Curated By: Business Desk
Last Updated: December 11, 2023, 13:24 IST
Paytm unveiled its strategic plans for increased ticket-dimension loans.
Owing to the downfall within the share value, the analysts have both downgraded or minimize their value targets on the Paytm inventory over the following 12 months.
In what got here because the worst day for the corporate, the shares of One 97 Communications Ltd., the father or mother firm of funds platform Paytm, got here down in a decrease circuit of 20%. This is the worst fall the corporate has witnessed ever since its announcement to cut back small ticket loans, and amend its Buy Now and Pay Later (BNPL) enterprise.
Owing to the downfall within the share value, the analysts have both downgraded or minimize their value targets on the Paytm inventory over the following 12 months. On the opposite hand, Paytm, in a latest analyst name on Wednesday, unveiled its strategic plans to serve the rising demand for increased ticket-dimension loans. These ticket-dimension loans vary from Rs 3 lakh to Rs 7 lakh. Meanwhile, the corporate additionally highlighted the elevated demand for low-threat private loans and service provider loans.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, praised the latest strategic transfer adopted by Paytm. He implied the constructive affect of the transfer not just for the main funds platform but in addition for different non-banking monetary corporations (NBFCs) as properly.
He added, “There was some exaggeration in the reaction to what Paytm share prices did yesterday. What we generally see in the market is that the market reacts sharply either way, be it on the fear side or the greed side.”
Khemka additional acknowledged, “The adjustment pertains to a relatively small portion, around 4-5% of personal loans in the less than ₹50,000 category, and postpaid loans contribute insignificantly to the overall loan book, it sheds light on potential concerns regarding the disbursement of retail loans.”
Khemka lowered the goal value to ₹1,025 whereas highlighting its substantial upside from a one-12 months perspective on the identical time. Explaining the identical, he mentioned that Motilal Oswal maintains a constructive view on Paytm although it has lowered the goal value, which continues to be increased than the present degree.
