Indian markets have often underestimated companies that later became big winners. Infosys, HDFC Bank, Bharti Airtel, and Bajaj Finance were all doubted at some point before proving themselves. Paytm could now be at a similar stage.
In the stock market, old opinions tend to stick even after things change. What people believe often matters more for valuations than what is actually happening in the business. This gap between perception and reality has often created chances for strong returns.
Paytm shows this clearly. The shadow of its IPO, questions around profitability, and fears of regulatory scrutiny shaped its perception for years. But behind the headlines, the business has been changing. It has cut costs, built a strong base in merchant payments, and taken a more cautious approach to lending. Products like the Soundbox have made merchants more loyal, while lending partnerships have become safer. In many ways, the company has moved faster than investors have noticed.
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Infosys bounced back after the dot-com crash, HDFC Bank went from being a small private lender to reshaping Indian banking, Airtel recovered after being written off during the Jio storm, and Bajaj Finance held steady through multiple NBFC crises. In each case, market sentiment took longer to adjust than the company’s actual performance — and investors who looked deeper gained.
The lesson is simple: in the short term, stories and opinions dominate. But when a company’s fundamentals start improving before the market accepts it, that’s where opportunities lie.
Paytm may be facing such a moment now. Whether it turns into a long-term success like others remains uncertain, but it shows once again how market mispricing often happens in plain sight.