Mumbai: Paytm ONE97 Communication Master Stocks tend to decrease on Monday after the Reserve Bank of India Friday Barred Paytm Payment Bank from adding new customers because of the possibility of a gap in the technology system.
Analysts said this tended to place obstacles in the aspirations of the company’s small financial banks. “Stock can see the gap down,” said Independent Market Expert AmbareSh Biga. “The direct impact will be negative because they cannot wear new customers. It also speaks volume about internal control, especially the new customer boarding process.”
Last year, Paytm launched India’s biggest initial public offering of ₹ 18.300 crore. Since the list, the stock has a downward trend due to the assessment problem. Stok closed on ₹ 776.15 on Friday with IPO prices ₹ 250. Low record is ₹ 728.50. Analysts are also worried that profitability may remain difficult to understand for a longer period.
“Sentiment has been affected since the IPO because of the assessment, this is another negative because it can also influence their chances of improving to small financial banks,” Baliga said.
Compared to IPO assessments ₹ 1.5 lakh crore, rating stock now just a little more than ₹ 50,000 crore.
“The biggest problem is they want to file a SFB license, I don’t think it will come or at all,” said Kush Katakia, CEO on Beansttralk Advisory. “Even on ₹ 50,000 crore, this problem will appear,” said said.
Macquarie said it did not expect an impact on the business to Paytm from this prohibition to be substantial because it has risen a very large customer base to the bank payment but there is a possibility that it would be a significant impact on the paytm brand and future customer loyalty. It has poor performance with a target procedure ₹ 700.
ICICI Securities estimates the Paytm consumer base to grow by 10% on FY23 and monthly transaction users to increase more than 25% run. Broker Cut Target Prices Until ₹ 1,285 of ₹ 1,352, maintaining a purchase rating, because it expects moderations on onboarding new users and adverse effects on gradual payment income.
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