 "Mobikwik Q2 results: Should you buy stock ahead of nos? What analysts say")
Recently listed One Mobikwik Systems will release its third quarter ended September 30, 2024, results on Tuesday, January 7, 2025. Shares of One Mobikwik Systems made a stellar debut on bourses on December 18, 2024, with a 58.51 per cent premium over the IPO allotment price of Rs 279 on BSE at Rs 442.25 apiece.
On the National Stock Exchange (NSE), Mobikwik shares were listed at Rs 440, reflecting a premium of 57.7 per cent per share against the issue price. Currently, the stock trading at Rs 572.85 per share has gained over 120 per cent from its issue price.
Astha Jain, senior research analyst, Hem Securities Ltd believes at the current level Mobikwik stock is taking a breather post its recent runup and recommends booking partial profit for investors who had received the allotment as the company doesn't seem very strong fundamentally.
"Investors should wait and watch the Q2 results. However, if one wants to make a fresh entry then Rs 530/Rs 540 per share levels are recommended," said Jain.
Meanwhile, Vishnu Kant Upadhyay, AVP - research and advisory, Master Capital Services recommends only high-risk tolerance investors to park their money in the company from medium to long term.
"Continuing to expand the offering to a broader range of services and expansion into digital credit, investments, and insurance verticals could significantly enhance the usefulness of its platform for both new and existing consumers, thereby increasing customer engagement and loyalty," said Upadhyay.
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He added: Mobikwik's net loss and high debt pose concerns. Additionally, the intense competition in the digital payments space and regulatory risks may create a hindrance.
Mobikwik financial performance
In FY24, the company's net revenue stood at Rs 875 crore as compared to Rs 539 crore in FY23 which implied a growth of 62.2 per cent. Its profit before tax (PBT) stood at Rs 14 crore in FY24 as compared to a loss of 81 crore in FY23.
Its earnings before interest, tax, depreciation and amortisation (Ebitda) in FY24 stood at Rs 22 crore as compared to an Ebitda loss of Rs 78 crore in FY23. Ebitda margin stood at 2.5 per cent in FY24 as compared to -14.4 per cent in FY23.
One Mobikwik Systems Limited, co-founded by Bipin Preet Singh and Upasana Taku, leverages its expertise in scalable technology to drive financial inclusion for underserved populations in India. The company operates a platform business model with a two-sided payment network. Its diverse portfolio spans payments, digital credit, investments, and insurance, with continuous innovations enhancing user engagement, profitability, and platform value.