Paytm shares hit record low as stock halves in 2024 so far; here's what analysts say

Shares of One 97 Communications Ltd, Paytm's parent, on Wednesday plunged to their all-time low level. The stock cracked 5 per cent to hit its lower price band of Rs 317.45. At this price, it has crashed 50.91 per cent on a year-to-date (YTD) basis.

Bourses BSE and NSE have put the securities of Paytm under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

Paytm's president and chief operating officer (COO) Bhavesh Gupta has recently resigned. He has moved to an advisory position, as a part of overall organisational restructuring. Gupta will continue to support Paytm as an advisor in the CEO office after May 31, 2024, Paytm informed exchanges.

In his letter to Vijay Sekhar Sharma, Gupta said he will not be to continue as President and COO due to personal reasons. He suggested that he would support the organisation in his capacity as an advisor in the CEO office.

"The company has also undertaken leadership transitions within its wealth subsidiary where Rakesh Singh has recently been appointed as the new Chief Executive Officer of Paytm Money Ltd (PML). With over two decades of experience, Rakesh Singh was previously the CEO of the stock broking business at Fisdom, and has held key management positions with ICICI Securities and Standard Chartered Bank," Paytm said.

Analysts largely suggested that the stock looked 'bearish' on daily charts. "The stock looked weak on daily charts. It may slip towards Rs 280 level in the near term. Hence, caution is advised," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

"Paytm is in a bearish trend. While a potential bounce-back to around Rs 370 level might offer temporary relief, the overall structure remains weak. We recommend a cautious approach, advocating for selling on rallies with a strict stop loss of Rs 255," said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

The stock has been under tremendous pressure since Reserve Bank of India (RBI) announced restrictions on Paytm Payments Bank's operations amid persistent non-compliances and continued material supervisory concerns.