KR Choksey has given Buy recommendation for Infibeam Avenues with a target price of Rs. 86 in its research report issued on Feb 04, 2022

KR Choksey’s research report on Infibeam Avenues

Consolidated revenue for Q3FY22 came at INR 3,970 mn, up 74.3% YoY (+27.7% QoQ) (vs. our estimate of INR 3,537 mn) and adjusted PAT increased by 88.8% YoY (+35.3% QoQ) to INR 241.7 mn (vs. our estimate of INR 239.2 mn) for Q3FY22. The revenue growth was driven by Transaction Processed Value (TPV) increasing at 89.7% YoY (+17.3% QoQ) to INR 754 bn (vs. our estimate of INR 731 bn) in Q3FY22 (vs. INR 398 bn in Q3FY21 vs. INR 643 bn in Q2FY22) and estimated gross take rate (GTR) (including gross transaction and non transaction services revenue) declining by 4.7 bps YoY (+ 4.3 bps QoQ) to 52.63 bps for Q3FY22. The reported Net Take Rate (NTR, based on transaction-based net revenue, 65.7% of consolidated net revenue) declined 36.5% YoY (+0.5% QoQ) to INR 6.1 bps • The company has been beating its annualized TPV guidance due to strong merchant sign ups and growth in GeM platform volumes. However, EBITDA has come lower than estimate due to lower GPMs and higher other expenses vs. estimates.


We value the company at EV/sales multiple of 3.9x on FY24E sales (4x price to sales FY24E) to arrive at a target price of INR 86 (unchanged). Accordingly, we maintain our “BUY” rating on the Infibeam stock which has an upside potential of 100% over the CMP.

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At 17:30 Infibeam Avenues was quoting at Rs 43.00, up Rs 0.15, or 0.35 percent.

It has touched an intraday high of Rs 43.45 and an intraday low of Rs 42.60.

It was trading with volumes of 266,498 shares, compared to its thirty day average of 784,669 shares, a decrease of -66.04 percent.

In the previous trading session, the share closed up 0.82 percent or Rs 0.35 at Rs 42.85.

The share touched its 52-week high Rs 58.45 and 52-week low Rs 36.80 on 24 June, 2021 and 06 May, 2021, respectively.

Currently, it is trading 26.43 percent below its 52-week high and 16.85 percent above its 52-week low.

Market capitalisation stands at Rs 5,727.79 crore.

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