Currently, the stock is trading 55 per cent lower from its all-time high of Rs 1,961.05. It ended 4.43 per cent lower at Rs 917.35 against the previous close of Rs 959.90 on BSE.
Shares of Paytm (listed as One 97 Communications) plunged over 8 per cent and slipped below Rs 900 to hit an intraday low of Rs 881.5 on the BSE on Monday. The stock was highly volatile today with an intraday volatility of 5.61 per cent.
Currently, the stock is trading 55 per cent lower from its all-time high of Rs 1,961.05. It ended 4.43 per cent lower at Rs 917.35 against the previous close of Rs 959.90 on BSE. The market cap of the company slipped below Rs 60,000 crore.
Vijay Shekhar Sharma-led One 97 Communications made a tepid debut on November 18 last year. The scrip listed at a discount of 9.30 per cent at Rs 1,950 on the NSE against the issue price of Rs 2,150 per share.
Recently, global brokerage firm Macquarie had slashed the price target for the stock by 25 per cent to Rs 900 from Rs 1,200 earlier. On Monday, the stock was trading below the target price amid a global sell-off.
The brokerage slashed its estimate for Paytm’s revenue by an average 10 per cent per year till 2025-26 due to lower distribution and cloud revenue, which has only partially been offset by higher sales from payment operations.
“Senior executives have been resigning from Paytm, which is a cause of concern and could impact business in our view if the current rate of attrition continues,” Macquarie said.
According to Dr. Ravi Singh, Vice President and Head of Research at ShareIndia, sentiments for Paytm were already weak and the stock is seeing its worst performance at this time when the overall market is in correction mode.
However, he noted that it seems technically the stock may consolidate at current levels and fresh buy entry may be taken if it sustains this level for a few weeks.
“The global investors are in a complete risk-off mood and it is exacerbated by the sharp fall in cryptos and nervousness around Fed meeting over the next couple of days,” said Abhay Agarwal, Founder of Piper Serica.
Divam Sharma, Founder of Green Portfolio, noted that there are a lot of headwinds for the company from a regulatory point of view. Adding to the woes, the company has recently seen hurdles at the senior level, indicating serious concerns around management stability.
Recently, the company said that it saw 401 per cent year-on-year (YoY) rise in loan disbursals through its platform during the October-December quarter at 44 lakh. It disbursed loans amounting to Rs 2,180 crore, registering a 365 per cent YoY growth.
Reference Link:- https://www.businesstoday.in/markets/stocks/story/paytm-stock-hits-lifetime-low-slips-below-rs-900-mark-320133-2022-01-24