scorecardresearchInfibeam Avenues break a five-day losing streak, rallies 10%

Infibeam Avenues break a five-day losing streak, rallies 10%

Updated: 26 Dec 2022, 12:55 PM IST
TL;DR.
Infibeam Avenues receives a perpetual license from the Reserve Bank of India (RBI) for its bill payments business, BillAvenue, for operating as a Bharat Bill Payment Operating Unit (BBPOU) under the Bharat Bill Payment System (BBPS).
For the September-ending quarter, the company posted an 118% YoY jump in its consolidated net profit of  <span class='webrupee'>₹</span>40.7 crore as against a net profit of  <span class='webrupee'>₹</span>18.6 crore in the same quarter of the last fiscal. Sequentially, the net profit was up 71.72 percent.

For the September-ending quarter, the company posted an 118% YoY jump in its consolidated net profit of 40.7 crore as against a net profit of 18.6 crore in the same quarter of the last fiscal. Sequentially, the net profit was up 71.72 percent.

Shares of Infibeam Avenues, a fintech firm, opened strong in Monday's intraday trade. 

The company said it has received a perpetual licence from the Reserve Bank of India (RBI) for its bill payments business, BillAvenue, for operating as a Bharat Bill Payment Operating Unit (BBPOU) under the Bharat Bill Payment System (BBPS).

As a BBPOU, BillAvenue operates as both a biller and customer operating unit, onboarding billers and agent institutions to service customers.

The perpetual license would help the company to offer safe, secure, and uninterrupted services, the company added.

The RBI issued a framework for payment aggregators in India on March 2022. Under this framework, payment aggregators are mandated to obtain a license for acquiring merchants and provide them with digital payment acceptance solutions.

Following the development, the stock opened strongly at 15.40 apiece compared to the previous close of 14.65, breaking a five-day losing run. The stock then maintained the same momentum to reach an intra-day high of 16.20, or 10.58%. At 12:30 p.m., the stock was trading at around 15.90, up by 8.53% on the BSE.

The stock delivered a decent return of 8% over the previous three months, but the current year has been disappointing for the stock, as it has lost roughly 20% of its value.

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Stock price chart of Infibeam Avenues.

For the September-ending quarter, the company posted an 118% YoY jump in its consolidated net profit of 40.7 crore as against a net profit of 18.6 crore in the same quarter of the last fiscal. Sequentially, the net profit was up 71.72 percent.

It reported a 62.79 percent YoY rise in total revenue to 509.4 crore compared to 312.9 crore in the same period last year.

The company's operating profit rose marginally by 16 percent YoY to 40 crore from 34.5 crore, and it was down 5.88 percent compared to the preceding quarter. The total payment value during the quarter rose 44% to 92,612 crore from 64,313 crore.

Following the solid September quarter numbers, domestic brokerage KRChoksey has maintained its "buy" call on the stock with a target price of 28 apiece.

"Infibeam has been reporting very strong growth in TPVs, GTRs, and NTRs due to a robust recovery in demand and the payments mix. "With additional growth drivers like i) consistently converting EBITDA into free cash, a debt-free company, and a major capex cycle behind it, Infibeam is charting a focused growth strategy for the next 3-5 years," the brokerage noted.

Infibeam Avenues is an Indian multinational financial technology company that offers integrated and scalable digital platforms consisting of digital payment solutions under the brand name CCAvenue and enterprise software solutions under the brand name BuildaBazaar.

The company is the only listed home-grown, bootstrapped, and profitable Fintech conglomerate having a comprehensive Fintech portfolio, according to the company website.

The promoters own 30.6 percent of the shares in the company, while foreign portfolio investors own 7.1 percent. Regular shareholders hold 61.8 percent.

01 analysts polled by MintGenie on average have a 'strongbuy' call on the stock.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

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First Published: 26 Dec 2022, 12:55 PM IST