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Shares of One 97 Communications Ltd, owner of fintech platform Paytm, fell as much as 3 per cent on Thursday (February 22) after brokerage firm Goldman Sachs put a ‘neutral rating’ on the stock and cut the target price from Rs 860 to Rs 450. The reason stands that Goldman Sachs is anticipating a slowdown in the company’s lending.
Shares of One 97 Communications are trading 1.50 points, or 0.44 per cent in green at 396.80 at 11 am. The company has faced its worst crisis since its listing after RBI’s January 31 action.
Earlier, Paytm shares hit 5 per cent upper circuit during three consecutive trading sessions. The shares closed at Rs 376 a piece on Wednesday (February 21).
Analysts at Goldman Sachs have decreased revenue and adjusted EBITDA estimates of the company by up to 36 percent and 80 percent, respectively for FY24E-26. They now expect FY25 revenues to decline by 21 percent on-year (YoY).
Paytm stock has, however, rebounded to trade 24 percent above the 52-week low of Rs 318 that it hit on February 16. However, the stock is still trading 48 percent below the January 31 closing price of Rs 761.20.
Goldman Sachs anticipates a slowdown in lending in the near term due to RBI’s restriction on Paytm Payments Bank (PPBL).
