Paytm share price at record low, Macquarie highlights more worries

Bad news continues to steer itself towards Vijay Shekhar Sharma backed Paytm as Macquarie warns of further downside in stock after the RBI order. The Australian brokerage that had been bearish on the stock even before the listing has maintained that stand while reducing the stock price target further to Rs 700/share. Here are the highlights of that report-:

• Paytm Payments Bank houses all the key products offered by Paytm
• Macquarie View: Ban on onboarding of customers by Paytm Payments Bank is effectively a ban onboarding of customers for Paytm
• Paytm’s business has strong linkage with payments bank arm: Paytm Payments Bank is an associate company of Paytm (49% owned by Paytm, with 51% owned by Vijay Shekhar Sharma)
• Payments Bank has a revenue-sharing agreement with Paytm
• Strong regulatory signal; limited biz impact as large customers already onboarded
• Expect a significant impact on Paytm’s brand and customer loyalty going forward