Shares of One 97 Communications Ltd (Paytm's parent) recorded a sharp cut on Wednesday due to profit booking. The stock slumped 8.20 per cent to close at Rs 902.05. At this price, it has declined 15.14 per cent compared to a 52-week high of Rs 1,063, a level seen on December 17, 2024. Despite the mentioned drop, the counter has rallied 91.09 per cent in the last six months.
A few analysts suggested booking some profit in Paytm shares post their 'impressive' run-up. "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 over 3x returns in Paytm. They should consider booking some profits at current levels. The upcoming quarter results are crucial for the company," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. Traders with a high-risk appetite can hold on to the stock with a long-term view, the market expert added.
Technically, support on the counter could be seen in the Rs 880-850 range. A decisive close above the Rs 970-Rs 1,000 range is required for further upside.
"Paytm has experienced a nearly 10 per cent decline in the new year 2025, following an impressive 60 per cent increase in the previous calendar year. The stock appears to be undergoing profit booking after its strong performance and has pulled back from the significant resistance level of Rs 1,000 mark. Intermediate support is observed around the Rs 850 zone, while Rs 1,000 level remains a challenging hurdle in the near term. A decisive breakthrough on either side of this range is anticipated to trigger momentum in the coming period," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Support will be at Rs 880 and resistance at Rs 940. A decisive move above Rs 940 level may trigger a further upside towards Rs 970. The expected trading range will be between Rs 880 and Rs 970 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.
The scrip traded lower than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but higher than the 50-day, 100-, 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 39.69. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The stock saw high trading volume on BSE today as around 5.73 lakh shares changed hands. The figure was higher than the two-week average volume of 2.69 lakh shares. Turnover on the counter came at Rs 53.23 crore, commanding a market capitalisation (m-cap) of Rs 57,495.10 crore.
As per BSE, the company's stock has a negative price-to-equity (P/E) ratio of 69.77 against a price-to-book (P/B) value of 4.48. Earnings per share (EPS) stood at (-)12.93 with a return on equity (RoE) of (-)6.42.
In December last year, Paytm's Singapore subsidiary approved a stake sale in Japan's PayPay Corp. 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.
Paytm 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 earlier in August 2024.