One Mobikwik Can Rally 74%, Says Dolat Capital, Revises Rating To 'Buy' On Sharp Correction After Q3 Results

Given sharp correction, the brokerage revises rating to ‘Buy’ with target price of Rs 700 which implies two times enterprise value/sales or EV/Ebitda of ~65 times..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.One Mobikwik Systems Ltd. reported revenue decline of 7.3% QoQ (our estimate:+20%), due to steeper than expected rampdown in buy-now-pay-later disbursals. Financial services revenue declined 29% QoQ, but Payment services grew 4.7% QoQ. Operating profit margin loss was at 19% (estimate loss: 2.1%), due weak top-line perf. The company continues to guide robust growth in Payments (added 5 million Users/110,000 Merchants) supported by Pocket UPI and Rupay Credit cards. Financial Services biz. pain seems to have bottomed out, with near term growth to be led by ZIP EMI products (DLG backed) and monetization of its new financial products (Wealth AUA up 11% QoQ). Noting the impact of Financial services biz., we expect PAT loss to widen in FY25E (Rs 1 billion now versus Rs 180 million previous), and lower FY26E/FY27E earnings by 4.1%/5.4%. We believe the opportunity for growth on payments rail and financial product distribution would accelerate as IPO proceeds get deployed on growth strategy. Given sharp correction, we revise our rating to ‘Buy’ with target price of Rs 700 which implies two times enterprise value/sales or EV/Ebitda of ~65 times..Click on the attachment to read the full report:.Asian Paints, Godrej Properties, Eris Lifesciences, Kajaria, KEC International Q3 Review - HDFC Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

One Mobikwik Can Rally 74%, Says Dolat Capital, Revises Rating To 'Buy' On Sharp Correction After Q3 Results

The brokerage believes the opportunity for growth on payments rail and financial product distribution would accelerate as IPO proceeds get deployed on growth strategy.

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