Paytm Shares Plummet 50% in 2024: Analysts Weigh In

Paytm’s stock has faced significant downward pressure following the Reserve Bank’s announcement of restrictions on Paytm Payments’ operations.

These restrictions stem from ongoing issues related to non-compliance with regulatory requirements and persistent material supervisory concerns.

Shares of One 97 Communications Ltd, the parent company of Paytm, have experienced a sharp decline of 49.69% on a year-to-date (YTD) basis. Today, the stock plummeted by 5%, reaching a one-year low of Rs 325.25.

In response to the heightened volatility surrounding Paytm’s stock after the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank, exchanges have revised the circuit filter for the stock lower to 5% from the previous 10%. This adjustment follows an earlier reduction in the circuit limit from 20% to 10% due to significant fluctuations in the stock price.

Paytm’s stock has faced significant pressure following the Reserve Bank’s announcement of restrictions on Paytm Payments’ operations. These restrictions were imposed due to ongoing issues related to non-compliance with regulatory requirements and persistent material supervisory concerns.

Analysts have generally taken a cautious stance on Paytm’s stock. Gaurang Shah, Senior VP at Geojit Financial, advised investors to wait for clarity before making any decisions. He suggested that the stock might be influenced by market rumors, so it’s prudent to wait for the situation to stabilize before considering any action.

“Paytm’s stock has experienced a significant downturn over the past two weeks, indicating a notably weak trend. With a bearish outlook maintained, we anticipate further declines in the upcoming days. The next support level is situated near Rs 302.

To instill some confidence and potentially alter the current bias, the stock would need to convincingly surpass the Rs 430 zone. At present, it is advisable to exercise caution and refrain from investing in this stock until there is substantial confirmation of a revival,” stated Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.

“Retail investors may want to steer clear of this stock presently due to its high volatility,” advised Rajesh Palviya, Head Technical Research at Axis Securities.

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