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Buy Infibeam Avenues; target of Rs 28: KR Choksey

KR Choksey is bullish on Infibeam Avenues has recommended buy rating on the stock with a target price of Rs 28 in its research report dated May 11, 2022.

May 12, 2022 / 09:04 PM IST
 
 
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KR Choksey's research report on Infibeam Avenues


On a consolidated basis, Infibeam’s gross revenue grew 83.6% YoY (-6.9% QoQ) to INR 3,695.0 mn. This was driven by sharp jump in transaction processed value (TPV) and Net Take Rates (NTRs). Transaction Processed Value (TPV) increased 69.7% YoY (+13.4% QoQ) to INR 855.00 bn in Q4FY22. Net revenue (NTR), which accrues to the company, improved 15.2% YoY (+8.6% QoQ) to INR 760.0 mn or 6.7 paisa in Q4FY22. However, EBITDA margins declined 628 bps YoY (+253 bps QoQ) to 12.1% in Q4FY22 due to 21.4% YoY (+1.0% QoQ) rise in employee expense in Q4FY22. The net profit came at INR 282.4 mn for Q4FY22, down 10.6% YoY (+16.8% QoQ) due to sharp rise in depreciation costs besides YoY fall in EBITDA margins. Depreciation rose 44.6% YoY and 23.5% QoQ to INR 163.0 mn. Also, PAT margin declined by 802 bps YoY (+155 bps QoQ) to 7.6%.



Outlook


As such, we lower the TP (from post bonus implied TP of INR 43.0 or INR 86.0 before bonus) to INR 28.0 and maintain “BUY” on the shares as it indicates an upside potential of 83.0% over the CMP of INR 15.

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first published: May 12, 2022 09:04 pm
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