Paytm falls to 5% lower circuit again, stock down 50% from 52-week high

Paytm can retain a large part of its customer and merchant base post certain approvals from the National Payments Corporation of India (NPCI)

Paytm shares traded in the red for the third straight session on February 29. At 9:30am, the fintech stock was hovering on 5 percent lower circuit at Rs 385.90 on the National Stock Exchange (NSE). The counter lost 5 percent in the previous session as well.

The fall comes as investors remain unsettled despite Vijay Shekhar Sharma's resignation as part-time non-executive chairman and board member at Paytm Payments Bank.

The Paytm stock took a beating after the RBI crackdown on Payment Payments Bank on January 31. It tanked around 60 percent before recovering a bit by hitting the 5 percent upper circuit for several sessions back-to-back.

While Paytm has recouped losses to trade 20 percent above the 52-week low of Rs 318 hit on February 16, the stock is still around 50 percent below the January 31 closing price of Rs 761.20.

Morgan Stanley also maintained an 'equal-weight' call on the stock with a target price of Rs 555. Goldman Sachs has a 'neutral' rating on the stock with a revised target price of Rs 450, down from Rs 860 per share earlier. Another international brokerage, Jefferies, has discontinued its rating on Paytm and has moved the counter to its list of 'non-rated' stocks.

#Buzzing Stocks #One 97 Communications (Paytm) #PayTm #Paytm Payments Bank #Vijay Shekhar Sharma

Source: Money Control