Paytm share price today on Feb 20: Stocks continue to fall; Investors under pressure

Paytm share price today: The shares of payment platform Paytm are continuing to fall, due to which investors are starting to worry. On Wednesday, the company’s shares witnessed a severe lower circuit of 10 per cent, setting a new all-time low of Rs 344.1.

Paytm share price today

However, there was a slight recovery later and by around 10:11 AM, Paytm shares were trading at Rs 343.6, showing a decline of 9.6 per cent. This huge decline of around 55 per cent is mainly due to the regulatory constraints imposed by the Reserve Bank of India (RBI) on the company’s subsidiary Paytm Payments Bank.

Paytm share price today: In response to the crisis in Paytm’s stock price, RBI Governor Shaktikanta Das said that this decision is final regarding regulatory action against the company and there will be no further review on it. Das said that RBI takes any action only after proper investigation.

Read also: Yes Bank Share Price on Feb 20; After two days of decline stock show some positive move

Paytm shares had reached a peak of Rs 998.3 in October last year, but within just three months the stock saw a huge fall of 65.5 percent. Comparatively speaking, the stock saw a huge decline of 85 percent from its issue price of Rs 2,150.

Paytm share price today: Recently, global brokerage company Macquarie has given ‘underperform’ rating to Paytm with a target price of Rs 275, which is a matter of concern for the company.

Macquarie’s downgrade is based on three important factors:

  • Paytm is at risk of losing a large number of customers following the RBI action, posing a serious threat to its monetization and business model.
  • The brokerage firm has revised its loss estimates for FY25E and FY26E by 170 per cent and 40 per cent respectively, taking into account the sharp decline in revenues due to lower payment and distribution revenues.
  • Macquarie has assumed a 50 per cent cash burn rate and applied a 20x P/E multiple to normalize earnings from Paytm’s delivery business.

Paytm share price today:  In view of all this, experts advise to exercise caution and not to invest in Paytm shares and avoid speculative activities in the market. The future of the company remains uncertain.

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