Following action from the RBI against Paytm Payments Bank, Paytm's parent company One97 Communications has been in the limelight on Dalal Street for quite some time. The central bank had ordered the closure of Paytm Payments Bank due to non-compliance, which led to a significant decline in the shares of Paytm (Paytm Share).
Even on Friday, there was a decline of more than 1% in its shares, and now they are priced at ₹406 per share. Meanwhile, the brokerage firm Motilal Oswal Financial Services has shared its outlook on Paytm shares (Paytm Share Price). The brokerage has stated that the restrictions have put the company at risk of losing customers and merchants, which has impeded its growth.
Expecting a 30% Decline in Profit
Domestic brokerage believes that the closure of Paytm's Wallet and FASTag services could result in a decrease in customer numbers by March 2024, affecting the business. In addition, the company's revenue, margins, and profits are expected to decline. The brokerage platform has predicted that FY25E revenue will fall by 24 percent, and profits by 30 percent. We estimate a 51 percent margin for FY25E compared to.
A 30% Leap from the Lower Level
Paytm's shares have jumped nearly 30 percent from its 52-week low of ₹318.35. Its 52-week high level is ₹998.30 per share. Over a three-month period, the shares have decreased by 37%, and over six months, they have fallen by 52.44%.
Will Paytm Shares Reach ₹530?
Motilal Oswal has revised the target for Paytm shares (Paytm Share Price Target) to ₹530. The brokerage firm will revisit its ratings after the fourth-quarter results. Brokerage sees up to a 30 percent increase from its previous closing price. Yes Securities recently set a buy target for Paytm at ₹505. Additionally, Morgan Stanley has set a target of ₹555 per share for it.
