Despite the recent challenges data-faced by paytm shares following the Reserve bank of India's (RBI) action against paytm Payments bank, there is a positive outlook from brokerage firm Bernstein. The firm has set a target of Rs 600 for Paytm's parent company, One97 Communications, indicating a potential recovery of over 75 percent from the current level.
Before the RBI's action, Paytm's shares stood at Rs 761.20 on january 31. Post the recent decline, the shares hit a new all-time low of Rs 318.05 before experiencing an upper circuit of 5 percent on Friday, february 16. The significant drop in Paytm's share price, approximately 140 percent after the RBI action, has raised concerns among investors.
Bernstein, however, remains optimistic, emphasizing that the impact of the RBI's action is limited to paytm Payments bank, the banking unit of Paytm. The brokerage firm believes that the rest of Paytm's business remains unaffected by the regulatory measures. The recent 15-day extension granted by RBI for compliance is viewed by Bernstein as an opportunity for paytm to address regulatory requirements.
RBI's initial action on january 31 had halted certain operations of paytm Payments bank, including the addition of new customers. Various services, including wallet and bank account activities, were given a deadline of february 29. However, the RBI has now extended the deadline to march 15, providing paytm with additional time for compliance.
Before the RBI's action, Paytm's shares stood at Rs 761.20 on january 31. Post the recent decline, the shares hit a new all-time low of Rs 318.05 before experiencing an upper circuit of 5 percent on Friday, february 16. The significant drop in Paytm's share price, approximately 140 percent after the RBI action, has raised concerns among investors.
Bernstein, however, remains optimistic, emphasizing that the impact of the RBI's action is limited to paytm Payments bank, the banking unit of Paytm. The brokerage firm believes that the rest of Paytm's business remains unaffected by the regulatory measures. The recent 15-day extension granted by RBI for compliance is viewed by Bernstein as an opportunity for paytm to address regulatory requirements.
RBI's initial action on january 31 had halted certain operations of paytm Payments bank, including the addition of new customers. Various services, including wallet and bank account activities, were given a deadline of february 29. However, the RBI has now extended the deadline to march 15, providing paytm with additional time for compliance.
