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Why Amit Gupta Bullish On Stagnant Auto Stock And Paytm Parent
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CNBC TV18•12-10-2026, 16:14
Why Amit Gupta Bullish On Stagnant Auto Stock And Paytm Parent
- •Motilal Oswal Private Wealth director Amit Gupta highlights market correction opportunities in stocks like Paytm parent One97 Communications, Jamna Auto, and Karur Vysya Bank.
- •Gupta estimates a potential 60 percent EBITDA boost for One97 Communications if merchant discount rates are introduced on UPI transactions.
- •Jamna Auto stock has remained stagnant for four years, but an expected recovery in commercial vehicles and its dominance in parabolic springs could act as growth triggers.
- •Karur Vysya Bank stands out among southern lenders due to its strong return on equity, low gross non-performing assets, and growing gold loan portfolio.
- •Gupta views the broader market correction as an attractive entry point for long-term investors despite ongoing foreign institutional investor selling and currency pressures.
Key Questions Answered
Gupta estimates that the potential introduction of merchant discount rates and charges on UPI transactions could add roughly ₹600 crore to One97 Communications' EBITDA, representing a nearly 60% increase over existing expectations.
Jamna Auto could benefit from a commercial vehicle recovery, an industry shift from conventional leaf springs to parabolic springs where it commands an 85% market share, and a potential free trade agreement with Europe in fiscal 2027.
Karur Vysya Bank stands out with a robust return on equity of around 20% compared to 14-15% for Federal Bank, alongside a lower gross non-performing asset ratio of roughly 0.7% versus 1.74%.
