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Paytm Falls 3% After Hitting Upper Circuit For Four Sessions

Inc42Inc42 · 10m
Paytm Falls 3% After Hitting Upper Circuit For Four Sessions

Shares of One97 Communications, the parent company of Paytm, declined by 3.74% to INR 380.45 following a 'neutral' rating and lowered target price by Goldman Sachs. The rating cut reflects concerns about potential market share loss in the payments sector after the RBI imposed strict restrictions on Paytm Payments Bank. Analysts at Goldman Sachs have reduced revenue and adjusted EBITDA estimates for FY24E-26 by up to 36% and 80% respectively, predicting a 21% decline in FY25 revenues. However, the recent positive developments, including RBI extending the business restrictions deadline and news of relocating the nodal account to Axis Bank, gave a boost to shareholder optimism. Investigations on possible foreign exchange violations by the Enforcement Directorate have not yet found any breaches.

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