Macquarie cuts Paytm target price to Rs 900 citing red flags in business

Flags senior management exits in the firm, its average merchant loan size at sub-Rs 5,000 levels over the past year and regulatory uncertainty in fintech and insurance as concerns for the stock

Brokerage firm Macquarie on Monday published yet another report on One97 Communications, retaining its ‘underperform’ rating but cutting the target price of the stock to Rs 900 apiece. This sparked a 6 per cent decline in the shares of Paytm’s parent company, which ended the day at Rs 1,157.90 on the BSE, even as the Sensex rose 1.1 per cent.

“Post the various business updates and results, we believe our revenue projections, particularly on the distribution side, is at risk and hence we pare down our revenue CAGR (compound annual growth rate) from 26 per cent to 23 per cent for