Paytm among worst performing fintech stocks as earnings loom

The decline comes after India’s ordered Paytm’s banking affiliate to halt much of its business in January, dealing a major blow to the fintech pioneer and sparking a sharp selloff in its shares. The told to wind up all by March 15.

Both Paytm and Paytm Payments Bank are part of billionaire ’s fintech empire, but the bank isn’t controlled by the publicly traded mobile wallet company.

, the parent of Paytm, is expected to see losses widen Wednesday in its first earnings release since the restrictions were announced.

Bloomberg

The fourth-quarter net loss is expected to widen to 4.6 billion rupees ($55 million) from 1.7 billion rupees a year earlier, according to data compiled by Bloomberg. Revenues are expected to be little changed at 23.4 billion rupees.

Of the 16 analyst recommendations on Bloomberg, seven suggest selling the stock while the remaining nine have a buy or hold call. The average 12-month price target is 468 rupees, 30% higher than the current price level.

Emkay Global’s analyst Anand Dama expects a further 16% correction, arguing that the fourth quarter results “won’t capture the full extent of business disruptions caused due to the drop in UPI and bill payment market share.”

The fintech empire founded by Sharma has seen several top executives depart in the aftermath of the RBI crackdown, including Surinder Chawla, chief executive of its banking unit, and Bhavesh Gupta, formerly Paytm’s COO and President.