Will Paytm's stock increase today after a 3% rebound? Don't purchase today if you don't have a risk appetite

Will Paytm's stock increase today after a 3% rebound? Don't purchase today if you don't have a risk appetite

Will Paytm's stock increase today after a 3% rebound? Don't purchase today if you don't have a risk appetite

With a target price of Rs 600, Bernstein recommends Outperform on Paytm, noting that he believes the business will "successfully execute the operational changes required to get over the restrictions".

The past week has seen a 41% decline in this stock.

Following the RBI's general prohibition on its payments bank and brokerage downgrading, Paytm's shares fell 42% in the previous three days before rising over 3% with prospective bargain hunters on February 6.

Analysts claim that Paytm is now selling at reasonable prices and can be a smart purchase for investors with a high tolerance for risk, despite the general public's cautious attitude toward the company. The Reserve Bank of India has put restrictions on Paytm Payments Bank's ability to take on new loans and process payments.

The last week has seen significant changes in Paytm's fortunes. One 97 Communications stock had nine "buy" and five "hold" recommendations on January 30, with a consensus target price of Rs 960, according to Bloomberg data. It now has five calls, four holds, and six buy calls. Brokerage companies have downgraded the average target price to Rs 740 and issued a "sell" rating in response to the RBI decision.

Paytm finished at Rs 452.8 on February 6, up 3.26 percent from the conclusion of the day before.

It's best for retail investors to stay away from Paytm stock deals.

Retail investors were cautioned by Omniscience Capital's CEO and chief investment strategist, Vikas Gupta, not to rush into purchasing Paytm shares just now since it has already dropped 40%. To prevent another "Yes Bank scenario," he cautioned them.

According to him, it is a viable investment choice for astute investors who are able to monitor and comprehend the messages that are sent by Paytm and the RBI, as well as make informed speculations based on such communications.

Gupta claims that Paytm won't suffer long-term effects from the transfer of its wallet business to other banks if it is successful in doing so and can keep the majority of its wallet users without suffering a significant loss of users.

The future of Paytm is unclear; valuations seem appealing, but problems might get worse

What about investors who now own Paytm shares, though? "Those who have Paytm in their portfolio already don't need to panic and book losses because, assuming the overall business returns to base levels, it is trading at great valuations," he said. even while working together with other banks."

According to Gupta, things can grow worse for Paytm. It may only be appropriate for investors with a healthy risk appetite who allocate a small percentage of their portfolio to equities.

A target price of Rs 600 has been set by Bernstein for Outperform on Paytm, indicating his expectation that the business would "successfully execute the operational changes expected to overcome the restrictions".