Shares of Paytm parent One97 Communications Ltd. recovered on Friday after it tumbled to hit the 20% lower circuit, the worst fall since listing.
The stock had hit the lower circuit after analysts downgraded it as the company decided to bring down the level of unsecured loans under Rs 50,000 in a calibrated manner.
Paytm’s move comes after the Reserve Bank of India tightened norms for unsecured retail loans in November. The central bank made consumer lending costlier for banks and non-bank lenders, and also asked them to limit exposure to such loans, amid growing risk concerns.
Paytm's stock rose as much as 2.80% during the day at Rs 679.85 apiece on the NSE. It was trading 1.50% higher at Rs 671.30 apiece compared to a 0.38% advance in the benchmark Nifty 50 as of 10.53 a.m.
It has risen 26.72% year-to-date. The total traded volume so far in the day stood at 2.7 times its 30-day average. The relative strength index was at 20, indicating the stock may be oversold.
Ten out of the 15 analysts tracking Paytm have a 'buy' rating on the stock, while five recommend 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 49.7%.
RECOMMENDED FOR YOU
India’s Power Finance Turns Down Rs 20,000 Crore Debt To Shapoorji
Nov 10, 2024
.jpg?rect=0%2C0%2C3500%2C1969&w=75)
Bharti Airtel's Shashwat Sharma Set To Step Up As CEO In 2026
Oct 28, 2024
Japan Stocks Rebound Even As Ruling Party Loses Majority, Yen Drops: Asia Markets Wrap
Oct 28, 2024
 18_04_2024..jpg?rect=0%2C0%2C3500%2C1969&w=75)
Paytm Share Price Drops 5% After Q2 Report As Company Promises Loan Default Guarantees
Oct 22, 2024
POPULAR