Shares of fintech giant Paytm (listed as One 97 Communications) are on a roller coaster ride since the company made its debut on Dalal Street. The stock was back in the green today and rose 10 per cent to hit an intraday high of Rs 1,490.95 on BSE. Market cap of the firm rose to Rs 96,333 crore.
On Monday, the downhill run of Paytm shares continued and the stock tanked 19 per cent to hit an intraday low of Rs 1,271 on BSE.
Paytm initiated its journey as a public company with a 27 per cent fall over its IPO (initial public offering) price on November 18, 2021. The scrip 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.
Yesterday, the company lost over Rs 50,000 crore market cap from the Issue Price of Rs 2,150. The shares fell for the second straight session post a weak market debut last week.
Amid the ongoing turbulent ride, here's what experts have to say about the road ahead for the investors of digital payment firm Paytm.
"In this current market scenario where the benchmark indices are in a profit booking zone, we expect Paytm share prices to remain subdued and weak for some more time. It may touch the level of Rs 1,150 before fresh buying triggers. We advice investors to be cautious and enter only when sentiments turn around," Dr. Ravi Singh, Vice President & Head of Research, ShareIndia told BusinessToday.in.
According to Manoj Dalmia, Founder and Director-Proficient Equities Limited, stuck investors should wait as there is some buying of the stock is visible and investors should expect some consolidation around the price of Rs 1200-1350 that can be a buying opportunity considering base formation.
He added that investors could hold for a few quarters and wait for the results as this might trigger buying action from FIIs and DIIs.
Akhil Rathi, Vice President Advisory, Marwadi Shares and Finance Limited said, "the stock is trading now at around 30% down from IPO price. The long-term investors can now start accumulating the stock. We will have to watch out how the company will turn its financials and sustain its market share."
"Existing investors can hold the stock for now and the high-risk appetite investors can take a position in a staggered manner," Kranthi Bathini, equity strategist at WealthMills Securities, told BusinessToday.in.
Price band of the digital payment firm IPO was fixed at Rs 2,080-Rs 2,150 per share. The IPO was subscribed 1.89 times on final day. The issue received bids for 9.13 crore equity shares against offer size of 4.83 crore shares and the company collected Rs 18,300 crore through the IPO.
Brokerage firm Macquarie has a 'underperform' rating on the stock with a target price of Rs 1,200 per share. "Paytm’s valuation, at around 26x FY23E Price to Sales (P/S), is expensive especially when profitability remains elusive for a long time," it said in a note.
On Sunday, the financial services firm announced that it saw a 418 per cent year-on-year (YoY) increase in value of loans disbursed through it in October at Rs 627 crore, while the number of loans disbursed grew 472 per cent YoY to 13 lakh.
The recently-listed company also said that its board will meet on November 27 to consider and approve the financial results for the quarter and half year ended September 30, 2021.
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