PAYTM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.2
| Stock Code | PAYTM | Market Cap | 70,081 Cr. | Current Price | 1,094 ₹ | High / Low | 1,382 ₹ |
| Stock P/E | 145 | Book Value | 205 ₹ | Dividend Yield | 0.00 % | ROCE | 3.80 % |
| ROE | 3.72 % | Face Value | 1.00 ₹ | DMA 50 | 1,105 ₹ | DMA 200 | 1,118 ₹ |
| Chg in FII Hold | -2.35 % | Chg in DII Hold | 2.76 % | PAT Qtr | 98.0 Cr. | PAT Prev Qtr | 145 Cr. |
| RSI | 49.6 | MACD | -5.96 | Volume | 42,63,834 | Avg Vol 1Wk | 21,15,365 |
| Low price | 859 ₹ | High price | 1,382 ₹ | PEG Ratio | 4.62 | Debt to equity | 0.01 |
| 52w Index | 44.9 % | Qtr Profit Var | 292 % | EPS | 1.05 ₹ | Industry PE | 21.7 |
Analysis: PAYTM shows weak swing trade potential with high risk. The RSI at 49.6 indicates neutral momentum, while MACD at -5.96 reflects bearish sentiment. Current price (1,094 ₹) is slightly below both 50 DMA (1,105 ₹) and 200 DMA (1,118 ₹), showing technical weakness. Valuation is extremely stretched with a P/E of 145 compared to industry average of 21.7, and efficiency metrics are poor (ROCE 3.80%, ROE 3.72%). Despite this, EPS has turned positive (₹1.05) and quarterly profit variation shows improvement, though PAT declined sequentially.
Optimal Entry Price: Around 1,020–1,040 ₹, closer to support levels near 859 ₹.
Exit Strategy: If already holding, consider profit booking near 1,150–1,180 ₹ resistance, or trail stop-loss below 1,000 ₹.
✅ Positive
- 📈 EPS turned positive at ₹1.05.
- 📊 PAT of ₹98 Cr., though lower than previous quarter, reflects operational improvement compared to past losses.
- 📉 Debt-to-equity ratio at 0.01, indicating negligible leverage risk.
- 📊 Strong DII support (+2.76%), showing domestic institutional confidence.
⚠️ Limitation
- ⚠️ Extremely high P/E of 145 vs industry average of 21.7.
- 📉 Weak ROCE (3.80%) and ROE (3.72%).
- 📊 RSI neutral and MACD negative, indicating weak momentum.
📉 Company Negative News
- 📉 PAT declined from ₹145 Cr. to ₹98 Cr. quarter-on-quarter.
- ⚠️ FII holding decreased (-2.35%), showing reduced foreign investor confidence.
📈 Company Positive News
- 📈 DII holding increased (+2.76%), showing strong domestic support.
- 📊 Quarterly profit variation at +292%, reflecting turnaround momentum.
🏭 Industry
- 💳 Industry P/E at 21.7, much lower than PAYTM’s, highlighting valuation risk.
- 📊 Fintech sector remains growth-oriented, driven by digital payments adoption and regulatory support.
🔎 Conclusion
⚖️ PAYTM is a speculative candidate for swing trading with weak technicals and stretched valuation. Entry near ₹1,020–1,040 offers better risk-reward, while exit should be considered around ₹1,150–1,180. The stock is suitable only for high-risk traders looking for short-term momentum rather than stable swing setups.
Would you like me to extend this into a sector overlay comparison with peers like PhonePe and Razorpay, or keep the focus strictly on PAYTM swing trade analysis?