Paytm and Eternal shares gained in early trade on Wednesday, with both new-age stocks finding buying interest as investors weighed a combination of company-specific catalysts, including a brokerage upgrade in positioning and developments in the quick-commerce space.
Paytm shares rose as much as 2.34% to Rs 1,546.90, while Eternal gained up to 1.18% to Rs 319.75. At 9:52 am, Paytm was trading 2.04% higher at Rs 1,578.40, while Eternal was up 0.9% at Rs 318.85.
The gains came even as the broader market remained under pressure, with the BSE Sensex down 0.2% at 77,074.
ALSO READ: Nifty50 Q1 EPS Beats Estimates; Can The 16.7% FY27 Growth Ask Be Met?
Zepto Raises Minimum Order Value
Eternal, which owns Blinkit, was also in focus after Zepto raised its minimum order value to Rs 199 from Rs 149, bringing it in line with Blinkit and Swiggy's Instamart.
The minimum order value can rise further to Rs 299 during periods of high demand, according to the details.
The move could work in favour of Eternal and Swiggy by improving Net Order Value growth and potentially supporting market share gains. For quick-commerce players, a higher minimum basket size can improve the economics of each order, particularly when demand is strong.
That makes the development relevant for both Eternal's Blinkit and Swiggy's Instamart, even as competition in India's quick-commerce market remains intense.
Bernstein Adds Paytm, Eternal To India Model Portfolio
The stocks also received a boost from Bernstein's latest portfolio positioning.
The global brokerage has added Eternal and Paytm to its India model portfolio, citing visible near-term catalysts.
For Eternal, Bernstein has an entry price of Rs 317.10 and a target of Rs 350. The stock had closed at Rs 315.90 on August 18, putting the brokerage's target at nearly 11% upside.
Bernstein said it had previously stayed away from Eternal because of concerns around the competitive quick-commerce landscape and the possibility of a rival listing. It now believes those overhangs have eased, with Eternal having asserted its position in the segment.
The brokerage also pointed to EBITDA and Net Order Value growth ahead of estimates, alongside steady growth in the food delivery business.
Paytm Has 42% Upside, Says Bernstein
Paytm's inclusion comes with an even more aggressive target.
Bernstein has set an entry price of Rs 1,559.40 for One97 Communications, Paytm's parent, and a target of Rs 2,200. Based on Paytm's August 18 closing price of Rs 1,546.30, the target implies upside of more than 42%.
The brokerage views Paytm as a momentum play on the likely finalisation of the merchant discount rate on UPI transactions.
According to Bernstein, Paytm's core business is providing downside protection, while the potential introduction of an MDR on UPI transactions could improve net payment margins and, in turn, support earnings growth.
For investors, that makes the potential UPI MDR decision an important catalyst to watch for Paytm, while developments in quick commerce and order economics remain key for Eternal.
With Bernstein now positioning both stocks around visible near-term catalysts, Wednesday's gains reflect two different market narratives: a potential earnings and margin trigger for Paytm, and improving quick-commerce economics for Eternal.
ALSO READ: Swiggy Share Price Falls Over 1% After It Turns 'Indian-Owned' With Foreign Stake Capped At 49.5%
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
