new Delhi. The share of Indian digital payment company Paytm has fallen more than 70 percent since its listing in November. There is another bad news for the people waiting for the price to rise by investing in this stock. Firm Macquarie Capital Securities (India) Pvt has further reduced its target price. This is the same firm that had feared about this stock falling to a very low level in the past.
Macquarie’s Suresh Ganapathy cut his target price from Rs 700 to Rs 450 ($5.90) citing low valuations of fintech companies globally. This means that the share of Paytm can now come up to Rs 450. If you are thinking of investing in this now, then you should once look at the price suggested by this firm.
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Paytm dropped to a new level yesterday
Additionally, Suresh Ganapathy of Macquarie has not changed the earnings or revenue estimates for Paytm, which he had earlier reported as under-performing. On Thursday, March 17, 2022, at the time of writing the news, Paytm’s stock was trading at Rs 623.60, while it touched its lowest level on Wednesday (Rs 572) a day earlier.
Also read – Paytm founder Vijay Shekhar Sharma is losing 88 crores every day, out of the list of billionaires
Paytm had introduced the biggest IPO ever in India, but since then it has faced many challenges. Ganpati cited fintech regulations and stricter compliance norms as potential problems. Remember that on Friday, the Reserve Bank of India had stopped the company’s Paytm Payments Bank business from accepting new customers and since then the pressure on the stock increased.
As per data compiled by Bloomberg, the 12-month average price target among 9 analysts covering Paytm is Rs 1,203. Prior to the listing, Macquarie analysts, including Ganpati, had talked about an underperform rating as well as a target price of Rs 1,200. The issue price of the IPO was Rs 2,150.
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