Paytm stock is down 70% from its ipo price. what should paytm do to push up its performance?

• Home • Karnataka Election 2023 • Budget 2023 • Market • Stock Stats • Top Gainers • Top Losers • Indices • Nifty 50 • Sensex • CaFE Invest • Commodities • IPO NEWS • Investing Abroad • IPOs • Economy • Tech • Auto • SME • Mobility • Industry • Banking & Finance • Education • Money • Insurance • Income Tax • Mutual Funds • Blockchain • Infrastructure • Railways • Aviation • Roadways • India • Defence • Lifestyle • Travel & Tourism • Health • Science • Healthcare • Brand Wagon • Entertainment • Events • Jobs • Sports • IPL 2023 • Multimedia • Photos • Videos • Audio • Web Stories • Auto Web Stories • Infographics • ePaper • Today’s Paper • From The Print • International • Edits & Columns • Opinion • FE 360 • Politics • Economy • Personal Finance Print • Front Page • FE Insight • Fe@Campus • archive In another setback for Paytm, shares of One 97 Communications Ltd, it’s parent company, plunged nearly 12% on Monday, hitting an all time low of Rs 672.10 a piece. Shares fell Monday after the Reserve Bank of India barred Paytm Payments Bank Ltd from onboarding new customers. On NSE, shares opened at Rs 675 a piece, down 12.9% from previous close while on the BSE shares opened at Rs 684, down 11.7% from Friday’s close. Following RBI action, brokerage ICICI Securities cut the company’s target price to Rs 1,285 a unit from the previous target price of Rs 1,352 a piece. At 9:52 am, Paytm shares were trading at Rs 682.05 a piece on the BSE index, down 11.9%. RBI’s embargo will have ...

Bank of America (BoFA) Securities maintains a ‘Neutral’ rating on Paytm stock. Faster than expected market share gains, Paytm getting small finance bank license are the upside risk for the Paytm stock while material change in regulations, and overhang from large float being owned by private equity and Chinese investors are the key downside risks.

“Paytm shares will continue to be under pressure in the near term as ‘long-term’ domestic institutions continue to exit their anchor allocations within 2 months of listing. The current approach of the management of leaving the business strategy to the imagination of investors is only going to further dent the stock price," said Abhay Agarwal, Founder and fund manager at Piper Serica, SEBI Regd. PMS. The gross merchandise value (GMV) of the company more than doubled to ₹2.5 lakh crore during October-December 2021 compared to ₹1.12 lakh crore it registered in the corresponding quarter a year ago. Ravi Singh, Vice President & Head of Research, Share India Securities expects Paytm stock to see more downside and touch the levels of ₹1050-1000 in near terms. He has advised investors to remain cautious towards taking fresh positions for time being. One 97 Communications Ltd, Paytm’s parent company, raised $2.5 billion in its IPO, but a 27% plunge in its 18 November debut made it one of the worst initial showings by a major technology firm since the dot-com bubble era of the late 1990s. “Paytm’s payment business accounts for about 70% of revenue, which will be under threat if there are any regulatory changes . Also, its entry into insurance sectors has been rejected by regulators. The stock is trading at about 17 time FY23 sales which seems overvalued. We expect a small retracement till ₹1336.35 if any buying happens and further downwards ₹724.6," said Manoj Dalmia, Founder and Di...

Paytm share price today is around 70 per cent lower from its upper price band of ₹2150. The One97 shares have been nosediving ever since it listed on Indian bourses and has remained an ideal 'sell on rise' stock for Dalal Street bulls. However, after hitting the life-time low of ₹510 on NSE, One97 share price has bounced back giving a ray of hope to its positional investors. According to JP Morgan report, Paytm share price is set to give some sharp upside movement and it may regain four-digit price by end of March 2023. On fundamentals of the company that may fuel Paytm share price rally in next six months, the brokerage said, "PAYTM is the leading “fintech horizontal" in India, having built more sources of monetization across payments, commerce and financial services than all of its competitors. This gives it the unique ability to drive monetization and profits across several segments at lower CAC vs peers." "We expect PAYTM to see strong revenue growth across all its business segments thanks to device monetization in payments, financial services cross-selling, ticketing recovery and rising ad monetization. We see revenues growing at a >40% CAGR over F22-26 to ~$2.8bn and CMs rising to 44% by FY26E. We see it retaining the highest revenue and profit levels among local vertical and global horizontal peers," the brokerage report added. On its suggestion to stock market investors, JP Morgan report says, "We value PAYTM using a DCF valuation baking in rising cost of capital w...

Shares of One 97 Communications Ltd — parent company of fintech platform Paytm — hit a new all-time low of Rs 672 per share after falling 12% in early trade on Monday. At the same time, 50-stock benchmark index Nifty was down 0.08% at 16,617.35 points. 🗞️ Why is Paytm’s share price falling? The latest tumble in the company’s share price is on account of a ban by the Reserve Bank of India (RBI) on Also Read | What is the way forward for Paytm Payments Bank? The RBI has also directed the payments bank to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system. “Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing report of the IT auditors,” the RBI noted. In its statement, Paytm Payments Bank said that it was working with the banking regulator to get the concerns addressed. “We shall notify when we recommence the opening of new accounts after obtaining RBI approval.We shall notify when we recommence the opening of new accounts after obtaining RBI approval,” it said.

Paytm’s shares were trading at a discount of 27.3% or INR 1564 ($21.15) per share at 1514 Indian Standard Time after opening at INR 1955 ($26.4), down from the issue price of INR2150 ($29). Paytm is the second notable loss-making company Paytm is one of India’s largest digital payments companies with around 337 million users, 50 million of whom are active monthly users. Indians use the service to pay for a wide range of services, from taxi cabs to airline and movie tickets. Paytm serves more merchants than any other payments firm in India, with over 20 million partners in its network. It makes money by charging large merchants a fee. Paytm also offers wealth management solutions and banking services. But analysts said that investor sentiment toward the firm has soured because the company has failed to state how each of its business units will turn a profit. Ahead of the company’s share listing, brokerage firm Macquarie Research reduced its target price to INR1,200 ($16.2) a share, down 40% from the issue price of INR 2,150, saying that Paytm’s business model lacks focus and direction. Paytm’s spokesman did not comment on the share debut. Dabbling in multiple business lines inhibits Paytm from being a category leader in any business except payment wallets, which are becoming inconsequential with the meteoric rise of a government-run Unified Payment Paytm won’t make significant money by merely being a payments distributor; eventually, it will have to provide lending, the bro...

Based on Support and Resistance and Pivot levels, I think PayTM will test the following targets. Target 1 -> 840 Target 2 -> 1000 Target 3 -> 1300 Lets keep an eye on this stock Based on Support and Resistance and Pivot levels, I think PayTM will test the following targets. Target 1 -> 840 Target 2 -> 1000 Target 3 -> 1300 Lets keep an eye on this stock Price in consolidation zone near the resistance level of 747. Breakout above this level, with good volume will create a momentum for a substantial upside. 680 can act as immediate support zone. PS: Not a buy/sell recommendation. Price in consolidation zone near the resistance level of 747. Breakout above this level, with good volume will create a momentum for a substantial upside. 680 can act as immediate support zone. PS: Not a buy/sell recommendation. The infamous stock of Paytm which was the largest IPO at the time of its listing has eroded IPO investor's wealth by more than 50%. However, the strong has been consolidating from quite few months now. We have seen multiple buybacks from the founder and promoter in this stock during the same which w The infamous stock of Paytm which was the largest IPO at the time of its listing has eroded IPO investor's wealth by more than 50%. However, the strong has been consolidating from quite few months now. We have seen multiple buybacks from the founder and promoter in this stock during the same which w Paytm is showing strength and increase in volume every day and can give massive b...

Paytm share price at fresh 52-week low, down 70% from IPO price: Buy, Sell or Hold? Paytm Share Price NSE, BSE, Paytm Share Price Target: Paytm share price on Tuesday, November 22, tanked more than 9 per cent to hit a fresh 52-week low of Rs 483.20. Technical analyst Nilesh Jain has given a Sell call on the stock. • • • • • The stock of One97 Communications, the parent of the digital payments giant Paytm, is currently available at a discount of 70 per cent from the IPO issue price of Rs 2,150. Paytm IPO, the second biggest in the country's corporate history after LIC, made had made its debut on the stock exchange at a discount of 9 per cent. Earlier, Paytm reported a widening of consolidated loss to Rs 593.9 crore in the second quarter ended September 30, 2022. The company had posted a loss of Rs 481 crore in the same period a year ago, Paytm said in its regulatory filing. Paytm's consolidated revenue from operations increased by about 76 per cent to Rs 1,914 crore during the reported quarter from Rs 1,086.4 crore in the September 2021 quarter. Paytm said that its revenue from payment services to consumers increased by 55 per cent to Rs 549 crore on year-on-year (YoY) basis while payment services to merchants went up by 56 per cent to Rs 624 crore YoY. The company's net payment margin (calculated as payments revenues plus other operating revenues, less payment processing cost) increased multi-fold to Rs 443 crore on year-on-year basis on account of improved monetisation an...

Paytm founder Vijay Shekhar Sharma on Wednesday said his stock grants will be vested only when the company's market cap has crossed the IPO level on a sustained basis. In a letter to shareholders, Sharma said the company's shares are down significantly from the IPO price amid volatile market conditions for high growth stocks globally. Shares of Paytm parent One97 Communications jumped 5% to ₹646 in the intraday trade today following the announcement. The stock is down 70% from its issue price of ₹2,150. Sharma said the digital payments firm is aiming to be operationally profitable by September next year. "While we will publish our fiscal 2022 financial results in due course, we are encouraged by our business momentum, scale of monetisation and operating leverage. We expect this to continue, and I believe we should be operating EBITDA breakeven in next 6 quarters (i.e. EBITDA before ESOP cost, and by the quarter ending September 2023), well ahead of estimates by most analysts," Sharma wrote in the letter. "We are going to achieve this without compromising any of our growth plans." This comes weeks after Macquarie Capital Securities cut the target price of One97 Communications to ₹450, 36% down from ₹700 it predicted in February. The foreign brokerage had retained its "underperform" rating on the stock, saying its valuation for the digital payments major is based on the valuation of global fintech firms. Suresh Ganapathy, who tracks the stock at Macquarie, has been bang on w...

“Paytm shares will continue to be under pressure in the near term as ‘long-term’ domestic institutions continue to exit their anchor allocations within 2 months of listing. The current approach of the management of leaving the business strategy to the imagination of investors is only going to further dent the stock price," said Abhay Agarwal, Founder and fund manager at Piper Serica, SEBI Regd. PMS. The gross merchandise value (GMV) of the company more than doubled to ₹2.5 lakh crore during October-December 2021 compared to ₹1.12 lakh crore it registered in the corresponding quarter a year ago. Ravi Singh, Vice President & Head of Research, Share India Securities expects Paytm stock to see more downside and touch the levels of ₹1050-1000 in near terms. He has advised investors to remain cautious towards taking fresh positions for time being. One 97 Communications Ltd, Paytm’s parent company, raised $2.5 billion in its IPO, but a 27% plunge in its 18 November debut made it one of the worst initial showings by a major technology firm since the dot-com bubble era of the late 1990s. “Paytm’s payment business accounts for about 70% of revenue, which will be under threat if there are any regulatory changes . Also, its entry into insurance sectors has been rejected by regulators. The stock is trading at about 17 time FY23 sales which seems overvalued. We expect a small retracement till ₹1336.35 if any buying happens and further downwards ₹724.6," said Manoj Dalmia, Founder and Di...