shares parent’s One97 Communications fell as much as 19% on Monday, down 27% on Thursday as retail opened at its start investors Those betting on listing gains continued to dump the stock while domestic institutional investors stayed off the counter. Analysts said weak listings and continued weak trading on Paytm weighed on sentiment in the domestic market, which was thriving on a strong primary market.

The stock finally made some losses, closing at Rs 1,360.30 on Monday, 13% lower than Thursday’s closing price and 37% below the offer price of Rs 2,150. The company’s valuation on Monday declined to Rs 88,185 crore from Rs 1.4 lakh crore.

VK Vijayakumar, chief investment strategist, Geojit Financial Services, said, “No one knows when the Paytm recovery will end as there are no credible valuation models to value new-age digital companies.” “While these companies are likely to trade at a premium to existing companies due to their growth potential and ability to scale operations, this does not justify the unusual premium at which they are trading now.”

In a report released on the day of One97’s listing, Macquarie had valued the stock at Rs 1,200, which was 0.5 times the price-to-sales growth multiplier on annual sales of December 2023. According to Piyush Nagda, Head of Investment Products, Prabhudas Lilladher, Paytm can buy interest from institutions and family offices around Rs 1,250-1,300 level.

Analysts said that the best listed fintech companies are available with fair valuations and certainty of growth.

Paytm’s FY21 revenue stood at Rs 3,281 crore. Bajaj Finserv, a listed fintech company with a proven track record of sustained profits and growth, reported revenue of Rs 63,000 crore and profit of Rs 4,470 crore in FY2011. It is trading at a market cap of Rs 2.72 lakh crore. SBI Cards and Payment Services trades at a market cap of Rs 95,100 crore, with revenue of Rs 9,301 crore and profit of Rs 985 crore in FY21.

Santosh Meena, Head of Research, Swastika Investments said, “If we talk about the future outlook of Paytm, it is still uncertain as the market is not clear about the timing of its core business and profitability.” “Only very aggressive investors should invest in the company, while others should look for exit opportunities on any pullbacks.”

According to a Bloomberg report, Vijay Shekhar Sharma, founder and CEO of One97 Communications, compared the stock performance of the Indian payments startup to Tesla Inc.

In a BSE filing, One97 said its gross trading value (GMV) – or payments made to merchants through its platform – rose 131% to $11.2 billion in October from a year earlier. Its monthly transactional users (MTU) grew more than 35% to 63 million in October, from 47 million in the same month last year. GMV per MTU increased from $104 to $177.

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