Macquarie suggested a target of Rs 180 in its bear case scenario that factored in a 75 per cent decline in distribution revenues against 60-65 per cent fall in its base case.
Macquarie said its target cut on Paytm was driven by a sharp reduction in revenues across various segments. Post the recent regulatory changes and diktats, Paytm now faces a serious risk of exodus of customers, which significantly jeopardises its monetisation as well as its business model.
The downgrade comes in the wake of the recent regulatory action on Paytm Payments Bank by the Reserve Bank of India. In a January 31 order, the RBI barred Paytm Payments Bank from offering banking services after February.