Business

Macquarie Downgrades Paytm Stock To Neutral from Outperform; Here’s Why

Following four months of giving a double upgrade to One 97 communications, the parent company of Paytm service providers, Global brokerage Macquarie’s analyst Suresh Ganapathy downgraded Paytm stock to ‘Neutral’ from ‘Outperform.’

During the month of February, Macquarie double-upgraded Paytm from ‘underperform’ to ‘outperform’. Additionally. it increased its price target from Rs 450 to Rs 800. Nevertheless, Macquarie has kept its price target for Paytm at Rs. 800 despite the downgrade to neutral.

In 2023, the stock experienced a sharp run-up that prompted Macquarie to downgrade the stock. Paytm stock has increased by almost 60% so far this year, compared to the Nifty 50’s 3% growth. The shares are still trading well below their IPO price of Rs 2,150 despite this increase. Another major factor in the downgrade is that the brokerage has highlighted future business and reputational risks for Paytm. Additionally, Macquarie anticipates that the volume of the lending business will fluctuate over time.

The stock is currently exposed to two significant overhangs and risk factors that are not favourable. One of the main dangers is that Ant Financial’s desire to sell a 25% stake in the company will probably put the stock under pressure. Any announcement concerning Jio Financial Service made at the Reliance Industries AGM could also pose a risk and serve as a negative catalyst.

One of the initial ratings given to Paytm was an ‘underperform’ rating with a price target of Rs 1,200. Later, the stock was downgraded to Rs 900, Rs 700, and even Rs 450 before being upgraded in February. Ten of the 13 analysts who follow Paytm currently recommend buying the stock, while only three still recommend holding. Even Dolat Capital Markets’ highest price target for the stock, Rs 1,260, is considerably less than the stock’s IPO price of Rs 2,150.

Also Read: Vodafone Idea in Talks with PE Firms as it Intends to Raise Rs 20,000 Crore

 

Malika Sahni

Recent Posts

India And Nigeria Strengthen Counter-Terrorism Cooperation In Second Strategic Dialogue

Doval and Ribadu held detailed talks on challenges linked to terrorism and radicalization, including those…

21 mins ago

Ola Electric’s Share Hits All-Time Low Of Rs 74 Ahead Of Q2 Results

Analysts predict that the stock could drop closer to the Rs 70 mark. Ola Electric…

1 hour ago

US Election: Voting Begins With First Ballots Cast In New Hampshire

This election is one of the most divisive in US history. Harris and Trump have…

2 hours ago

Waqf Bill: Opposition MPs Meet LS Speaker, Lodge Protest Against JPC Chairman Jagdambika Pal

Opposition members alleged that Pal calls JPC meetings without consulting them and restricts their opportunity…

2 hours ago

Delhi HC Rejects Khalid Saifi’s Plea To End Attempted Murder Case In 2020 Riots

The Delhi Police opposed Saifi’s bail, citing evidence from WhatsApp messages exchanged among the accused.…

3 hours ago

Maha Kumbh 2025: Uttar Pradesh Enhances Security With Face Recognition Cameras

To protect millions of devotees at Maha Kumbh, the UP govt is implementing advanced security…

3 hours ago