Paytm Stock Crashes 14% Amid PIDF Uncertainty, Analysts Remain Bullish

• Paytm shares fell 14% from day's high, closing 8% down, driven by market speculation over the extension of the PIDF scheme beyond December 2025.
• Uncertainty around the PIDF scheme, which incentivizes digital payment infrastructure, could impact 20% of Paytm's operating profit if not extended.
• Paytm clarified that the impact of PIDF changes will be offset by high revenue and ambitious sales targets, reassuring investors.
• Brokerage firm Investec initiated 'Buy' coverage on Paytm with a target price of ₹1,550, citing strong tech, merchant relationships, and growth potential.
• Despite mutual funds reducing their stake for the first time since IPO, the majority of analysts (14 out of 21) maintain a 'Buy' rating on the stock.

Why It Matters: Paytm's stock fell due to PIDF uncertainty, but analysts remain positive on its long-term growth prospects.