Shares of Paytm rebounded in Friday’s early deals after declining to as low as ₹995 in opening trade. The stock of the digital payments and financial services firm was trading over 2% higher at ₹1,056 per share on the BSE, recovering around 6% from day’s low. Though, Paytm shares are still down over 50% from its initial public offering (IPO) issue price of ₹2,150 amid a spate of bearish views.
The company had recorded over 4-fold jump in loan disbursals during the October-December 2021 period with 44 lakh loans worth ₹2,180 crore disbursed from its platform as against 8.81 lakh loans worth ₹470 crore in the year-ago period.
“Paytm share is trying to find a base after a continuous fall. Recent announcements by the company on the business growth also haven’t helped the stock. It will require a die-hard believer in the business potential of Paytm to buy the stock through this correction. We believe that the company needs to communicate a clear path to profitability to investors rather than leaving it to their imagination. Failing that, it is difficult to see a quick end to this price fall,” said Abhay Agarwal, Founder and fund manager at Piper Serica, SEBI Regd. PMS.
One 97 Communications Ltd, Paytm’s parent company, raised $2.5 billion in its IPO, but a 27% plunge in its November 18, 2021 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 stock looks good, said Ravi Singhal, Vice Chairman at GCL Securities as h highlighted the RSI (relative strength index) is over sold on hourly chart. Singhal has advised the investors to keep a possible target price of ₹1,200 and stop loss of ₹999.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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