Infibeam Avenues Surges 100% in a Year: Expert Sees Key Support at ₹27 – ₹25, Targeting ₹36 Next

On Monday, Infibeam Avenues’ share price opened at ₹31.74 on the BSE, peaked at ₹32.32, and dropped to a low of ₹31.57 during the session. Ruchit Jain, Lead Research Analyst at 5paisa, suggests that while the stock’s short-term trend is sideways, it has strong support between ₹27 and ₹25. As long as this support holds, the stock may continue trading sideways, with resistance around ₹36.

New Partnership for AI Development

Infibeam Avenues has embarked on an innovative project with the Entrepreneurship Development Institute of India (EDII) in Ahmedabad. They signed a Memorandum of Understanding (MoU) to position EDII at the forefront of integrating advanced AI technology, aiming to accelerate AI adoption among companies, start-ups, and MSMEs.

Dr. Sunil Shukla, Director General of EDII, emphasised that this partnership aligns with EDII’s mission to promote innovation and entrepreneurship. At EDII, Infibeam introduced its AI Facility Manager, a tool designed to integrate visual data from campus CCTV cameras to monitor entry and exit points. This tool aims to enhance operational efficiency at the institute, eventually expanding to cover resource allocation, occupancy monitoring, and security management.

Mixed Q4 Results

According to a research report by KRChoksey Shares and Securities, Infibeam Avenues posted mixed results for Q4. Despite lower-than-expected revenue, profits surpassed expectations. Revenue increased by 11.4% year-on-year (YoY) to ₹726.9 crore, driven by a 53% YoY rise in Transaction Processing Value (TPV) to ₹226,600 crore and an improvement in Net Take Rate to 9.2 basis points from 9.0 bps.

EBIT (Earnings Before Interest and Taxes) grew by 43.7% YoY to ₹48.2 million, leading to an improved EBIT margin of 6.6%. This growth was supported by lower operating expenses, personnel costs, and other expenses, despite higher depreciation. Net profit after tax (PAT) increased by 28.1% YoY to ₹49.2 crore, with PAT margins rising to 6.8%.

Future Plans and Revised Targets

Infibeam Avenues aims to expand internationally into Saudi Arabia, the UAE, and the US through investments, acquisitions, and new strategies, targeting a double-digit Net Take Rate by FY25E. In India, the company plans to increase its offline presence with TapPay and offer financial products to its merchants.

KRChoksey has increased their EV/Sales multiple to 1.8x (from 1.3x), expressing confidence in the company’s vision and growth plans, with better geographical diversification and higher international revenue. However, they have adjusted their sales growth forecast for FY24-FY26 to a compound annual growth rate (CAGR) of 27.5%, acknowledging that the company might take longer than expected to achieve its growth targets. Consequently, they have also lowered their target price to ₹37.6 (from ₹41.7).

This latest development suggests that while Infibeam Avenues shows strong potential, investors should be mindful of the company’s execution timeline and market conditions.