Shares of One97 Communications, the parent company of digital payments major Paytm, hit a new low of Rs 1,153, down 6 percent on the BSE in Monday’s intra-day trade after global brokerage Macquarie maintained its ‘underperform’ rating on the stock and reduced its target price (TP) to Rs 900. It also suggested that the company’s future earnings growth may be worse than it had earlier forecast. The target suggests a 58 percent downside over the issue price of Rs 2,150. From prevailing levels, the target suggests 26 percent downside potential. Shares of Paytm have had an abysmal journey on Dalal Street so far since listing in November last year. The brokerage firm has also cut its earnings projections for Paytm. “We are roughly cutting revenue estimates for FY21-26E on an average by 10% every year due to lower distribution and commerce/cloud revenues offset partially by higher payment revenues,” Macquarie said.
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