Shares of Paytm owner One97 Communications on Friday recovered losses after slipping below Rs 1,000 for the first time since listing.
The stock, declining for the ninth consecutive session, hit a record low of Rs 995 a share in the opening but recovered losses soon to go over 2% higher. At 10am, the scrip was trading at Rs 1,063.80 on the BSE, up 3.14% from its previous close.
Since listing, shares of Paytm have lost over 50% eroding over Rs 70,000 crore as traders remained cautious amid continued downgrades by brokerage firms. Expensive valuations, expected norms on digital payment regulations and top management resignations have fuelled concerns among investors.
Recent indications that the US Federal Reserve may increase interest rates earlier than expected has also impaired valuations of new-age/tech companies across the globe.
Recently, Macquarie Research retained its underperform rating, but cut its target price by 25 percent on Paytm to Rs 900 from Rs 1,200. This implies another downside of 28% from its current price. JM Financial also initiated a sell rating on 27 November and assigned a target price of Rs 1,240 a share.