In intraday, the shares of Paytm rose by about 13 percent to reach a price of Rs 592. The company had said in the information given to BSE yesterday that business fundamentals are strong.
The shares of One 97 Communications Ltd (Paytm) are witnessing a great growth today i.e. on March 24. Today, the shares gained about 13 per cent in intraday and reached a price of Rs 592. At the same time, while writing the news at 1 pm, it has a gain of 10 percent and is trading at Rs 576. The company had said in the information given to the stock exchange BSE on 23 March itself that the business fundamentals are strong. There is no information as to what caused the stock to fall. At present, the stock of Paytm has seen such a big jump for the first time since November 24. 1 day ago, the stock had come at a price of Rs 521, which is an all time low for this.
Stock recovers after 76% break
The share of Paytm was listed in the market on 18 November 2021. The company had kept the issue price of Rs 2150, while it was listed in the market at a price of Rs 1955. Rs 1955 is the record high for the stock. The stock has never seen this sentiment since its listing. On the listing day, it fell 27 percent and closed at Rs 1564. At the same time, on 23 March, the stock came down to Rs 521, which is a record low. The price of Rs 521 is about 76 percent lower than the issue price.
The clarification was given on the fall in the stock
Paytm said in a filing given on the stock exchange BSE on 23 March that the business fundamentals of the company are completely strong. This is reflected in the results released on February 4, 2022. The company is fully committed to complying with the rules regarding listings. Any such information or announcement made by the company, which may have a bearing on the price and volume of the share, shall be communicated to the stock exchange within the stipulated time. At present, the company does not have any such information, which may have an impact on the price and volume of the stocks.
Consistently negative sentiment
Recently, taking action on Paytm Payments Bank, RBI has banned the addition of new customers. This is a big negative trigger for the stock. At the same time, questions were also raised on its valuation since the listing itself. Expert said that the valuation of Paytm is the biggest concern for investors. The company has not yet made a profit. Due to this there is also concern about the future outlook. The company’s losses have also increased in the December quarter of FY 2022.
Brokerage has reduced the target price
In a recent report on the stock of Paytm, analyst Suresh Ganapathy of brokerage house Macquarie has cut the target price to Rs 450 by making a big cut. Earlier, Macquarie had reduced the target for the stock from Rs 900 to Rs 700. Whereas even before that the brokerage had given a target of Rs 1200 for the stock. The brokerage has maintained an underperform rating for the stock. And there has been no change in the estimate of revenue.
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