Subscribe for One Mobikwik Systems Ltd IPO; Geojit Financial Services

Geojit Financial Services, has come out with its report on One Mobikwik Systems Ltd. The research firm has recommended to “ Subscribe” the ipo in its research report as on December 10 2024.

Broker Research

December 11, 2024 / 10:39 IST

IPO

Geojit Financial Services, One Mobikwik Systems Ltd

One Mobikwik Systems Ltd. (Mobikwik), founded in 2008, is a technology-driven company specializing in digital financial services and payments. As of June 2024, it serves over 161mn users and 4.26mn merchants. Mobikwik provides a variety of services, including digital payments, credit, and investment products. By May 2024, it had captured a 23.11% market share in the prepaid payment instruments (PPI) wallet segment by gross transaction value, making it the largest wallet provider in India. The company has a vast reach, covering 99% of India's pin codes. MobiKwik’s addressable market in FY23 is approximately USD 5.3 bn (INR 424 bn), projected to grow to ~USD 16-18 bn (INR 1.3-1.4 tn) by FY28, driven by rising internet penetration, higher disposable incomes, increasing digital penetration, and awareness.

Valuation and Outlook

At the upper price band of ₹279, Mobikwik is available at Mcap/sales of 2.5x (on FY24 financials), which appears to be reasonably priced. We assign a “Subscribe” rating for the issue on a long-term basis, considering its strong brand recall, diversified offerings, rapid scaling, consistent innovation, customer stickiness and promising industry outlook.

For all IPO report, click here