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    Paytm shares struggle near Rs 900-mark; what should investors do now?

    Paytm shares struggle near Rs 900-mark; what should investors do now?

    Paytm shares struggle near Rs 900-mark; what should investors do now?
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    By CNBCTV18.com  IST (Updated)

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    Paytm share price: Paytm parent One97 Communications' shares succumbed to selling pressure on Thursday, not far from a 52-week low of Rs 875.5 hit on Tuesday.

    Paytm parent One97 Communications' shares hovered around the Rs 900-mark on Thursday, as most new-age business stocks remained under sustained selling pressure. On BSE, Paytm shares fell as much as 3.9 percent to Rs 880 during the session before recovering some of those losses.
    The Paytm stock settled at Rs 893.4 apiece for the day, down 2.4 percent from its previous close. The stock was not far from a 52-week low of Rs 875.5, hit on Tuesday.
    New age company stocks such as Paytm are mirroring the trend on the Nasdaq, where investors have lost appetite for tech companies.

    EXPLAINED

    Paytm shares have hit a series of lows in 2022 so far. At Thursday's intraday low, the stock shares changed hands at a discount of 59 percent to the issue price.
    Many experts are sceptical on new-age company stocks such as Paytm, Zomato, CarTrade and PB Fintech, which have recently hit their lowest levels since listing in 2021, a year that saw most new Dalal Street entrants enjoy a robust investor response.
    Market veteran Shankar Sharma told CNBC-TV18 this week that one should not be surprised if shares of new-age companies fall 80-90 percent by the end of the year. "Almost all of them are completely and totally devoid of any valuation merit. Their business models are commoditised, there is nothing unique about any of the companies that have got these crazy valuations," he said.
    However, Nirmal Bang Institutional Equities CEO Rahul Arora is more optimistic on Paytm. He said in an interview to CNBC-TV18 that the One97 stock could give a relief rally after correction.


    In continuous pain for investors, Paytm shares have declined in the recent past despite the digital payment company's positive upbeat management commentary.
    On November 18, Paytm shares listed on stock exchanges BSE and NSE at a discount of around nine percent. Its IPO, though the biggest of all time in India, saw an overall booking of 1.9 times the shares on offer. The initial share sale failed to win the kind of investor interest enjoyed by most IPOs in the recent past. 


    One97 Communications is yet to report its quarterly earnings for the third quarter of FY22.
    For the quarter ended September 2021, Paytm reported an 8.3 percent year-on-year increase in net loss to Rs 473 crore, despite a 63.6 percent rise in revenue to Rs 1,086.4 crore.
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