After three straight sessions of hitting lower circuits, Paytm‘s share price showed some resilience on Tuesday. The fintech giant which had a great time at the bourses in 2023 has been facing tremendous pressure this year. The company’s market cap has eroded by around 40% since RBI announced its strict restrictions.
The Investment: If you invested ₹10,000 in Paytm on August 7, when the stock was trading at around ₹850, you would received around 11 shares of the company. Today, those 11 shares would be worth around ₹4,900.
Paytm’s Troubles: Ever since the payments giant made its debut on the stock market, it has been on a roller coaster ride. The stock currently trades around 80% lower than its IPO price of around ₹2,150. Last year, the company was seeing some signs of revival, it even reached close to the ₹1,000 mark in October last year.
While the stock showed some signs of revival in 2023, its start to 2024 has been nightmarish. Just in the last five sessions, the stock has slumped around 41%. Brokerages have also revised down their target prices for Paytm, with Jefferies downgrading the target to ₹500 and Macquarie reducing it to ₹650. JP Morgan also cut the price to ₹600.
Price Action: Paytm shares were up 3.65% to trade at ₹454.50 in the early hours of trading on Tuesday.
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