Indian Bank, Paytm — Check Aditya Agarwala's Top Picks

Aditya Agarwala, head of research and investments at Invest4edu, has identified Indian Bank and One 97 Communications Ltd. as his top stock picks on Monday.

Agarwala has suggested buying Indian Bank with a target price of Rs 665 and putting a stop loss at Rs 590.

Indian Bank, in the year-to-date period, has given 20.39% returns and 12.42% in the last 12 months. The stock currently trades with a relative strength index of 51.91.

Out of 12 analysts tracking the company, 11 maintain a 'buy' rating, and one recommends a 'hold', according to Bloomberg data. The average 12-month consensus price target implies an upside of 6.6%.

Indian Bank is a public sector bank in India, established in 1907 and nationalised in 1969. It is owned by the Government of India. Indian Bank's segments include treasury, corporate/wholesale banking, retail banking, and other banking operations.

Agarwala also suggests buying Paytm stock at a target price of Rs 980 with a stop loss at Rs 845.

CLSA maintains a 'hold' call on the multibagger with a target price of Rs 870, indicating a 2% downside potential. The market anticipates a possible reintroduction of the merchant discount rate on UPI person-to-merchant transactions, driven by a sharp cut in government budgetary allocation for fiscal 2026.

The brokerage estimates that this discount rate could boost Paytm's adjusted Ebitda for fiscals 2027 and 2028 by 20–50%. The reintroduction is seen as a significant potential upside and could lead to a rerating for the stock.

One 97 Communications, in the year-to-date period, has fallen 9.28% but has delivered a staggering 155.91% in the last 12 months. The stock currently trades with a relative strength index of 63.50.

Out of 19 analysts tracking the company, nine maintain a 'buy' rating, seven recommend a 'hold', and three say 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 2%.