Infibeam Avenues: This multibagger stock is down 24% from its 52-week high. Should you buy?

Infibeam Avenues share pricehas dropped by 24% from its 52-week peak of ₹42.50, which was reached on March 11, 2024. Infibeam Avenues share price has steadily climbed over the past few weeks, and despite overall market weakness, it has outperformed. Prices are currently hovering around the previous swing high of ₹33-34, and if this zone is breached, further upward movement is likely, potentially reaching ₹38-40. On the downside, ₹30 appears to be forming a strong base for this stock, highlighted Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One.

Trendlyne data shows that Infibeam Avenues' stock price increased by 129.69% over the previous year, outperforming its sector by 87.76%.

Vishal Mehta, Chairman and Managing Director, stated on the business's Q1FY25 results call this week that the first quarter's results were excellent. This comes just a week after the company released its Q1 results. He also believes that the year is off to a terrific start, with double-digit increase in net revenue, EBITDA, and profits year over year.

The business reported net sales of ₹119 crores, EBITDA of ₹70 crores, PAT of ₹50 crores, and gross revenue of ₹753 crores for the quarter. The company's payment take rate has been steadily rising; in Q1FY '25, it stood at 11.2 basis points, up 33% from the previous year.

Additionally, Infibeam Avenues declared that it has finalised a deal to acquire a 54% share in Rediff.com India Ltd., one of the most established and well-known online companies in India. An important turning point for Infibeam Avenues has been reached with this internally funded purchase, which launches the company's consumer-facing digital financial solution as an aggregator supported by a cloud-based business email storage, collaboration platform, and mainstream news.

Here's what brokerages say

KRChoksey Shares and Securities Pvt. Ltd

Better operating performance allowed Infibeam Avenues Ltd. to outperform its Q1FY25 earnings prediction, according to the brokerage's report. NTR surpassed the 10-digit threshold in Q1FY25E. The corporation wants to have a bigger impact on global markets. In addition, Infibeam declared that it will be acquiring Rediff.com India Ltd. and establishing a new company dedicated to preventing and detecting fraud.

“We retain our EV/Sales multiple of 1.8x reflecting an FY24-FY26E revenue/PAT CAGR of 27.5%/41.1%. We believe in the Company’s ability to implement its expansion plans with better geographical diversification, higher TPV growth expected, and the realisation of synergies from the acquired firms. Accordingly, we retain our target price of ₹37.6. We maintain a “BUY” rating on the shares of Infibeam Avenues Ltd as we believe the Company is set for significant growth, driven by recent acquisitions, international opportunities, and new offerings,” the brokerage said.

Dolat Capital Market Private Ltd

The brokerage stated in its analysis that Infibeam has developed a strong payment system infrastructure over the past 20 years, processing a transaction processing value (TPV) of more than ₹4.5 trillion through operating platforms and payment aggregates. It has been delivering growth and profitability while carving out a position for itself in the competitive B2B financial sector.

“Infibeam remains bullish on the growth of payments biz. (India & International) and its profitability. We raise earnings by 12.5%/5% for FY25/FY26E and expect the company to benefit from growing trend of online credit card spends and tech spends by Indian banks. Maintain ‘Accumulate’ rating with a DCF based target price of ₹37,” the brokerage said.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.