Paytm Hits Fresh Record Low After Macquarie Slashes Target Price By 58%
Macquarie has cut the target price to Rs 275 per share from Rs 650 apiece earlier due to a sharp reduction in revenues across various segments.
![<div class="paragraphs"><p>Paytm QR code for UPI payments is displayed at a vegetable stall in Mumbai. (Source: Usha Kunji/NDTV Profit)</p></div>](https://media.assettype.com/bloombergquint%2F2023-12%2Ff71bb90e-0b27-4305-9b27-5f7b6dfcb872%2FPaytm___Photo_Usha_Kunji_Source_BQ_Prime_.jpeg?rect=0%2C0%2C1058%2C595&auto=format%2Ccompress&w=200)
Shares of One 97 Communications Ltd., the parent of Paytm, hit fresh record lows on Tuesday after Macquarie Equity Research slashed its target price by 58% and downgraded it to 'underperform'.
Macquarie has cut the target price to Rs 275 per share from Rs 650 apiece earlier due to a sharp reduction in revenues across various segments. It has also cut revenues sharply as it reduced both payments and distribution business revenues.
![Paytm Hits Fresh Record Low After Macquarie Slashes Target Price By 58%](https://media.assettype.com/bloombergquint%2F2024-02%2Fdc867629-8988-4b02-9a7f-e89d9a1faa15%2FPAYTM__4_.png?auto=format%2Ccompress)
Shares of the company fell as much as 8.51% to Rs 386.25 apiece, hitting an all-time low. The stock last hit an all-time high on Feb. 6. It pared losses to trade 6.05% lower at Rs 396.65 apiece as of 9:27 a.m. This compares to a 0.10% decline in the NSE Nifty 50 Index.
It has fallen by 81.55% in the past 12 months. Total traded volume so far in the day stood at 0.3 times its 30-day average. The relative strength index was at 24, indicating it was underbought.
Out of 15 analysts tracking the company, six maintain a 'buy' rating, three recommend a 'hold', and six suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 38.4%.