Paytm shares hit new all-time low, closes below Rs 1000; stock down nearly 50% since listing

The digital payments company One-97 Communications-backed Paytm touched a new record low of on Wednesday, falling below Rs 1000 per share levels for the first time since listing. The stock fell by 5 per cent to Rs 990 per share on the BSE intraday trade today. 

Since the negative report of global brokerage firm Macquarie on Paytm, the counter has been on a declining trend and has corrected around 26 per cent in the last three-week on the BSE. The stock is around Rs 100 away from hitting brokerage firm Macquarie's target price of Rs 900 apiece. 

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Paytm had launched the biggest initial public offer (IPO) in a decade with an issue price of Rs 18,300 crore, and since its listing on November 18, 2021, the counter has declined 54 per cent against the issue price of Rs 2,150 apiece and almost 50 per cent from listing price of Rs 1950 apiece. 

At around 02:50 pm, Paytm shares have been trading almost 4 per cent lower at Rs 1001 per share, as compared to a nearly 1 per cent decline in the S&P BSE Sensex.  

On January 10, 2022, Macquarie had come out with a report on One97 Communication maintaining an Underperform rating on the scrip and slashed its target price to Rs 900 per share, citing risks on its revenue projections, particularly on the distribution side. 

This is was the third such report of Macquarie on Paytm, as in the previous view, the brokerage had set a target price of Rs 1,200 per share in November, and had expected around a 44 per cent fall in the stock ahead of its listing in mid-November. 

“Post the various business updates and results, we believe our revenue projections, particularly on the distribution side, is at risk and, hence, we pare down our revenue CAGR (compound annual growth rate) from 26 per cent to 23 per cent for FY21-26E,” the brokerage firm had said in a report. 

“We are roughly cutting revenue estimates for FY21-26E on an average by 10 per cent every year due to lower distribution and commerce/cloud revenues offset partially by higher payment revenues,” Macquarie had added.