A Mobikwik can rally 74%, says Dolat Capital, modifies ratings for ‘buy’ on rapid improvement after Q3 results.

A Mobikwik can rally 74%, says Dolat Capital, modifies ratings for ‘buy’ on rapid improvement after Q3 results.


Given the rapid improvement, the brokerage modifies the rating for ‘purchase’ with a target price of Rs 700, which means two -fold enterprise price/sales or ~ 65 times ~ EV/EBITDA.

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Doolt capital report

One Mobikwiki Systems Limited reported a decline in revenue of 7.3% QOQ (our estimate:+20%), as due to the stator compared to the rampdown expected in the purchase-pe-pay-letter dysbersl. Revenue of financial services declined by 29%, but payment services increased 4.7% QOQ. The operating profit margin loss was at 19% (estimated loss: 2.1%), due to weak top-line perfect.

The company continues to guide a strong growth in payments supported by Pocket UPI and RuPay Credit Card (added 5 million users/110,000 traders). Financial Services Biz. It seems that the pain is down, with the development of close periods, the zip EMI products (DLG supported) and its new financial products (11% of the funds of the cook) have been led.

Given the impact of financial services, we expect to reduce FY25E (1 billion vs. 180 million rupees last), and low FY26e/FY27E income by 4.1%/5.4%.

We believe that the opportunity to increase the payment on the payment rail and financial products will increase as the IPO income is deployed on the development strategy. Given the rapid improvement, we modify our ratings to ‘buy’ with a target price of Rs 700, which means two -fold enterprise price/sales or ~ 65 times EV/ebitda.

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Rejuvenation

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