A Macquarie Capital Securities (India) Pvt. analyst who was early to foresee Paytm market woes has slashed its price objective for the Indian digital payments start-up’s shares by 71 percent since its November market debut.
According to Suresh Ganapathy, a Macquarie analyst, the company’s pricing estimate has been reduced from 700 rupees ($5.90) to 450 rupees ($5.90). In fact, he hasn’t changed his Paytm sales or profit forecasts. On Wednesday, the share price reached 634.05 rupees.
Paytm’s initial public offering in India was the biggest ever, but the company has subsequently suffered a number of hurdles.
The Reserve Bank of India on Friday restricted the company’s Paytm Payments Bank from taking new clients, putting pressure on the stock. Ganapathy mentioned fintech laws and higher compliance rules as possible impediments.
According to statistics gathered by Bloomberg, the average 12-month price estimate for nine analysts covering Paytm is 1,203 rupees.
Investors searching for an alternative to China was quick to point to Paytm’s parent firm One 97 Communications Ltd. as evidence of India’s rising attractiveness as a global capital destination.
The average 12-month price target among nine analysts covering Paytm is Rs 1,203, according to data compiled by Bloomberg.
Ahead of the listing, Macquarie analysts including Ganapathy initiated coverage with an underperform rating and a price target of Rs 1,200. The IPO was priced at Rs 2,150.
Published by : Aditya Andharia
Edited By : Kritika Kashyap
