Shares of One 97 Communications Ltd (Paytm's parent) fell sharply in Friday's trade. The stock plunged 6.47 per cent to hit a day low of Rs 836.10. At this price, it has corrected 21.35 per cent from its 52-week high of Rs 1,063, seen on December 17 last year. That said, the scrip has gained over 80 per cent in the last six months.
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. The fintech company's profit came at Rs 928.3 crore in the second quarter (Q2 FY25) as against a record loss of Rs 838.9 crore in the previous quarter (Q1 FY25). Paytm had reported a 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. Paytm sold the mentioned business to online food aggregator Zomato in August 2024.
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. The upcoming quarter results are crucial for the company. Traders with a high-risk appetite and long-term view can hold on to the stock, the market expert stated.
Technically, immediate support on Paytm could be seen in the Rs 808-780 range. One may exit at current levels as the counter can slip further in the near term, an analyst said.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "Paytm looked weak on daily charts and can slip towards Rs 780 levels. Investors may consider exiting the stock at current levels."
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Paytm has corrected over 15 per cent in the new year after a stellar performance in the last calendar year. The counter has reverted from a crucial hurdle of Rs 1,000. Rs 800, followed by Rs 780 levels are likely to cushion the fall and need to be reviewed for further price action."
Sebi-registered research analyst AR Ramachandran said, "Paytm is bearish yet slightly oversold on daily charts with next support at Rs 808. Investors should buy only if a daily close is above the resistance of Rs 894, which could lead it to an upside target of Rs 993 in the near term."