Mobikwik zooms 35% from Monday's low on heavy volumes post stellar debut

Till 02:43 PM; total 56.75 million equity shares worth of Rs 3,271 crore changed hands on the NSE, the exchange data shows

Shares of One Mobikwik Systems (Mobikwik) moved higher to its new high of Rs 630, as they rallied 19 per cent on the National Stock Exchange (NSE) in Tuesday’s intra-day trade amid heavy volumes in otherwise a subdued market. The stock of the fintech company has zoomed 35 per cent from its Monday’s low of Rs 467.35 on the NSE.

 

With past two days’ gain, the market price of Mobikwik has skyrocketed 126 per cent against its issue price of Rs 279 per share. Mobikwik shares made stellar debut on Wednesday, December 18, 2024, listing at Rs 528, an 89 per cent over its issue price.

 

At 02:43 PM; Mobikwik was trading 18 per cent higher at Rs 622.85, as compared to 0.08 per cent decline in the Nifty 50. The average trading volumes on the counter jumped 1.7 times and as many as 60.18 million equity shares of the company changed hands on the NSE and BSE.

 

According NSE data, total 56.75 million equity shares worth of Rs 3,271 crore have changed hands on the exchange. Currently, Mobikwik’s market capitalisation stands at Rs 4,838 crore.

 

Mobikwik is a technology-driven company that specialises in digital financial services and payment solutions. As of June 2024, the company has built a substantial user base of over 161 million and a wide merchant network of 4.26 million. Mobikwik provides a variety of services, including digital payments, credit, and investment products. The company has a vast reach, covering 99 per cent of India's pin codes.

 

Mobikwik enjoys a strong brand presence and recognition in both large and small cities across India. With 72 per cent of digital loan disbursements in Tier 3+ locations, Mobikwik is bridging the financial gap and empowering underserved regions with modern financial services.

 

The payment GMV (gross merchandise value) has grown at an annual rate of 45.88 per cent and Mobikwik ZIP GMV (Disbursements) has grown at an annual rate of 112.16 per cent from FY22 to FY24, led by new consumer and merchant additions and higher spends from existing customers.

 

Revenue grew at a compound annual growth rate (CAGR) of 29 per cent (over FY22-24) to Rs 875 crore and became profitable at both the EBITDA and PAT levels in FY24. The operating costs have consistently decreased, especially led by a declining trend in lending related expenses from 7.2 per cent in FY22 to 3.3 per cent in FY24 and 4.04 per cent in Q1FY25.

 

Mobikwik has experienced strong traction in its wealth vertical, with Assets Under Administration (AUA) rising sharply from Rs 323.68 crore as of FY22, to Rs 6,692.85 crore by June 30, 2024.

 

Considering its strong brand recall, diversified offerings, rapid scaling, consistent innovation, customer stickiness and promising industry outlook, analysts at Geojit Financial Services had assigned ‘subscribe’ rating for Mobikwik’s IPO on a long-term basis.

 

To achieve sustained growth and market leadership, the company strategically focuses on expanding and optimising its existing business segments. It aims to tap into larger revenue streams by improving the efficiency of its consumer acquisition efforts.  The company is preparing to introduce additional services, such as investments and insurance, to establish itself as a comprehensive digital platform for financial services, which is expected to boost its future revenue and profits, analysts at Anand Rathi Share and Stock Brokers had said in a IPO note.