Paytm's Shares Plunge As Brokerage Firm Cuts Target Price

Published:Nov 29, 202308:09
Paytm's Shares Plunge As Brokerage Firm Cuts Target Price

Paytm's Shares Plunge As Brokerage Firm Cuts Target Price

Paytm's shares plunged on Monday after brokerage agency Macquarie minimize its goal value

Shares of One97 Communications, the mum or dad entity of online funds platform Paytm plunged on Monday and ended at Rs 1,159, falling 5.89 per cent or Rs 72.60 over the earlier shut of Rs 1,230, as brokerage agency Macquarie in its report on the corporate, set the goal value for its shares at Rs 900. The agency additionally gave the corporate and "UnderPerformance" score."Post the various business updates and results, we believe our revenue projections, particularly on the distribution side, is at risk and hence we pare down our revenue CAGR from 26 per cent to 23 per cent for FY21-26E," mentioned Macquarie analysts Suresh Ganapathy and Param Subramanian."We are roughly chopping income estimates for FY21-26E on a mean by 10 per cent yearly as a result of decrease distribution and commerce/cloud revenues offset partially by increased fee revenues. We minimize our earnings (improve our loss projections) by 16-27 per cent for FY22-25E owing to decrease revenues and better worker and software program bills,” they added.Macquarie minimize the goal value sharply by almost 25 per cent owing to decrease goal a number of of 11.5x (Price to Sales ratio) (from 13.5x earlier) and decrease gross sales numbers. “We maintain UnderPerformance with a revised target price of Rs 900,” the brokerage agency mentioned.

To stay updated with the latest Bollywood news, follow us on Instagram and Twitter and visit Socially Keeda, which is updated daily.

sociallykeeda profile photo

SociallyKeeda: Latest News and events across the globe, providing information on the topics including Sports, Entertainment, India and world news.