Paytm share price rises 21% in 4 days; Is the worst over for stocks? , india business news
paytm share price today:’s shares One 97 CommunicationsThe parent company of Paytm surged 5% on Wednesday to hit the upper circuit level of Rs 395.25 on the Bombay Stock Exchange (BSE). investors are optimistic regulatory crisis That appears to be diminishing, resulting in a 21% increase in the stock price over the past four days.
As of 12:33 pm, One 97 Communications stock was trading at Rs 395.25, up 4.99% on the BSE.
“Given the still weak valuations and the removal of a key regulatory overhang, we see considerable bullishness and maintain our outperform rating with a target price of Rs 600,” ET quoted Pranav Gundlapalle, an analyst at Bernstein, as saying. ” He explained that regulatory actions primarily affect Paytm Payments Bank (PPBL) and expects the company to successfully implement operational changes to reduce dependence on PPBL with minimal long-term impact on the overall business.
Read this also Paytm Payments Bank crisis: RBI issues FAQs for customers – All queries answered on UPI, Fastag, Paytm Wallet; check full list
Since PPBL’s products like Wallet and Fastag are expected to be discontinued, the brokerage predicts a 5% decline in payments GMV and a possible worst impact of 4 bps on payment processing margins, which currently stands at 9 bps. It is believed that shifting to a non-PPBL partner will not lead to significant changes in economics for Paytm.
Gundlapalle further said, “Our analysis of app traffic data indicates a 10% reduction in traffic, and we expect limited loss to the long-term user/merchant base.”
Jefferies has moved Paytm to its list of ‘non-rated’ stocks, while Morgan Stanley has retained equal-weight rating with a target price of Rs 555.
After hitting an all-time low of Rs 318.35 last Friday morning, the stock is up nearly 24%.
Last week, reserve Bank of India (RBI) has extended the ban on core banking and wallet operations of Paytm Payments Bank, except nodal accounts, by 15 days. The regulator also clarified that the services of merchants using Paytm QR Code, Paytm Soundbox or Paytm POS terminals will not be affected even after mid-March 2024, if their linked accounts are with any bank other than PPBL.
As of 12:33 pm, One 97 Communications stock was trading at Rs 395.25, up 4.99% on the BSE.
“Given the still weak valuations and the removal of a key regulatory overhang, we see considerable bullishness and maintain our outperform rating with a target price of Rs 600,” ET quoted Pranav Gundlapalle, an analyst at Bernstein, as saying. ” He explained that regulatory actions primarily affect Paytm Payments Bank (PPBL) and expects the company to successfully implement operational changes to reduce dependence on PPBL with minimal long-term impact on the overall business.
Read this also Paytm Payments Bank crisis: RBI issues FAQs for customers – All queries answered on UPI, Fastag, Paytm Wallet; check full list
Since PPBL’s products like Wallet and Fastag are expected to be discontinued, the brokerage predicts a 5% decline in payments GMV and a possible worst impact of 4 bps on payment processing margins, which currently stands at 9 bps. It is believed that shifting to a non-PPBL partner will not lead to significant changes in economics for Paytm.
Gundlapalle further said, “Our analysis of app traffic data indicates a 10% reduction in traffic, and we expect limited loss to the long-term user/merchant base.”
Jefferies has moved Paytm to its list of ‘non-rated’ stocks, while Morgan Stanley has retained equal-weight rating with a target price of Rs 555.
After hitting an all-time low of Rs 318.35 last Friday morning, the stock is up nearly 24%.
Last week, reserve Bank of India (RBI) has extended the ban on core banking and wallet operations of Paytm Payments Bank, except nodal accounts, by 15 days. The regulator also clarified that the services of merchants using Paytm QR Code, Paytm Soundbox or Paytm POS terminals will not be affected even after mid-March 2024, if their linked accounts are with any bank other than PPBL.
