- Paytm shares got listed on the stock exchange today
- Investors suffered a shock of 35 thousand crores due to listing with discount
- Now there is panic among the investors whether they should keep investing in the stock or exit.
- In such a situation, the opinion of market experts can be of great help to the investors in making a decision.
The stock of Paytm, the country’s largest digital payment platform, disappointed investors today. The company’s investors lost Rs 35,000 crore on the day of listing as the shares of Paytm’s parent company One 97 Communications were listed with a discount. Its issue price was Rs 2,150 and it was listed on BSE at Rs 1,955 i.e. 9.07 per cent discount. It was listed on NSE at Rs 1,950 with a discount of 9.3 per cent. It had fallen to Rs 1,586.25, down more than 20 per cent in early trade on the BSE.
What should investors do now?
Stock market experts say that investors dreamed big about Paytm which was baseless. The company’s performance was not improving and as the fintech market has become competitive it is not very easy for it to bounce back. This is the reason why there is panic among investors. Let us know what the experts are saying…
I can’t believe that Paytm can bounce back from here. This kind of valuation is actually financial madness. I wouldn’t feel comfortable even at a discount of less than 50% of the current price as I don’t see any scope for Paytm to dominate the market. The kind of dream shown, it does not seem to come true.
Anurag Singh, Managing Partner, Ansid Capital
75% of Paytm’s revenue comes from the basic payments business. It has very little margin. The rest of the company’s businesses are very small and their expansion will take time. These include mutual funds, insurance or gold loan business. Paytm is a big company. Given its size and operations, it can be said that the company will continue to pump cash into it. We will have to wait for when the company’s business will turn profitable.
Chakri Popular, CEO & MD, TCG AMC
Paytm is continuously making losses and it is not expected to turn profitable in the near future. In such a situation, investors who have invested money for listing gains can exit from it. New investors should look to other new age companies which can perform better than Paytm.
Partha Nyati, Founder, Tradingo
If there is an intention to maintain investment for a long time, then you can keep the stock, but if you cannot stay for long, then sell it soon and leave because in the near future there may be more weakness in it.
Vikas Jain, Senior Research Analyst, Reliance Securities
The investor should hold the shares for a long time and should not buy any more shares of Paytm.
Aastha Jain, Research Analyst, Hem Securities
Stock market experts say that investors who have been allotted shares of Paytm, they should exit at the level of Rs 1720. Only aggressive investors should hold this stock for a long time.
Santosh Meena, Head of Research, Swastika Investmart Ltd
The company would still have to face tough competition which would have affected its market share. Long term investors should hold on to the stock and wait for a good price.
Akhil Rathi, Vice President (Advisory), Marwadi Shares and Finance
Paytm’s financial performance was deteriorating. Perhaps for this reason a negative feeling towards him arose. Investors should do proper research before investing in new age startups.
Ajit Mishra, Vice President (Research), Religare Broking
What Paytm Investors Should Do, Know Expert’s Advice (Indicative Image)