Paytm - one 97 communications limited

Troubles Prop Up At Paytm, High-level Exit Fear Investors

Paytm shares have slid by 4.7% in today’s trading session after the exit of Bhavesh Gupta, Chief operating officer and president of the company.

The stock of One 97 Communications Ltd. The parent company of India’s largest digital payment app, Paytm, has cracked down by 4.75% today to Rs.352.50 a piece as the company has announced the exit of Bhavesh Gupta, The Chief operating officer and president of the company.

Resignation of Bhavesh Gupta

Bhavesh Gupta in his letter has said that his resignation would be effective after 31st May,2024. However, he displayed his intentions to continue supporting the company as an advisor in the Chief Executive’s office. Gupta further mentioned personal reasons for taking a career break in the resignation letter. However, he has still shown confidence in the future growth trajectory of Paytm.

Paytm in its filing to the exchange has said that,” His resignation has been accepted by the Company and he will be relieved from the services of the Company w.e.f. close of business hours on May 31, 2024."

Upcoming Q4 FY 2023-24 Earnings for Paytm

Paytm is yet to report its Q4 FY 2023-24 earnings, after the RBI ban on Paytm Payments Bank Limited, the company has paused lending activities for more than a month now. This is going to largely impact the business of the company on both top-line as well as bottom-line frontiers. Bhavesh Gupta’s resignation has come just ahead of Paytm’s Q4 FY 2023-24 earnings. Streets are expecting that the quarterly would have impacted following the ban imposed by the Reserve Bank of India on Paytm Payments Bank Ltd. The stock is down by 4.9% today and trading at levels of Rs.351 a piece.

Stock Performance

Paytm stock has continuously been one of the worst performers, It is down by more than 50% in the past year, The stock is down by 15% in the past month. The stock has made a 52-week high and low of Rs.998.30 and Rs.318.05 respectively.

Conclusion: The exit of Bhavesh Gupta before the release of the Q4 FY 2023-24 earnings of the company. This has worried the streets about the performance of the company in the Q4 FY 2023-24 quarter as it has also been affected by the recent ban on Paytm Payments Bank Ltd. The stock currently trades at Rs.351.85 a piece.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.