After the RBI action, One 97 Communications shares plunge by 55 percent (From January 31 to date) on NSE and BSE. In addition, after the announcement, major players such as Jefferies and Macquarie also downgraded the stock rating.
In a recent note, brokerage house Fisdom Research highlighted that before the recent decline since January 31, the MF industry’s shareholding in Paytm had increased by 41 percent in January 2024 from December 2023.
According to the brokerage, by share count, Nippon Mutual Fund, Mirae Mutual Fund, and Motilal Oswal Mutual Fund rank as the top three, holding the largest number of Paytm shares in their portfolios as of January 2024. Two AMCs, Baroda BNP Paribas, and Navi MF were the new entrants in Paytm in Jan’24 through actively managed funds.
Also, Motilal Oswal MF, UTI MF, Franklin Templeton MF, JM MF, and Nippon India MF increased their exposure in Paytm the most in January 2024.
Meanwhile, HSBC AMC fully exited equities in January ’24, from its actively managed funds. Quant Mutual Fund on the other hand reduced the exposure by 72.4 percent during the same period and Aditya Birla Sunlife MF reduced the exposure by 10 percent, it added.
Besides, SBI Mutual Fund, Edelweiss Mutual Fund, Kotak Mutual Fund, TATA Mutual Fund, ICICI Mutual Fund, Bandhan Mutual Fund and Grow Mutual Fund were not actively exposed to Paytm, informed the brokerage.
Fisdom also pointed out that the number of schemes in Paytm’s portfolio has increased from 70 to 77 in January 2024.
The Mutual Fund Industry is currently has a ₹3,384 crore exposure to Paytm. However, it also mentioned that 19 AMCs did not have any exposure in the stock as of January 2024.
Currently trading at ₹376, the stock is 63 percent away from its 52-week high of ₹998.30, hit on October 20, 2023. After the RBI move, the stock hit its record low of ₹318.35 last week on February 16, 2024. In the last 1 year, the stock has saved more than 40 percent. Meanwhile, it burst more than 48 percent just in February after a 20 percent increase in January.
After a significant decline since January 31, shares of One 97 Communications, the parent company of Paytm, have recently shown remarkable upward momentum, consistently hitting upper circuit limits in recent trading sessions.
In today’s trading session, the stock increased to a 5 percent upper circuit limit at ₹395.25, marking the fourth consecutive day of a 5 percent rally. During these four days, the stock accumulated a total gain of 21.5 percent.
This resurgence in buying interest can be attributed to various factors, including the Reserve Bank of India (RBI) extending the deadline, positive feedback from management, and recent developments such as the Enforcement Directorate (ED) finding no violation under the Foreign Exchange Management- Law. . Additionally, a strategic deal with Axis Bank and a superior rating from Bernstein contributed to the positive sentiment around the stock.
The RBI’s decision on Friday, February 16, to grant an additional 15 days till March 15, 2024, to Paytm Payments Bank (PPBL) to stop deposits, credit transactions or recharges in some customer accounts, wallets and FASTags, has was perceived as a move to protect the interests of customers, including merchants.
Disclaimer: The opinions and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decision.
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Published: 21 Feb 2024, 15:12 IST