14 Jan , 2022 By : Kanchan Joshi
Shares of Paytm rebounded in Friday's early deals after declining to as low as Rs995 in opening trade. The stock of the digital payments and financial services firm was trading over 2% higher at Rs1,056 per share on the BSE, recovering around 6% from day's low. Though, Paytm shares are still down over 50% from its initial public offering (IPO) issue price of Rs2,150 amid a spate of bearish views.
The company had recorded over 4-fold jump in loan disbursals during the October-December 2021 period with 44 lakh loans worth Rs2,180 crore disbursed from its platform as against 8.81 lakh loans worth Rs470 crore in the year-ago period.
“Paytm share is trying to find a base after a continuous fall. Recent announcements by the company on the business growth also haven't helped the stock. It will require a die-hard believer in the business potential of Paytm to buy the stock through this correction. We believe that the company needs to communicate a clear path to profitability to investors rather than leaving it to their imagination. Failing that, it is difficult to see a quick end to this price fall," said Abhay Agarwal, Founder and fund manager at Piper Serica, SEBI Regd. PMS.
One 97 Communications Ltd, Paytm’s parent company, raised $2.5 billion in its IPO, but a 27% plunge in its November 18, 2021 debut made it one of the worst initial showings by a major technology firm since the dot-com bubble era of the late 1990s.
Paytm stock looks good, said Ravi Singhal, Vice Chairman at GCL Securities as h highlighted the RSI (relative strength index) is over sold on hourly chart. Singhal has advised the investors to keep a possible target price of Rs1,200 and stop loss of Rs999.