Buy Infibeam Avenues; target of Rs 19: Deven Choksey

Deven Choksey's research report on Infibeam Avenues

Infibeam Avenue’s reported gross revenue of INR 12,802 Mn., up 71.8% YoY (+10.3% QoQ), stood sharply above our estimates, outperforming the typical Q1 seasonal trend, driven by strong momentum in the payments business which grew by 74.0% YoY (+11.7% QoQ) to INR 12,265 Mn., while the E-com platform’s revenue grew by 33.4% YoY (-13.6% QoQ) to INR 537 Mn. TPV declined by 2.5% YoY (- 20.2% QoQ) to INR 1,927bn, while the payments NTR declined by 7.1% YoY (-1.9% QoQ) to 10.4bps.

Outlook

We have rolled forward our valuation basis to Jun’27 estimates. We value Infibeam Avenues at 24.0x Jun’27 EPS, implying a target price of INR 19.0. We reiterate our “BUY” rating on the stock.