After four sessions of gains, today, Shares of Paytm which is listed as One97 Communications. Previous to this, the stock, which rose 21% in the last four sessions, has seen a fall of 3.74% to Rs 380.45 today. This decline can be attributed to the foreign brokerage Goldman Sachs assigning a 'neutral' rating on the stock. It also trimmed the target price from INR 860 per share to INR 450. The adjustment reflects the potential loss of market share in the payments sector.
Goldman Sachs also sees a slowdown in lending in the near term as a consequence of a recent RBI directive that imposed strict restrictions on Paytm Payments Bank (PPBL).
The revenue and adjusted EBITDA expectations for FY24E-26 have been reduced by up to 36% and 80%, respectively. According to Goldman Sachs, FY25 revenues are predicted to tumble 21% year on year, down from the earlier prediction of 16% increase.
If we look at today’s situation on BSE, Paytm's market capitalization has decreased to INR 25,494 crore. This has resulted in a turnover of INR 54.48 crore with a staggering total of 13.92 lakh shares of the firm changed hands. It is also worthy to note that the stock hit a 52-week low of Rs 318.35 on February 16 this year.
At 10:29 a.m., the stock rose 1.59% to Rs 401.55 on the BSE but has faced a loss of 34.09% in a year. Indicating a modest volatility over a year, the stock has a beta of 0.2. So technically, Paytm's relative strength index (RSI) is 33.4 which further indicates that it is neither oversold nor overbought.
