PAYTM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | PAYTM | Market Cap | 68,890 Cr. | Current Price | 1,077 ₹ | High / Low | 1,382 ₹ |
| Stock P/E | 208 | Book Value | 199 ₹ | Dividend Yield | 0.00 % | ROCE | -11.8 % |
| ROE | -12.0 % | Face Value | 1.00 ₹ | DMA 50 | 1,139 ₹ | 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 | 47.7 | MACD | -41.0 | Volume | 30,53,273 | Avg Vol 1Wk | 27,65,443 |
| Low price | 718 ₹ | High price | 1,382 ₹ | PEG Ratio | 20.6 | Debt to equity | 0.01 |
| 52w Index | 54.0 % | Qtr Profit Var | 171 % | EPS | -9.98 ₹ | Industry PE | 20.9 |
📊 Chart & Trend Analysis: PAYTM is trading at ₹1,077, below both its 50 DMA (₹1,139) and 200 DMA (₹1,131), reflecting short-term and medium-term weakness. RSI at 47.7 indicates neutral momentum, not oversold. MACD at -41.0 confirms bearish momentum. Bollinger Bands show price leaning toward the lower band, with support near ₹1,030 and resistance around ₹1,150–₹1,200.
📈 Momentum & Volume: Current volume (30,53,273) is slightly above the 1-week average (27,65,443), showing mild participation. However, momentum remains weak with no strong breakout signals.
🔑 Entry & Exit Zones:
- Optimal Entry: ₹1,030–₹1,060 (near support)
- Resistance Levels: ₹1,150 (short-term), ₹1,200 (medium-term)
- Exit Zone: ₹1,120–₹1,180 if momentum improves
📌 Trend Status: The stock is currently consolidating with bearish bias, awaiting stronger signals for reversal.
Positive
- Quarterly PAT improved to ₹145 Cr. vs ₹131 Cr. previously (+171% variation).
- FII holding increased (+0.04%) and DII holding increased (+0.37%), showing institutional support.
- Debt-to-equity ratio at 0.01 indicates negligible leverage risk.
Limitation
- ROCE (-11.8%) and ROE (-12.0%) remain negative, reflecting poor efficiency.
- EPS at -₹9.98 highlights lack of profitability.
- Stock P/E (208) is extremely high compared to industry PE (20.9), indicating overvaluation.
Company Negative News
- Persistent negative ROCE/ROE and EPS highlight weak fundamentals.
- Trading below both 50 DMA and 200 DMA reflects weak technical strength.
Company Positive News
- Quarterly profit improved significantly, showing operational progress.
- Institutional investors increased holdings, signaling confidence in long-term prospects.
Industry
- Industry PE at 20.9 is far lower than PAYTM’s P/E, suggesting sector peers are more attractively valued.
- Fintech sector remains high-growth, supported by digital adoption and regulatory tailwinds.
Conclusion
⚖️ PAYTM shows improving quarterly profits and institutional support, but fundamentals remain weak with negative ROCE/ROE and extreme overvaluation. Technicals suggest consolidation with bearish bias. A cautious entry around ₹1,030–₹1,060 may be considered with exit targets near ₹1,120–₹1,180 if momentum strengthens. Long-term investors should wait for sustained profitability and efficiency improvements before committing heavily.
Would you like me to extend this into a peer benchmarking overlay comparing PAYTM against fintech peers like PolicyBazaar, Zomato, and Nykaa to highlight relative strength and margin-of-safety clarity?