The share price of One 97 Communications, the parent company of digital payments firm Paytm, plunged 20% to Rs 650.45 dragging the stock lower by -162.60 points.
The sharp single-day decline comes on the back of Paytm’s move to downsize its exposure to small-ticket loans and recalibrate its BNPL offerings. This strategic shift prompted analysts to downgrade their recommendations and lop off price targets.
Goldman Sachs downgraded Paytm to ‘neutral’ from ‘buy’ earlier and reduced its target price drastically to Rs 840 from Rs 1,250 previously. Similarly, Jefferies maintained its ‘buy’ rating but trimmed its target to Rs 1,050 from Rs 1,300.
Paytm’s stock had fallen over 3% in the previous session as its Postpaid service faced temporary disruption before being restored. Moreover, CLSA’s comments around an RBI policy negative for fintech companies also spooked investor sentiment.
The developments have raised doubts regarding Paytm’s growth trajectory in the wake of its realignment in the lending segment. Investors are advised caution amid the bearish expert outlook.
