Beleaguered fintech Paytm’s battered stock witnessed sharp 10% intra-day gains a day after founder Vijay Shekhar Sharma met banking regulator RBI and Finance Minister Nirmala Sitharaman even as regulatory easing hopes dimmed. Media reports indicate the banking regulator refused budging from its directive to shutter customer onboarding and credit lines for Paytm Payments Bank.
The stock had tanked over 40% in three sessions since the RBI order roiled markets on operational viability concerns before Tuesday’s mild recovery and further upside on Wednesday as investors hunted for bottom. However analysts divided whether meaningful fundamentals change help challenging prevailing negative sentiment currently.
Migrating 300 Million Accounts Biggest Challenge
Share value gains came despite RBI declining Paytm any relaxation on the February 28 compliance deadline or additional time for managing transitions with the firm slated migrating 300 million plus accounts. Instead the regulator asked for faster wrap-ups increasing pressure to meet cut-offs.
Global brokerage Bernstein however feels company’s execution abilities help it overcome the turmoil though near-term uncertainties persist. It maintained a 12-month price target of ₹950 on stock with ‘outperform’ rating citing high risks still limiting wider positive view.
