PAYTM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.7
| Stock Code | PAYTM | Market Cap | 74,164 Cr. | Current Price | 1,159 ₹ | High / Low | 1,382 ₹ |
| Stock P/E | 224 | Book Value | 199 ₹ | Dividend Yield | 0.00 % | ROCE | -11.8 % |
| ROE | -12.0 % | Face Value | 1.00 ₹ | DMA 50 | 1,265 ₹ | DMA 200 | 1,141 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.37 % | PAT Qtr | 145 Cr. | PAT Prev Qtr | 131 Cr. |
| RSI | 37.0 | MACD | -41.0 | Volume | 98,78,659 | Avg Vol 1Wk | 61,18,097 |
| Low price | 652 ₹ | High price | 1,382 ₹ | PEG Ratio | 22.2 | Debt to equity | 0.01 |
| 52w Index | 69.5 % | Qtr Profit Var | 171 % | EPS | -9.98 ₹ | Industry PE | 28.7 |
📊 Chart & Trend Analysis: PAYTM is trading at ₹1,159, below its 50 DMA (₹1,265) but slightly above its 200 DMA (₹1,141), reflecting short-term weakness with medium-term support. RSI at 37.0 indicates the stock is near oversold territory, while MACD (-41.0) confirms strong negative momentum. Bollinger Bands show price leaning toward the lower band, suggesting selling pressure. Current volume (98,78,659) is higher than the 1-week average (61,18,097), indicating active participation during the decline.
📈 Momentum Signals: Short-term momentum remains weak, with RSI below 40 and MACD negative. A reversal signal may emerge only if RSI climbs above 45 and price sustains above ₹1,200.
💡 Entry Zone: ₹1,120–₹1,140 (support near 200 DMA)
🚪 Exit Zone: ₹1,260–₹1,300 (resistance near 50 DMA)
🔎 Trend Status: The stock is consolidating with bearish bias, showing potential reversal only if support holds and RSI recovers.
Positive
- Quarterly PAT improved to ₹145 Cr. vs ₹131 Cr., showing 171% variation.
- Increase in both FII (+0.04%) and DII (+0.37%) holdings reflects institutional interest.
- 52-week index return at 69.5% indicates strong long-term performance.
Limitation
- Stock P/E at 224 is extremely high compared to industry average (28.7), making valuations stretched.
- Negative EPS (-₹9.98) reflects lack of profitability.
- ROCE (-11.8%) and ROE (-12.0%) remain weak, showing poor efficiency.
- PEG ratio at 22.2 suggests expensive growth-adjusted valuation.
Company Negative News
- Persistent losses despite revenue growth highlight structural challenges.
- No dividend yield, limiting shareholder returns.
Company Positive News
- Quarterly profit growth shows improving operational performance.
- Institutional investors have marginally increased holdings, signaling cautious optimism.
Industry
- Industry PE at 28.7 is far lower than PAYTM’s, highlighting sector competitiveness.
- Fintech sector demand remains strong, supported by digital adoption and payment ecosystem growth.
Conclusion
⚖️ PAYTM is consolidating with bearish bias, trading below its 50 DMA but holding near 200 DMA support. While fundamentals show improving profits, stretched valuations, negative EPS, and weak efficiency metrics limit upside. Traders may consider entry near ₹1,120–₹1,140 with exit targets around ₹1,260–₹1,300. Sustained reversal requires RSI recovery above 45 and price stability above 50 DMA.