Macquarie maintained its rating as “Underperform” regarding Paytm. It also cuts down Paytm’s target price from 1200 to 900.
Macquarie reduces Paytm’s revenue CAGR from 26% to 23%. In addition to this it also cuts Paytm’s earnings projection from 27% to 16% for FY22-25E .
Since its listing, Paytm fell by 40%. At present, it is trading at 17 times FY23E sales. Macquarie thinks it is still an expensive valuation.
Right now, the stock is trading around Rs.1182. It is down by 4% today.