Paytm Hits Fresh All-Time Low on Jan 19; Tanks 26% in 12 Sessions

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Paytm Hits Fresh All-Time Low on Jan 19; Tanks 26% in 12 Sessions

By Malvika Gurung -- Shares of the fintech player Paytm (NS: PAYT ) declined 3.8% to Rs 1,002.05 apiece at 2:10 pm, after sinking 5% to record a fresh all-time low of Rs 990/share on Wednesday, backed by heavy volumes amid a weak market.

In the past 12 sessions, the digital payments stock has plummeted 26%, while tanking about 54% from its issue price of Rs 2,150. Paytm was listed on November 18, 2021, and was the biggest public issue on Dalal Street. Ever since its public listing in two months, the stock has not once posted a profit.

The stock is under 10% away from reaching the most bearish target price of Rs 900/share set by Macquarie (NYSE: MIC ) earlier this month.

Paytm opened at a discount of 9.3% against its issue price on the NSE at Rs 1,950/share and was subscribed less than 2 times the shares on offer.

On Jan 10, 2022, brokerage firm Macquarie lowered its target price on Paytm’s stock from Rs 1,200 to Rs 900 while maintaining its ‘underperform’ rating. 

It stated that the company’s business results and updates suggested a lower revenue CAGR estimate of 23% for FY21-26 while paring the revenue estimates until FY26 by 10% on an average every year.

Besides, Paytm could be impacted after RBI’s digital payments regulations on capping wallet charges, as 70% of its business is contributed from the payments business, along with IRDAI’s recent rejection of Paytm’s foray into insurance, which could affect its chances of getting a banking license.

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  • Joginder Singh @Joginder Singh
    it will show good result now..
    Like 0
  • mehul shah @mehul shah
    this share has shown worst performance after RPower rt?
    Like 0
  • Rahul Singh @Rahul Singh
    Like 0

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