Brokerage house ICICI Securities has maintained buy rating on Paytm and IndusInd Bank despite massive correction in the two stocks.  

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Assigning buy rating to Paytm, the brokerage slashed target price of the stock from Rs 1352 to Rs 1285, which translates into an upside of 117% on Tuesday's closing price of Rs 592.40 per share on the BSE. Paytm has been making headlines for all the wrong reasons lately, including the RBI's restrictions on Paytm Payments Bank (PPBL), an associate of Paytm) and alleged reports of leaking data to Chinese firm.  

"The RBI embargo will have an adverse impact on signing up users for new PPBL wallets or savings / current accounts, until further notice," says the brokerage.

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As per ICICI Securities, it may take 8-15 months to lift restrictions. "Recent instances of embargo on a leading bank suggest lifting of restrictions may take time. In the case of concerned bank, it took 8 months to partially lift the restrictions and almost 15 months to wholly lift the same," it highlighted before slashing target price by Rs 633.
Paytm shares have corrected nearly 70 % on its listing price of Rs 1955 per share on the BSE.  

IndusInd Bank:  
The brokerage house is of the view that with disbursements reaching pre-covid levels in most retail products, revival in MFI disbursement and encouraging growth in corporate lending will lead growth towards IIB’s 2-year credit growth target of 16- 18%.

Key risks remain lower than estimated growth and credit cost not normalizing soon.

Keeping the target price unchanged for this private lender at Rs 1420 per share, it maintained a buy rating. It turns out to be an upside of 58% on Tuesday's closing price of Rs 898.20 per share.

IndusInd Bank has given a negative return of around 13% in the past one year as on March15, showed technical data of the stock.  

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)