Infibeam Avenues share price jumps over 100% in a year; what’s next for this multibagger stock?

  • Multibagger stock: Infibeam Avenues share price sees a 100% surge in a year, with an 18% potential increase from its current price predicted by KRChoksey Shares. The firm plans international expansion in Saudi Arabia, UAE, and the US, along with enhancing financial products for merchants in India.

Dhanya Nagasundaram
First Published24 Jun 2024, 04:59 PM IST
Multibagger stock: Infibeam Avenues share price today opened at  <span class='webrupee'>₹</span>31.74 apiece on BSE, the stock touched an intraday high of  <span class='webrupee'>₹</span>32.32, and an intraday low of  <span class='webrupee'>₹</span>31.57.
Multibagger stock: Infibeam Avenues share price today opened at ₹31.74 apiece on BSE, the stock touched an intraday high of ₹32.32, and an intraday low of ₹31.57. (iStock)

Multibagger stock: In just a year, Infibeam Avenues share price soared by over 100%, providing investors with multibagger profits. With a target price of 37.6, brokerage KRChoksey Shares and Securities Pvt Ltd anticipates an additional 18% increase in value from the stock's closing BSE price of 31.90 on Monday. Since Infibeam Avenues is expected to develop significantly as a result of recent acquisitions, global prospects, and new services, the brokerage has maintained its "BUY" recommendation for the company.

On Monday's session, Infibeam Avenues share price opened at 31.74 apiece on BSE, the stock touched an intraday high of 32.32, and an intraday low of 31.57. According to Ruchit Jain, Lead Research Analyst at 5paisa, the near-term trend for the stock is sideways, but it has support in the range of 27–25. Till this is intact, the stock can continue to trade sideways, with resistance seen around 36.

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In partnership with the Entrepreneurship Development Institute of India (EDII), Ahmedabad, Infibeam Avenues has initiated a revolutionary project.

This Memorandum of Understanding (MoU), according to the exchange filing on Monday, is to position EDII as a leader in integrating cutting-edge AI technology and expedite the adoption of AI across companies, start-ups, and MSMEs.

The strategic fit between this partnership and EDII's goal of promoting innovation and entrepreneurship was underlined by Dr. Sunil Shukla, Director General of EDII.

At EDII, Infibeam unveiled its AI Facility Manager. Its first focus is on combining visual data and statistics from campus CCTVs to monitor entry and departure points.

Also Read: IREDA share price surges 4% after raising 1,500 cr via issuance of bonds

In order to improve operational efficiency throughout the institute, this facility management tool is intended to develop into a comprehensive system that includes resource allocation, occupancy monitoring, security management, and more.

As to the research report by KRChoksey Shares and Securities, Infibeam Avenues revealed mixed Q4 results, with profits above their projections despite a disappointing top line.

Due to a robust rise in Transaction Processing Value (TPV) to 226,600 crore in Q4FY24 (+53.0% YoY), coupled with an improvement in Net Take Rate to 9.2 bps from 9.0 bps, Revenue climbed 11.4% YoY to 726.9 crore.

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Strong top-line growth supported by decreased opex, personnel expenditure, and other expenses, somewhat offset by increased depreciation costs, led to EBIT growing 43.7% YoY to 48.2 million. As a consequence, EBIT Margins improved to 6.6% (+149 bps YoY). Because to decreased taxes, PAT increased 28.1% YoY to 49.2 crore. As a result, PAT Margins improved to 6.8% (+89 bps YoY).

"Infibeam Avenues plans to expand internationally in Saudi Arabia, UAE, and the US through investments, acquisitions, and new strategies, aiming for double-digit NTR by FY25E. In India, the Company plans to increase offline presence via TapPay and offer financial products to its merchants. We raise our EV/Sales multiple to 1.8x (from 1.3x) given our confidence on the Company's vision and growth plans, with better geographical diversification and higher international revenue. 

However, we reduce our FY24-FY26E sales CAGR to 27.5%, given our expectations that the company will be able to execute its plans and achieve the anticipated growth, albeit with timelines that would be longer-than-expected. Consequently, we also lower our target price to 37.6 (from 41.7)," the brokerage said. 

Also Read: Will power, defence, and railway stocks continue to attract investor interest after sharp rally?

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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News in Numbers

Numbers that help you understand news better
$5 M

394,000

$112 B

12.1%

₹133.50 Cr

₹12,300 Cr

$136 M

First Published:24 Jun 2024, 04:59 PM IST
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