India Business News: Paytm, India's digital payments firm, experienced a significant drop of up to 20% in its stock price due to the company's decision to reduce low-value
Paytm: YES Securities said the commentary calls into question the thesis that Paytm was fast transforming from a Payments-focused company to a loan distribution-focused company.
Postpaid loan disbursement is expected to halve in the coming months, the company said. Investors were visibly upset, dragging the stock down almost 19% on Thursday.
As most mid and smallcap stocks lack value, as they have witnessed significant re-rating in multiples without a strong underlying business model or competitive advantage.Therefore, it may be wise to re-evaluate investments in this space and consider shifting focus towards large-cap stocks, which have the potential to deliver stronger performance in the coming year.