Macquarie cuts Paytm price target by 57%, cites low revenue

Macquarie cuts Paytm price target by 57%, cites low revenue

Mumbai: Brokerage Macquarie slashed its price target on One97 Communications, parent of Paytm, to ₹275 from ₹650 citing a sharp reduction in revenues across various business segments after the Reserve Bank of India’s recent decision barring subsidiary Paytm Payments Bank to stop offering its key services after February 29. The stock plunged 10%, its lowest tradeable limit of the day, to ₹380 on Tuesday.

“Post the recent regulatory changes and diktats, Paytm now faces a serious risk of an exodus of customers which significantly jeopardises its monetisation as well as its business model,” said Macquarie on Monday, while downgrading its rating on the stock to underperform.

The brokerage said some of Paytm’s existing lending partners may take a re-look at their business links with the firm, which may potentially hurt its lending business revenues.

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