Shares of fintech major Paytm have been on a selling spree for quite a long time now. The stock plunged 1.4 per cent to hit an all-time low of Rs 837.55. The market cap of the company slipped below Rs 55,000 crore on BSE.
Currently, the stock is trading 57 per cent lower from its all-time high of Rs 1,961.05. It opened tad lower at Rs 847.95 against the previous close of Rs 849.65 on BSE. The stock is down over 37 per cent on a year-to-date basis.
"Buying on dips is recommended. It is an apt opportunity for the long-term players of the market. However, it needs a little more consolidation at the lower levels. Henceforth, the short-term players can buy on dips for short-term gains and meanwhile the long-term players can accumulate on dips," said Ravi Singhal, Vice-Chairman, GCL Securities.
"Post results, the stock is under pressure and volumes are coming down significantly. The institutional interest is very less despite attractive valuations of the stock now," Kranthi Bathini, equity strategist at WealthMills Securities told BusinessToday.In.
He added that the investors are in a wait and watch mode now on these new-age business models. Management guidance with respect to profitability is much crucial for the stock going ahead.
Macquarie, which had initiated coverage of the company in November last year with a target price of Rs 1,200, slashed its target to Rs 700 citing profitability concerns.
Recently, Paytm announced its third-quarter numbers with the net loss widening to Rs 779.80 crore, higher than the previous quarter’s loss of Rs 461.20 crore. Further, total income dipped slightly to Rs 999.30 crore in the third quarter from Rs 1,095.60 crore in the previous quarter.
Vijay Shekhar Sharma-led One 97 Communications made a tepid debut on November 18 last year. The scrip got 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.
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