Paytm shares crash 9% after Macquarie cuts target price to Rs 275 in fresh downgrade

Paytm shares today fell up to 8.7% to day’s low at Rs 385.75 on BSE after global broking firm Macquarie downgraded the troubled fintech to underperform from neutral call with a reduced target price of Rs 275 saying that the Vijay Shekhar Sharma-led company is facing a serious risk of customer exodus which significantly jeopardises its monetisation and business model.

“We change our methodology from price/sales to fair value on normalised distribution business profits. We revise our target price to Rs 275 from Rs 650. Our valuation would have been Rs 225 under our earlier methodology,” said Macquarie’s Suresh Ganapathy.