Written By
Rajpal
Some brokerages see a customer exodus impacting loans, while others say the impact is limited to wallets.
After RBI restrictions, foreign brokerages cut Paytm's target prices by 20-60%, with Macquarie being the most bearish.
While PPB restrictions won't affect lending directly, brokerages have different views. Some predict customer exodus impacting loans, while others foresee limited impact on wallets business with PPB including all 33 crore wallets.
Macquarie downgraded the stock on Feb 13, lowering target price to Rs 275 from Rs 650.
Macquarie found Paytm's lending partners reconsidering their relationship due to reputation concerns.
The RBI's action is estimated to impact around 20-30% of Paytm's EBITDA, while lending partnerships may cause a 20-25% hit to EBITDA.
Jefferies downgrades stock target price to Rs 500, down from Rs 1,050, as stock falls over 50% in past two weeks, closing at Rs 380 on NSE.