Paytm Share: Paytm may get relief, this brokerage is confident – share will cross Rs 600

After the action taken by the Reserve Bank, there is a huge fall in the shares of Paytm. Barring a few occasions during the last 3 weeks, Paytm shares have hit lower circuit in almost every session. However, even after this, a brokerage firm is seeing scope for recovery in Paytm's shares.

Scope of 75 percent recovery

According to a report by ET Now, brokerage firm Bernstein. Shares of Paytm's parent company One97 Communications have been given a target of Rs 600. In the last session i.e. on Friday, February 16, there was an upper circuit of 5 percent on Paytm's share and it closed at the level of Rs 341.30. That means Bernstein sees a scope of more than 75 percent recovery in Paytm's shares from the current level.

The price was falling 20-20 percent

On January 31, the Reserve Bank Action was taken against the banking unit of Paytm Payments Bank. RBI had informed about the action after the market closed that day. After that, as soon as the market opened on the budget day on February 1, Paytm's shares fell by 20 percent. Paytm shares kept falling by 20-20 percent every day until the market reduced the circuit limit to 5 percent.

Paytm shares have fallen so much

< p>After the market closed on January 31, Paytm's share was at Rs 761.20. That means, before the action of RBI, the price of one share of Paytm was Rs 761.20. Before the upper circuit on Friday, Paytm shares had fallen to its new all-time low of Rs 318.05. That is, after the RBI action, Paytm's share has fallen by 140 percent.

More time given for compliance

Bernstein believes that RBI's action will only affect Paytm Payments Bank. That means it is on the banking unit of Paytm. In such a situation, there will be no impact on the rest of Paytm's business. Regarding the 15-day extension received from RBI, the brokerage firm feels that this will give additional time to Paytm for regulatory compliance.

Now this is the new deadline of RBI

You Let us tell you that in the action taken on January 31, RBI had immediately stopped Paytm Payments Bank from doing some work including adding new customers. The deadline of February 29 was fixed for various services ranging from wallet to bank account etc. Now the Reserve Bank has extended the deadline to March 15.

Disclaimer: The information provided here is being given for information only. It is important to mention here that investing in the market is subject to market risks. As an investor, always consult an expert before investing money. ABPLive.com never advises anyone to invest any money.

Also read: Attention Paytm Payments Bank account holders! Do this work before March 15, otherwise your salary will get stuck.