JM Financial issues a’sell’ call on Paytm stocks, with a target price of Rs 1,240

New Delhi, Nov 29, : .

JM Financial, a broker, has issued a "sell call" for One97 Communications-owned Paytm with a target price at Rs 1,240The brokerage stated that Paytm faces severe challenges in its customer acquisition engine.

This would slow down its revenue growth within the core payments business, while scaling up its related ecosystem businesses (commerce and cloud) leaves much to be desired.It stated that Paytm would need to continue funding its MTU’ growth.

The road to profitability, it said, largely depends on the growth trajectory other businesses.It also stated that Paytm will have to adapt to the changing regulatory environment for digital lenders.

According to its view, regulation is more stringent than it is conducive.The shares of the payment service provider company were listed on the exchanges in November 2021.

The companys shares closed at Rs 1,564, 27% lower than the day before, which was a disappointing debut.The offer price for the company was Rs 2,150.

The companys stock has been partially recovering from its initial losses.The companys shares closed Monday at Rs 1,706.This was 4.24 percent lower than the previous close.ad-rv/ar #Financial #asell #Paytm #target #Delhi.