Infibeam Avenues: Multibagger Stock Down 24% From 52-Week High – What Top Brokerages Recommend Now

Infibeam Avenues, a well-known multibagger stock, has seen its share price drop by 24% from its 52-week high of ₹42.50, which was reached on March 11, 2024. Despite this decline, the stock has been steadily climbing in recent weeks, even outperforming the broader market amid general weakness.

Key Support and Resistance Levels

The stock is currently around the previous high of ₹33-34. Rajesh Bhosale, an Equity Technical and Derivative Analyst at Angel One, suggests that if this price range is surpassed, the stock could continue its upward trajectory, potentially reaching ₹38-40. Conversely, the ₹30 mark appears to be a strong support level for the stock.

Yearly Performance and Sector Comparison

Over the past year, Infibeam Avenues’ stock price has surged by 129.69%, significantly outperforming its sector by 87.76%, according to Trendlyne data.

Q1FY25 Financial Highlights

During the company’s Q1FY25 results call, Vishal Mehta, the Chairman and Managing Director, highlighted that the first quarter’s performance was excellent. The company reported net sales of ₹119 crores, an EBITDA of ₹70 crores, a profit after tax (PAT) of ₹50 crores, and gross revenue of ₹753 crores. The company’s payment take rate has been on the rise, reaching 11.2 basis points in Q1FY25, a 33% increase from the previous year.

Strategic Acquisition of Rediff.com

Infibeam Avenues also recently finalized a deal to acquire a 54% stake in Rediff.com India Ltd., a well-known online company in India. This acquisition, which was internally funded, marks a significant milestone for Infibeam Avenues, as it expands its consumer-facing digital financial solutions with a cloud-based business email storage and collaboration platform, along with mainstream news.

Brokerage Insights and Future Outlook

KRChoksey Shares and Securities Pvt. Ltd reported that Infibeam Avenues Ltd. exceeded its Q1FY25 earnings predictions, with net revenue surpassing the 10-digit threshold. The company aims to make a greater impact on global markets, backed by its recent acquisitions and expansion plans. KRChoksey maintains an EV/Sales multiple of 1.8x, reflecting a revenue/PAT CAGR of 27.5%/41.1% from FY24-FY26E. They believe in the company’s potential for geographical diversification and TPV growth, and maintain a “BUY” rating with a target price of ₹37.6.

Dolat Capital’s Perspective

Dolat Capital Market Private Ltd also acknowledged Infibeam’s robust payment system infrastructure, which has processed over ₹4.5 trillion in TPV. The company has established itself in the competitive B2B financial sector, showing growth and profitability. Dolat Capital remains optimistic about Infibeam’s growth in both the Indian and international payments business, citing increased online credit card spending and tech investments by Indian banks. They raised their earnings projections by 12.5%/5% for FY25/FY26E and maintained an “Accumulate” rating with a target price of ₹37.