Paytm’s parent company One97 Communications’ shares touched a new low of Rs 990, down by 5%, on the BSE in Wednesday’s intra-day trade on the back of heavy volumes. The share is less than 10% away from touching brokerage firm Macquarie’s target price of Rs 900 apiece.

The stock price of Paytm has dropped 26% in the past three weeks. It has slipped 54% against the issue price of Rs 2,150 since the company made its market debut on November 18, 2021.

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At 2.30 pm, Paytm was down 3.88% at Rs 1001.50, as compared to a 1.2% decline in the S&P BSE Sensex. A combined 5.2 million equity shares changed hands on the counter on the NSE and BSE.

The shareholding pattern data shows that on listing foreign portfolio investors (FPIs) held a 10.37% stake and individual investors held a 12.05% stake in Paytm. The company is yet to file its December quarter shareholding pattern.

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In November 2020, global brokerage firm Macquarie’s target price for Paytm was Rs 1,200. In the January 2022 report, Macquarie reduced its target price (TP) to Rs 900 and maintained its ‘underperform’ rating on the stock.

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Macquarie said that after the various business updates and results the  revenue projection is at risk and it has pared  revenue CAGR (compound annual growth rate) from 26% to 23& for FY21-26E. They are roughly cutting revenue estimates for FY21-26E on an average of 10% every year due to lower distribution and commerce/cloud revenues offset partially by higher payment revenues.

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Due to lower revenues and higher employee and software expenses, it is cutting its revenue projection by 16-27% for FY22-25E. “We cut our TP sharply by around 25% owing to a lower target multiple of 11.5x (price-to-sales ratio) (from 13.5x earlier) and lower sales numbers,” the brokerage said.

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Paytm’s IPO  saw an overall subscription of 1.9 times the shares on offer. Paytm is yet to release its financial report for the quarter ended December 2021. Paytm reported an 8.5% increase in net loss on the year to Rs 473 crore. However, the revenue rose  63.6% to Rs 1,086.4 crore.