By Malvika Gurung
Investing.com -- 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.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.