: Paytm’s stock closed with a gain of 10%, will the market listen to the CEO of Paytm?

Paytm Target Price: After the listing on the stock exchanges, there was a big fall in the share of Paytm in two trading sessions. But Tuesday has proved to be very auspicious for Paytm. The trend of decline in the stock of Paytm has finally come to an end. Due to the buying by the investors, the stock of Paytm saw a great recovery today. At the close of the market, Paytm has closed at Rs 1495 with a gain of 10 percent.

Paytm trading below the issue price

But the share of Paytm is still trading well below its issue price of Rs 2150. Investors who have invested in Paytm’s IPO are still incurring significant losses. Paytm’s market capitalization is still less than Rs 1 lakh crore to close to Rs 97,000 crore. In fact, many market experts are not very familiar with Paytm’s business model because Paytm is the first fintech company of its kind to be listed in the market.

Vijay Shekhar Sharma has confidence

Paytm CEO Vijay Shekhar Sharma believes that it will take time for the market and investors to understand Paytm’s business model. According to him, the company is in the business of insurance to wealth creation, which is a new experience for the stock market. Gradually, with the passage of time, investors will understand the business model of Paytm.

The trend of brokerage houses is negative

In fact, since the day Paytm was listed in the market, the stock of Paytm fell flat. Many market experts strongly criticized the merchant bankers of Paytm for keeping the issue price of Paytm IPO so expensive. Many brokerage houses have reduced the target price of Paytm. Foreign brokerage house Macquarie reduced the target of Paytm to Rs 1200. Which is about 44 percent below the issue price. According to Macquarie, Paytm’s business model lacks direction. According to him, making profit is a big challenge for Paytm.

Market will understand the value of Paytm one day

However, Vijay Shekhar Sharma had said on the day of Paytm’s listing that the business that Paytm is in has immense potential. The capabilities of Paytm cannot be judged on the basis of its share price today or tomorrow. There is a big opportunity in front of this payment company. And I know that the stock market will definitely understand our business model in the coming times.

However, Paytm is still trading 30 per cent below its issue price. It has to cover a long distance to reach its issue price. And all this will depend on the attitude of the investors regarding Paytm.

Disclaimer: (The information provided here is for informational purposes only. It is important to mention here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. Anyone from ABPLive.com Also investing money is never advised here.)

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