Paytm shares recover losses, stock surges nearly 30% in 2 straight sessions - what analysts suggest?
This is the fourth-trading session of the companys shares as it was listed at a discount of 9 per cent to Rs 1950 apiece on November 18, 2021.
Surging for the second straight session, the shares of One-97 Communications-backed Paytm increased around 18 per cent to Rs 1758 per share on the BSE intraday. This is the fourth-trading session of the company’s shares as it was listed at a discount of 9 per cent to Rs 1950 apiece on November 18, 2021.
The counter in the last two sessions have witnessed a buying interest from investors, as it surged around 30 per cent from Rs 1360 per share of Monday’s (November 22) closing. In comparison, the BSE Sensex has also been range-bound trading between 57200-58000 levels.
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In the first two sessions since its debut, the stock had corrected nearly 40 per cent, which is almost in line with the global brokerage firm Macquarie estimate. The brokerage had estimated the shares will see a correction of 44 per cent to Rs 1150 per share blaming the weak business model of Paytm.
Paytm had launched India’s largest initial public offer in a decade with an issue of Rs 18600 crore. It got listed on exchanges at Rs 1950 per share versus Rs 2150 per share at the upper-end price band.
The majority of the analysts, including Zee Business Managing Editor Anil Singhvi had predicted a weak listing for the Paytm shares. However, they suggest either wait for the opportunity to exit the counter or hold till the buying sentiment emerges in the stock.
Manoj Dalmia, Founder and Director, Proficient Equities had said, “Investors, who are stuck, should wait as there is a small buying being seen once. One may expect consolidation around the price of Rs 1200-1350 per share, which can be a buying opportunity considering base formation.”
Recommending to 'hold' for a few quarters and wait for expected results, he said, "This might trigger some buying action from FII, DII and price may rise. And, could be exited at a breakeven price.”
(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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