One Mobikwik Gets 'Buy' As Dolat Capital Initiates Coverage, Sees 79% Upside

Dolat Capital Report

Based on the DCF valuation, we assign a ‘Buy’ rating with target price of Rs 500 (implies 1.2 times enterprise value/sales, EV/Ebitda of 35 times, PE of 64 times on FY27E).

One MobiKwik Systems Ltd.'s financial performance is distinguished from other fintechs due to its strategic positioning within the digital payments and digital credit industries, combined with an effective business model that emphasizes low-cost user acquisition and operational discipline.

Although the company operates on a smaller scale relative to its competitors, it has effectively created a successful flywheel effect by attracting users through its payment services and subsequently upselling financial services.

Despite the dominance of top-three Fintech players, MobiKwik still has a sizeable opportunity to improve credit access to a large untapped population. It has identified a white space (targeting beyond top decile digital users, focusing more on Tier II/III cities) for itself in the underserved market which would ensure lower competitive intensity.

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