investors. Investors must weigh strong recent performances against technical patterns, analyst forecasts, and underlying business fundamentals for these companies.

PAYTM: Profitability Ignites a Paradigm Shift—But Skepticism Lingers

PAYTM (One 97 Communications Ltd.) emerged from its lossmaking shadows to post a first-ever quarterly profit in Q1 FY26, reporting a net profit of ₹122.5 crore. This watershed reverses the ₹838.9 crore loss from the corresponding quarter last year and the ₹539.8 crore loss recorded in Q4 FY25. Operational vitality is evident in a 27.7% YoY surge in revenue to ₹1,917.5 crore and a reduction in costs to ₹2,016.1 crore, affirming a fundamental shift in the business.

Strong EBITDA of ₹72 crore and a margin of 4% underscore this turnaround. Usage metrics are equally compelling: 7.4 crore monthly transacting users and subscription merchants at an all-time high of 1.3 crore. Management credits an AI-driven operating model, enhanced cost control, and diversified financial services distribution for the operational leverage.

On July 22, shares closed at ₹1,052.6, a 3.28% rise reflecting investor enthusiasm. Yet, even as the stock boasts a 120% rally over the past year, it still sits 53% under its IPO price of ₹2,150—highlighting both the scale of its comeback and market caution about a full rehabilitation.

Technical Analysts and the Path Forward

Strategists such as Drumil Vithlani and Hardik Matalia warn of key resistance in the ₹1,020–₹1,030 zone. Classic chart formations—ranging from bullish “higher highs–higher lows” to a Cup and Handle on weekly timeframes—hint at eventual moves toward the ₹1,700 barrier. Nevertheless, the legacy of the high IPO watermark acts as a psychological, regulatory, and financial barrier.

Institutional Perspectives

Leading research desks—UBS among them—acknowledge the quarterly profit as a potential rerating catalyst but stop short of full bullishness. UBS maintains a Neutral view, pegging a price target of ₹1,050 while raising concerns about slow customer onboarding, regulatory bottlenecks, and the missing payment aggregator license. Longer-term, there is muted confidence on digital payment GMV expansion given broader sectoral slowdown and lower UPI incentives.

Key Takeaway

For investors, PAYTM’s violent return to profitability is a technical and sentiment-driven trigger. However, the runway for further stock recovery is hedged by regulatory clarity and the durability of new revenue streams. Rotational momentum is best managed with vigilant stop-loss orders and level-headed expectations regarding recovery to prior IPO valuations.

Info Edge: Portfolio Leverage to Eternal’s Quick Commerce Surge

A sudden spike in Info Edge (India) Ltd. shares—7.3% over two days—draws sharp attention to the firm’s venture-like exposure to Eternal Ltd. (formerly Zomato), the quick-commerce phenom whose 12.38% stake now comprises over one-third of Info Edge’s ₹94,184 crore market cap. Eternal’s 70% YoY jump in revenue, powered by its Blinkit segment eclipsing legacy food delivery for the first time, has fattened Info Edge’s portfolio value to an eye-catching ₹37,226 crore.

This kind of portfolio sensitivity carries both reward and risk, as swift moves in investee companies now play an outsized role in Info Edge’s valuation arc. Even as Eternal’s profits slipped year-on-year, market action was laser-focused on sustained scale and upward commercial prospects in the super-competitive quick commerce space.

Technical Analysis

Arpit Beriwal of Motilal Oswal sees Info Edge’s near-term trading range capped at ₹1,380–₹1,540. Precaution is advised for new positions, with suggested stop-losses anchored at ₹1,400—exhibiting a balanced approach awaiting further signals from both core and portfolio holdings.

Operational and Analyst Review

While the Zomato/Blinkit euphoria dominates headlines, Info Edge’s legacy digital platforms—Naukri, 99acres, Jeevansathi, and Shiksha—deliver stable returns anchored in digital adoption across recruitment, property, matrimony, and education domains.

Analyst consensus, collated by S&P Global Market Intelligence, breaks bullish: 70% recommend Buy, with an average price target at ₹1,602—translating to a roughly 14% upside. Q1 FY27 is forecast to spark 43% revenue growth and 138% EPS growth, cementing Info Edge’s quasibeta status on India’s digital economy story.

Yet, investors are reminded: “venture-style risk” isn’t just a soundbite—market swings in Eternal/Blinkit can inflate or deflate Info Edge exposure in rapid, unpredictable fashion.

Angel One: Strong Price Action—But Valuation Red Flags Flare

Angel One Ltd. continues to reward holders, its share price jumping 3.67% to ₹2,805.40 on July 22, extending a multi-month string of outperformance. The stock is up 14.9% over six months and almost 5% in the past week, consistently outpacing sector peers. Technical signals have flashed bullish, with both 20-day and 50-day moving averages signaling buy triggers in recent sessions. A scant 5.2% of sessions saw >5% intraday gains over four years, indicating a unique brand of disciplined price momentum.

Financial metrics bolster optimism: At end-March 2025, the price-to-earnings ratio sits at 24.66, price-to-book at 4.33, and Angel One’s market capitalization at a robust ₹25,402 crore. Share returns have bested savings rates by a wide margin, and robust return on equity (projected at 19.3% in three years) places Angel One ahead of most conventional alternatives.

Growth and Valuation

Analyst projections remain buoyant: earnings growth at 15.3% per annum and revenue expansion at 10.4% compounded through FY28. The fundamental view is constructive—provided the company maintains its fee structure, grows the client base, and adapts to fast-evolving fintech innovation and compliance.

Yet, valuation warnings blink. Recent consensus targets (AlphaSpread) suggest a mean price forecast of ₹2,757.19, with a high of ₹3,360 and low of ₹1,995. A sobering note is the DCF-derived intrinsic value: just ₹1,745.78. This implies the stock trades at a 35%–37% premium to base-case intrinsic value.

Recent Analyst Sentiment

Near-term, some analysts have trimmed their EPS outlooks, citing the need for enhanced digital engagement, broadening fee streams, and deft navigation through regulatory changes. Angel One’s aggressive dividend policy supports yields, though dividend safety remains debated due to high payout during this expansion phase.

Key Metrics Table

Bottomline for Investors

For PAYTM, the unambiguous shift into profitability resets the story but does not guarantee a smooth path toward full post-IPO redemption. Regulatory pivots and operational resilience are essential before long-term investors can be fully comfortable with the stock. Info Edge, flush with “venture-style” upside (and risk), offers a play both on digital India’s core growth and the volatility stemming from its major investee companies—making active risk management indispensable. Angel One stands at the intersection of momentum and valuation: its technical and operational performance are robust, yet price discovery may be running well ahead of intrinsic value, prompting a need for disciplined entry and greater scrutiny of future growth metrics.