Paytm rises nearly 3% after Macquarie gives buy rating to fintech firm

Paytm Share Price: Shares of One 97 Communications Ltd, the parent company of Paytm, jumped higher on BSE on Monday (December 18, 2023) after the renowned global brokerage Macquarie advised to buy the stock with a target price of Rs 900. 

The Paytm stock was trading higher by 2.83 per cent, or Rs 17.15, at Rs 623.00 at 10:20 am on Monday.

The market cap of the company at the time of writing the report stood at Rs 39,549.46 crore.

What Macquarie says about Paym

Macquarie has given a 'buy' rating to PayTM with a target price of Rs 900.

Macquarie's rating is based on its discussions with PayTM management.

A few days ago, after the RBI tightened the rules on consumer lending, Paytm had announced to stop doing small loans.

As a result, its stock dipped. 

However Macquarie says, after talking to One 97 Communications Ltd management, that making changes to the lending portfolio was based on the situation's pre-estimate.

Paytm is not worried about asset quality of the loan segment or postpaid, Macquarie says in its report.

The fintech company says due to the short duration of post-paid loan, the impact will not be much.

Post paid loan tenure is only 30 days.

Paytm says it is also not worried about merchants and customers in the payments space and it will remain afloat.

Paytm's 52-week high is Rs 998.30, while its 52-week low is Rs 472.