Paytm Shares: Paytm Share Price NSE BSE India
The shares opened with gains at Rs 416.90 on BSE and within a few moments jumped 5 percent to Rs 427.95. At this level the stock has entered upper circuit. Last week, RBI (Reserve Bank of India) had asked NPCI (National Payments Corporation of India) to explore the possibility of Paytm’s request to become a Third-Party App Provider (TPAP). If Paytm app gets this approval then it will continue to provide UPI services like Google Pay, Amazon Pay. After this, Morgan Stanley has maintained equal weight call on Paytm stock with a target price of Rs 555 per share. These developments are the important reasons behind the increased confidence of investors in Paytm shares.
Key Points
HDFC and Yes Bank apply to replace Paytm Payments Bank with TPAP
Paytm had earlier applied to NPCI in collaboration with Axis Bank to act as a third-party application provider for UPI business. But there is also news that HDFC Bank and Yes Bank have also applied with Paytm. RBI has barred Paytm Payments Bank from accepting money in its customer accounts and wallets after March 15, 2024.
The stock’s 52-week high is Rs 998.30 and low is Rs 318.35. Lower price band is Rs 387.25 with 5% decline. The market cap of the company is more than Rs 27000 crore. Paytm’s stock has suffered a lot after the RBI action on Paytm Payments Bank on January 31. Last week, the stock hit upper circuit in four trading sessions, due to which there has been a recovery in the stock. Paytm shares have fallen 43 percent in the last one month.
Investors are waiting to hear from NPCI and Paytm about how Paytm’s business might be affected in February 2024.
At the same time, an advisory committee, created by One97 Communications after RBI acted on its payments bank business, hasn’t had a detailed discussion with the company yet. The head of the panel, M Damodaran, who used to be the chairman of Sebi, mentioned this on February 25th.
The RBI, which is like the bank for all other banks in India, has made some new rules after dealing with Paytm Payments Bank. These rules are meant to help people who use the ‘@paytm’ service and to reduce the risk of relying too much on just one payment app in India. Paytm Payments Bank is not allowed to add any more money to its customers’ accounts or wallets after March 15, 2024.
What does the other brokerage think about Paytm’s shares?
Gave ‘neutral’ rating on the stock and reduced the target price to Rs 450 per share from earlier Rs 860 per share. Analysts at Goldman Sachs have cut revenue estimates and adjusted EBITDA estimates for FY24E-26 by 36 per cent and 80 per cent, respectively. He believes that the company’s revenue for fiscal year 2025 will decline by 21 percent on an annual basis. Jefferies has put Paytm stock in the list of ‘non-rated’ stocks.
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