Buy Infibeam Avenues; target of Rs 37: KR Choksey

KR Choksey's research report on Infibeam Avenues

Infibeam Avenues reported mixed results, with profits beating our estimates despite being a miss on the top line. Gross revenue stood at INR 7,528 Mn, increased by 1.4% YoY (+3.6% QoQ), missing our estimates due to lower revenue from payment and Ecommerce business. EBIT grew to INR 512 Mn, up by 58.3% YoY (+6.2% QoQ), driven by an increase in payment take rate, which increased to 11.2bps (+2.8bps QoQ), lower operating and other business expenses, which were in line with our estimates. PAT jumped 173.5% YoY (+41.4% QoQ) to INR 696 Mn, beating our projections primarily due to higher-than-expected other income and lower tax rate. The Company has already achieved its target of double-digit NTR for FY25E and has announced promising plans for international expansion. INFIBEAM has announced the acquisition of a majority stake in Rediff.com India Ltd to begin its journey as a financial service aggregator.

Outlook

We maintain an EV/Sales multiple of 1.8x and our target price of INR 37.6. Accordingly, we retain our “BUY” rating on the shares of Infibeam Avenues Ltd.

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