Since its listing in November, the shares of One-97 Communications-backed Paytm have been on a roller-coaster ride. The counter hits a new 52-week low to Rs 1151 per share, after slipping over 6.5 per cent on the BSE intraday trade on Monday. 

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The stock reported weakness on the back of underperforming rating report on the stock by global brokerage firm Macquarie, accessed by Zee Business research team. It states that the share price of the company to reduce to three digits to Rs 900 per share from four digits Rs 1200 per share earlier.  

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“Earnings slashed by 16-27 per cent in FY22-5E due to fall in sales and price to sales ratio, also decreased from 13.5x to 11.5x,” the brokerage said in a report.  

Citing the reasons for downsizing the stock, Macquarie said, “There are many regulatory and business-related challenges and a possibility of cap on wallet charges due to the Reserve Bank of India’s digital payment regulations.” 

Other reasons such as the resignation of many senior executives is a matter of concern for Paytm, while the average ticket size of loan disbursement is also a matter of concern, the brokerage house said, as most of the loans are small value BNPL (Buy Now Pay Later) loans 

Moreover, the brokerage in its report also said, the earnings estimate was reduced due to fear of lower distribution fees by the company. 

This is the third such report on the share price of Paytm by Macquarie that has created a dent in the stock. The scrip was listed at a 9 per cent discount on November 18, 2021 at Rs 1950 per share as compared to the issue price of Rs 2150 per share.  

Paytm shares have been corrected to almost 41 per cent from listing price and over 46 per cent from the issue price. The stock has touched Rs 1961 per share levels as an all-time high on the listing day.