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.
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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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