New Delhi, Feb. 19 -- Shares of One 97 Communications Ltd, parent of fintech firm Paytm, have been in focus amid news flow around the potential valuation of PhonePe's upcoming public issue. The interest is understandable: Paytm is the closest listed comparable peer to PhonePe. Both fintech firms began by facilitating consumer and merchant payments through UPI before expanding into the distribution of financial products such as loans and insurance broking.

In a recent report, analysts at Macquarie Capital Securities said Paytm compares favourably with PhonePe as it is already profitable at the Ebitda level and could therefore see a re-rating.

Paytm's market capitalization currently stands at about Rs.77,000 crore, while PhonePe is report...