Paytm share price touches new all-time low, corrects 34% in a month; ICICI Securities says this about this stock

One97 Communications-backed Paytm shares extended its losses on Tuesday as the stock touched a new all-time low to Rs 541.15 per share, down almost 4 per cent on the BSE intraday. The counter in the last one month slipped around 34 per cent versus 1 per cent rise in the BSE Sensex. 

The stock had hit a record high of Rs 1,961.05 per share on November 18, 2021, during its market debut and was listed at discount of over 9 per cent at Rs 1950 per share as compared to the issue price of Rs 2150 per share. It has corrected nearly 75 per cent from issue price on the BSE.

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ICICI Securities in a note said, “We were estimating Paytm’s consumer base to grow by 10 per cent in FY23E and monthly transacting users to increase at over 25 per cent run-rate.” 

The new-gen tech company will have to increase its efforts to enhance engagement with the existing user base to offset the adverse impact of embargo on new users, the brokerage added. 

ICICI Securities expecting moderation in onboarding of new users and the adverse impact on incremental payment revenue, as wallets are key monetisable payment instrument. And, it sets a target price to Rs 1,285 per share, while maintaining a Buy rating on the stock. 

 On March 11, 2022, the Reserve Bank of India (RBI) barred Paytm Payments Bank (PPBL), a subsidiary of One-97 Communications, from onboarding new customers effective immediately amid certain supervisory concerns and directed it to appoint an IT audit firm for conducting a comprehensive system audit of its IT system.  

Paytm in reply through an exchange filing has said that PPBL, was taking immediate steps to comply with RBI directions and was looking to appoint a reputed external auditor to conduct a comprehensive systems audit of its IT systems.