According to media reports, many experts still consider Paytm stock to be overvalued.

 Furthermore, valuing a firm that is continually changing and expanding

as well as monetising its operations, is tough.

The industry in which Paytm operates is very competitive

 and the switching cost (to customers) is cheap, making the situation difficult.

 Jio and Amazon Pay, for example, have large coffers and may be aggressive in market expansion. 

This, along with regulatory uncertainty, makes the company's near-term prospects difficult.