Paytm bleeds as Macquarie's second report puts Rs 1,200 as target price

Profitability may 'remain elusive for a long time', says brokerage about digital payments company.

Paytm shares fell for the second trading day after the digital payments company listed on November 18, with its share prices sliding 18 per cent to Rs 1,284 till 12:26 pm IST.

Brokerage firm Macquarie published on Monday a second report on Paytm, maintaining its earlier target price of Rs 1,200 and an ‘underperform’ rating after its first one on listing day ruffled investors.

“Paytm’s valuation---is expensive, especially as profitability should remain elusive for a long time. We recommend UP with TP of Rs 1,200 valuing company at 0.5x PSg on Dec-23 annualised sales,” the report said.

Paytm valued its IPO at Rs