Paytm is the big newsmaker today though in the loser category. In an Analyst/investor meet held yesterday, the company said that it plans to slow down its small-ticket postpaid loans and will be henceforth focussing more on expanding its high-ticket personal loans and merchant loans.
Borkerage houses have not taken this news well as they feel this decision to move away from small size loans will impact the overall loan portfolio and this contributes more than 50% to the total disbursements.
Motilal Oswal in its note post this development said that Paytm has indicated that the monthly post-paid loan sourcing run rate will moderate by 50% to 1500 crore from Rs.3000 crore and thus expects total disbursement run rate to decline from Rs.6000 crore/month to Rs.4500/month, bringing down the average addition of 3.5-4 lakh customers each quarter by 50%.
Most brokerage houses have cut their revenue estimates for the company post this decision of Paytm.
And that’s why Paytm is the top loser on the BSE since the opening bell today morning, opening 8.5% lower at Rs.744.95 and falling down to an intraday low at Rs.650.65, down 20%, its LC of the day.