Paytm's shares plunged on Monday after brokerage company Macquarie cut its target priceShares of One97 Communications, the moms and dad entity of online payments platform Paytm plunged on Monday and ended at Rs 1,159, falling 5.89 per cent or Rs 72.60 over the previous close of Rs 1,230, as brokerage company Macquarie in its report on the company, set the target price for its shares at Rs 900.
The firm likewise offered the company and UnderPerformance ranking.
Post the numerous organization updates and results, we believe our revenue forecasts, particularly on the distribution side, is at threat and thus we pare down our income CAGR from 26 percent to 23 percent for FY21-26E, stated Macquarie experts Suresh Ganapathy and Param Subramanian.
We are roughly cutting revenue quotes for FY21-26E on an average by 10 percent every year due to lower distribution and commerce/cloud incomes balance out partly by greater payment incomes.
We cut our incomes (increase our loss projections) by 16-27 per cent for FY22-25E owing to lower incomes and greater employee and software expenditures, they added.Macquarie cut the target cost dramatically by nearly 25 per cent owing to lower target multiple of 11.5 x (Cost to Sales ratio) (from 13.5 x earlier) and lower sales numbers.
We keep UnderPerformance with a modified target cost of Rs 900, the brokerage company said.