Paytm’s shares hit an all time low mark after Macquarie Targets INR 900
- ByTejika Bajaj | January 11, 2022
The fintech giant Paytm’s parent company One97 Communications which has observed the brutality of the stock market post a devastating stock market debut, has now observed a further black cloud over its listing. Paytm’s shares have registered an all time low mark to INR 1151 apiece as against its issue price of INR 2150.
The shares therefore have observed a 6.6 per cent decline in the share price thus marking an all time low mark for the fintech giant’s listing. The major reason for a massive decline happens to be Macquerie’s announcement to lower its targeted stock price from INR 1200 to INR 900 per share.
The brokerage has retained its underperform rating for Paytm’s shares, thereby raising its loss projections for the unicorn by 16-27 per cent for FY 22-25 owing to lower revenue and higher employees as well as software costs.
Furthermore, Macquarie has revised its compounded annual growth rate for revenue (CAGR) estimate for Paytm to 23 percent for the FY 21-26 as against the earlier estimate of 26 per cent. After various business updates and earnings, Macquarie said, its revenue projections particularly on the distribution side are at risk.
“We are roughly cutting revenue estimates for FY 21-26 on an average by 10 percent every year due to lower distribution and commerce/Cloud revenues offset partially by higher payment revenues,”stated the company officials of Macquarie, adding that several regulatory and business-specific challenges exist for the company.
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