Paytm Shares Plunge 21% from 52-Week High: Time to Buy or Sell?
10th Jan 2025
Paytm's Steep Decline from Recent Highs
Shares of One 97 Communications Ltd (Paytm's parent) fell sharply in Friday's trade, plunging 6.47% to hit a day low of Rs 836.10. At this price, the stock has corrected 21.35% from its 52-week high of Rs 1,063, seen on December 17 last year. However, the scrip has gained over 80% in the last six months.
Paytm's Financial Performance and Key Developments
The fintech player is scheduled to declare its third-quarter (Q3 FY25) results on January 20, 2025. Paytm's Singapore subsidiary sold a stake in Japan's PayPay Corp in December last year. On the earnings front, the digital payment firm posted its first-ever quarterly profit since listing during the September 2024 quarter, with a profit of Rs 928.3 crore. This was a significant improvement from the record loss of Rs 838.9 crore in the previous quarter (Q1 FY25) and the loss of Rs 290.5 crore in Q2 FY24. The company recorded an exceptional gain of Rs 1,345.4 crore in Q2 FY25 due to the sale of its ticketing business to online food aggregator Zomato.
Analyst Recommendations and Technical Outlook
Investors who bought at the bottom should consider booking profits, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. "The stock has shown a remarkable resilience after hitting an all-time low of Rs 310. Investors who bought at the bottom of the price have made solid returns in Paytm. They should consider booking profits at current levels." Technically, immediate support on Paytm could be seen in the Rs 808-780 range, and the upcoming quarter results will be crucial for the company's future performance.
Shares of One 97 Communications Ltd (Paytm's parent) fell sharply in Friday's trade, plunging 6.47% to hit a day low of Rs 836.10. At this price, the stock has corrected 21.35% from its 52-week high of Rs 1,063, seen on December 17 last year. However, the scrip has gained over 80% in the last six months.
Paytm's Financial Performance and Key Developments
The fintech player is scheduled to declare its third-quarter (Q3 FY25) results on January 20, 2025. Paytm's Singapore subsidiary sold a stake in Japan's PayPay Corp in December last year. On the earnings front, the digital payment firm posted its first-ever quarterly profit since listing during the September 2024 quarter, with a profit of Rs 928.3 crore. This was a significant improvement from the record loss of Rs 838.9 crore in the previous quarter (Q1 FY25) and the loss of Rs 290.5 crore in Q2 FY24. The company recorded an exceptional gain of Rs 1,345.4 crore in Q2 FY25 due to the sale of its ticketing business to online food aggregator Zomato.
Analyst Recommendations and Technical Outlook
Investors who bought at the bottom should consider booking profits, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. "The stock has shown a remarkable resilience after hitting an all-time low of Rs 310. Investors who bought at the bottom of the price have made solid returns in Paytm. They should consider booking profits at current levels." Technically, immediate support on Paytm could be seen in the Rs 808-780 range, and the upcoming quarter results will be crucial for the company's future performance.