SUMMARY
During Tuesday’s intraday trade, Delhivery hit its all-time low at INR 306.25, falling as much as 5% on the BSE
Paytm ended Tuesday’s trading session at INR 484.1 on the BSE, up 4.8%
While shares of Paytm have fallen more than 60% so far this year, Delhivery stock is down more than 30% since its listing in May this year
Amid the ongoing volatility, shares of fintech giant Paytm and logistics unicorn delhivery
closed over 4% on the BSE on Tuesday (November 29), compared to Monday’s close.
During the intraday trade, Delhivery hit its all-time low at INR 306.25, falling as much as 5% on the BSE. However, the stock bounced and ended the session at INR 337, up 4.1% against Monday’s close.
Meanwhile, Paytm ended Tuesday’s session up 4.8% at INR 484.1 on the BSE.
Delhivery hit its all-time low at INR 317 last week after its lock-in expired and CA Swift Investments or Carlyle Group sold 2.5% of its stake in the startup, worth INR 607 Cr, in a bulk deal.
It is pertinent to note that last week the Reserve Bank of India (RBI) refused to allot a payment aggregator licence to Paytm and barred it from onboarding new online merchants.
Despite this, Paytm hasn’t received any new negative sentiment from investors so far this week. Interestingly, brokerage CLSA has upgraded Paytm to ‘buy’ from a ‘sell’ rating.
CLSA noted that its interactions with several Paytm investors over the past four months have already highlighted that some level of discomfort and uncertainty exist pertaining to scaling up its lending business.
It also said that Paytm’s stock price decline of 25% to 30% in the past two weeks has made the risk-reward favourable.
While many other brokerages reiterated their positive stance on Paytm earlier this month, domestic brokerage JM Financial has a ‘sell’ rating on the stock.
“…we believe (the) incremental path to profitability remains primarily contingent on continued improvement in overall revenue, coupled with the reduction in marketing and cashback spends and ESOP costs for Paytm,” the brokerage said in a recent research note on Paytm.
Meanwhile, Morgan Stanley believes that RBI’s notice to the fintech giant to reapply for a licence to continue its operations as an online payment aggregator has increased regulatory uncertainty.
Though the volatility will continue, as believed by many analysts, no major bulk/block sell-off has taken place at Paytm since SoftBank’s 4.5% stake sale in a bulk deal two weeks back.
While shares of Paytm have fallen more than 60% so far this year, Delhivery stock is down more than 30% since its listing in May this year.
