One97 Communications’, the parent company of digital payments major Paytm, share price tanked to a fresh record low of Rs 616.55 apiece on Tuesday, leading to Paytm dropping out of the BSE top 100-most valued companies by market capitalisation. The stock has crashed 60 per cent in less than four months since stock market debut, and 71 per cent from the IPO price of Rs 2,150 apiece. The fall in the share price was extended after the Reserve Bank of India (RBI) barred Paytm Payments Bank Ltd from onboarding new customers.This stock is in bearish trend after RBI banned Paytm Bank.
“It may go down further as the trend is bearish. It may test 550 to 500 levels,” Anuj Gupta, Vice President, IIFL Securities, told FinancialExpress.com. In the traded volume terms, 13.37 lakh shares traded on BSE, while 1.62 crore shares exchanged hands on NSE, so far in the day. Analysts said that the recent ban by RBI on Paytm to onboard new customers has added more panic towards its business sentiments.
Paytm stock may touch Rs 500 level in near-term
“This has refuelled the negative impact and increased the selling pressure in the stock. However, Paytm has already onboarded a very large customer base onto the payments bank but the ban may affect their chances of upgrading to a small finance bank,” Ravi Singh, VP & Head of Research, Share India Securities, told FinancialExpress.com. Singh added that on technical setup, the stock is in bearish trend both on intraday and daily basis and may touch the levels of Rs 500 in near term.
Avoid Paytm stock till there is clarity about profit generation
Likhita Chepa, Senior Research Analyst at CapitalVia Global Research, advised investors to stay away from the Paytm stock as there is no clarity as to when the company could be able to generate profit. Also, with increasing competition it will be difficult for the company to make profits at this time. “It has been witnessed that the losses of the company have widened, and it seems like the company is unable to see its way back. RBI has also ordered Paytm to stop boarding new customers which has also badly affected the already beaten stock,” Chepa added.
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