Key Points
Macquarie highlights serious implications of RBI ban on Paytm's ability to retain customers and sell payment and loan products..
After RBI issued a strong statement to impose restrictions on Paytm Payments Bank, brokerages started to downgrade the stock with Jefferies' target price going down to Rs 500 per share weighing in the reputational risks...
The fintech said the merchant payments business can be run by partnering with other banks and in the worst case impact could be Rs 300-500 crore on its annual EBITDA...
"RBI's actions directly impact the wallet business and profitability of merchant payments business, which can impact Ebitda by 20-30%..
These drive us to cut FY25-26 Ebitda estimates by 45%, which will also delay profitability," Jefferies said.. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own..
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