Paytm has weakened 65 percent from its record high. In fact, taking a big action on Paytm Payments Bank, RBI has banned the addition of new customers with immediate effect.
The shares of One 97 Communications Ltd (Paytm) are witnessing a huge decline today i.e. on March 14. The stock of the company has weakened by more than 12 percent in the intraday today at a price of Rs 672. This is the new all time low for the stock. It has weakened by 65 percent from the coming record high. In fact, the Reserve Bank of India (RBI), taking a big action on Paytm Payments Bank, has banned the addition of new customers with immediate effect. After this, the market sentiment regarding the stock has worsened and the investors sold the stock fiercely. At the moment the question arises that what should be done with this stock now.
may affect the brand
Brokerage house Macquarie has maintained an underperformer rating on the stock. The brokerage house had given a downside target of Rs 700 for the stock, while the stock broke it in intraday and weakened to Rs 672. The brokerage says that RBI has forbidden the payments bank to add new customers. Although the payment bank’s customer base is already huge, it will not affect the company’s business much. But there will be an impact on brand and customer loyalty.
Investment Advice with Target Cut
Brokerage house ICICI Securities says that earlier we had estimated that the consumer base of Paytm may grow by 10 percent in FY23E. On the other hand, monthly transacting users can increase by more than 25 percent run rate. At present, after the RBI ban, the company will have to make additional efforts to offset the adverse impact and increase the engagement of existing users. Now, moderation is expected in the onboarding of new users and may have a negative impact on revenue. The brokerage has reduced the target price of the share to Rs 1285 from Rs 1352 earlier. Although the advice of Nivea is maintained in the stock.
read this also: RBI’s big action on Paytm Payments Bank, ban on adding new customers
Paytm: 65% broken from record high
Even after being the most talked-about IPO of the year 2021, the stock of Paytm has disappointed investors. The stock of the company has reached a new record low of Rs 672 today. The company’s stock was listed in the market on 18 November 2021. It was listed at Rs 1955 as against the issue price of Rs 2150, which is a record high. It closed at Rs 1564, down 27 per cent on Listing Day. The stock is currently at Rs 672, which is 65 per cent lower than the record high. The high valuation of IPO is also believed to be responsible behind this decline. At the same time, some picture is not clear about the profits of the company.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
,