PAYTM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.6
| Stock Code | PAYTM | Market Cap | 71,388 Cr. | Current Price | 1,116 ₹ | High / Low | 1,382 ₹ |
| Stock P/E | 216 | Book Value | 199 ₹ | Dividend Yield | 0.00 % | ROCE | -11.8 % |
| ROE | -12.0 % | Face Value | 1.00 ₹ | DMA 50 | 1,114 ₹ | DMA 200 | 1,122 ₹ |
| Chg in FII Hold | -2.35 % | Chg in DII Hold | 2.76 % | PAT Qtr | 145 Cr. | PAT Prev Qtr | 131 Cr. |
| RSI | 51.5 | MACD | 12.6 | Volume | 13,61,937 | Avg Vol 1Wk | 21,66,098 |
| Low price | 803 ₹ | High price | 1,382 ₹ | PEG Ratio | 21.3 | Debt to equity | 0.01 |
| 52w Index | 54.0 % | Qtr Profit Var | 171 % | EPS | -9.98 ₹ | Industry PE | 22.5 |
PAYTM currently shows weak fundamentals and high valuation, making it a risky candidate for swing trading. The RSI at 51.5 is neutral, while MACD is positive (12.6), suggesting mild bullish sentiment. The current price (₹1,116) is hovering around both the 50 DMA (₹1,114) and 200 DMA (₹1,122), indicating indecision. Trading volume is below the weekly average, limiting momentum.
🎯 Optimal Entry Price
Entry is only favorable near ₹1,080–1,100, close to support levels, provided volume improves and MACD remains positive.
📈 Exit Strategy
If already holding, consider exiting near ₹1,200–1,250. A breakout above ₹1,300 would be required for stronger bullish confirmation.
✅ Positive
- Quarterly PAT improved from ₹131 Cr. to ₹145 Cr.
- DII holdings increased (+2.76%), showing strong domestic institutional support.
- Low debt-to-equity ratio (0.01) provides financial stability.
⚠️ Limitation
- Extremely high P/E of 216 compared to industry average (22.5).
- Negative ROCE (-11.8%) and ROE (-12.0%) reflect poor efficiency.
- No dividend yield, reducing investor appeal.
- PEG ratio of 21.3 indicates overvaluation relative to growth.
📉 Company Negative News
- EPS remains negative (-₹9.98), showing continued losses.
- FII holdings decreased (-2.35%), signaling reduced foreign investor confidence.
📈 Company Positive News
- Quarterly profit growth of 171% shows operational improvement.
- DII support increased significantly, reflecting domestic confidence.
🏭 Industry
- Industry P/E at 22.5 is far lower than PAYTM’s valuation, highlighting its premium pricing.
- Fintech sector demand remains strong, driven by digital adoption and cashless economy initiatives.
🔎 Conclusion
PAYTM is not an ideal swing trade candidate due to weak fundamentals and excessive valuation. Entry near ₹1,080–1,100 is only suitable for high-risk traders, with exit around ₹1,200–1,250. Sustained profitability and stronger technical confirmation are needed before considering it a reliable swing trade opportunity.