PAYTM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.8
| Stock Code | PAYTM | Market Cap | 76,679 Cr. | Current Price | 1,197 ₹ | High / Low | 1,382 ₹ |
| Stock P/E | 232 | Book Value | 199 ₹ | Dividend Yield | 0.00 % | ROCE | -11.8 % |
| ROE | -12.0 % | Face Value | 1.00 ₹ | DMA 50 | 1,259 ₹ | DMA 200 | 1,142 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.37 % | PAT Qtr | 145 Cr. | PAT Prev Qtr | 131 Cr. |
| RSI | 43.8 | MACD | -37.8 | Volume | 42,53,347 | Avg Vol 1Wk | 53,24,066 |
| Low price | 652 ₹ | High price | 1,382 ₹ | PEG Ratio | 22.9 | Debt to equity | 0.01 |
| 52w Index | 74.7 % | Qtr Profit Var | 171 % | EPS | -9.98 ₹ | Industry PE | 29.6 |
📊 PAYTM shows weak fundamentals and bearish technicals, making it a high-risk candidate for swing trading. The stock is currently at ₹1,197, below its 50 DMA (₹1,259) but above its 200 DMA (₹1,142), reflecting mixed sentiment. RSI at 43.8 is near oversold territory, while MACD at -37.8 confirms downward momentum. With negative ROCE (-11.8%), ROE (-12.0%), and EPS (-₹9.98), profitability remains a concern. Optimal entry would be near ₹1,150–₹1,170 for speculative trades. If already holding, exit near ₹1,250–₹1,280, where resistance from the 50 DMA is expected.
✅ Positive
- Quarterly PAT improved from ₹131 Cr. to ₹145 Cr. (+171% variance).
- Strong institutional support with FII (+0.04%) and DII (+0.37%) inflows.
- Debt-to-equity ratio at 0.01 shows negligible leverage risk.
- High trading activity ensures liquidity.
⚠️ Limitation
- Extremely high P/E of 232 compared to industry PE of 29.6.
- Negative ROCE (-11.8%) and ROE (-12.0%) reflect poor efficiency.
- EPS at -₹9.98 highlights unprofitable operations.
- Dividend yield at 0% offers no income return.
- MACD negative and RSI weak, showing bearish momentum.
📉 Company Negative News
- Persistent losses despite revenue growth.
- High PEG ratio (22.9) suggests overvaluation relative to growth.
- Stock trading below 50 DMA indicates short-term weakness.
📈 Company Positive News
- Quarterly PAT growth shows improving operational performance.
- Institutional inflows (FII and DII) reflect confidence in long-term prospects.
- Low debt-to-equity ratio ensures financial stability.
🏭 Industry
- Industry PE at 29.6 is far lower than PAYTM’s 232, highlighting overvaluation.
- Fintech sector has strong long-term growth potential, supported by digital adoption.
🔎 Conclusion
PAYTM is a weak swing candidate due to poor profitability and overvaluation. Entry near ₹1,150–₹1,170 may be considered for speculative trades, but risk is high. Exit around ₹1,250–₹1,280 is advisable if already holding, as resistance is expected near the 50 DMA. Strong risk management is essential given negative ROE/ROCE and high P/E.