PAYTM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.7
| Stock Code | PAYTM | Market Cap | 66,664 Cr. | Current Price | 1,042 ₹ | High / Low | 1,382 ₹ |
| Stock P/E | 201 | Book Value | 199 ₹ | Dividend Yield | 0.00 % | ROCE | -11.8 % |
| ROE | -12.0 % | Face Value | 1.00 ₹ | DMA 50 | 1,135 ₹ | DMA 200 | 1,131 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.37 % | PAT Qtr | 145 Cr. | PAT Prev Qtr | 131 Cr. |
| RSI | 42.5 | MACD | -38.3 | Volume | 21,13,481 | Avg Vol 1Wk | 27,58,417 |
| Low price | 718 ₹ | High price | 1,382 ₹ | PEG Ratio | 19.9 | Debt to equity | 0.01 |
| 52w Index | 48.8 % | Qtr Profit Var | 171 % | EPS | -9.98 ₹ | Industry PE | 20.2 |
📊 PAYTM is currently a weak candidate for swing trading. The fundamentals are poor with negative ROCE (-11.8%) and ROE (-12.0%), extremely high P/E (201 vs industry 20.2), and negative EPS (-₹9.98). Technical indicators also show bearish momentum (RSI 42.5, MACD -38.3, price below both 50 DMA and 200 DMA). The optimal entry price would be near ₹1,000–₹1,020, close to support levels. If already holding, consider exiting around ₹1,120–₹1,150, where resistance from the 50 DMA and 200 DMA is expected.
✅ Positive
- Quarterly PAT improved from ₹131 Cr. to ₹145 Cr. (171% variation), showing some operational progress.
- Low debt-to-equity ratio (0.01) indicates minimal leverage.
- Institutional support: FII (+0.04%) and DII (+0.37%) holdings increased.
⚠️ Limitation
- Extremely high P/E (201) compared to industry average (20.2), indicating severe overvaluation.
- Negative ROCE and ROE highlight poor capital efficiency.
- No dividend yield, offering no passive income.
- PEG ratio at 19.9 suggests weak growth relative to valuation.
📉 Company Negative News
- Consistently negative EPS (-₹9.98) reflects lack of profitability.
- Stock trading below both 50 DMA (₹1,135) and 200 DMA (₹1,131), signaling bearish trend.
- MACD strongly negative (-38.3), indicating downward momentum.
📈 Company Positive News
- Quarterly profit improvement shows early signs of recovery.
- Institutional investors have marginally increased holdings.
- Low debt levels provide financial flexibility.
🏭 Industry
- Industry P/E at 20.2 is far lower than PAYTM’s, suggesting peers are better valued.
- Fintech industry has strong long-term growth potential, but profitability remains a key challenge.
📝 Conclusion
PAYTM is not a strong swing trade candidate due to weak fundamentals, overvaluation, and bearish technicals. Entry is only advisable near ₹1,000–₹1,020 for speculative traders, with exit around ₹1,120–₹1,150 if already holding. Long-term investors should wait for sustained profitability and improved ROCE/ROE before considering significant exposure.