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

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.

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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. 

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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.