Paytm share price at fresh 52-week low, down 70% from IPO price: Buy, Sell or Hold?

Paytm Share Price NSE, BSE, Paytm Share Price Target: Shares of Paytm tanked on Tuesday, November 22, to hit a fresh 52-week low. The stock opened at Rs 535 apiece and selling pressure dragged the stock to hit the day's low of Rs 483.20 apiece. At 10:20 AM, it quoted Rs 491.70.

The stock of One97 Communications, the parent of the digital payments giant Paytm, is currently available at a discount of 70 per cent from the IPO issue price of Rs 2,150. Paytm IPO, the second biggest in the country's corporate history after LIC, made had made its debut on the stock exchange at a discount of 9 per cent.

According to technical analyst Nilesh Jain, the view on Paytm is negative. He has given a Sell call on the stock with a target range of Rs 450-460.

"The structure is weak. There is a structural breakdown from 8-month consolidation," he said.

Earlier, Paytm reported a widening of consolidated loss to Rs 593.9 crore in the second quarter ended September 30, 2022.

The company had posted a loss of Rs 481 crore in the same period a year ago, Paytm said in its regulatory filing.

Paytm's consolidated revenue from operations increased by about 76 per cent to Rs 1,914 crore during the reported quarter from Rs 1,086.4 crore in the September 2021 quarter.

Paytm said that its revenue from payment services to consumers increased by 55 per cent to Rs 549 crore on year-on-year (YoY) basis while payment services to merchants went up by 56 per cent to Rs 624 crore YoY.

The company's net payment margin (calculated as payments revenues plus other operating revenues, less payment processing cost) increased multi-fold to Rs 443 crore on year-on-year basis on account of improved monetisation and continued focus on reduction in payment processing charges.

The company's revenue from the financial services business was up 293 per cent to Rs 349 crore on YoY basis and now accounts for 18 per cent of total revenue, compared to 8 per cent in September 2021 quarter.

The average monthly transacting users (MTU) grew 39 per cent YoY to 7.97 crore while the merchant base has increased to 2.95 crore, the company said.

Click Here For Latest Updates On Stock Market | Zee Business Live

With PIT inputs