Why Infibeam Avenues Share Price is Rising

Just as a fun exercise, we ran a query on the entire universe of listed stocks and pulled out the monthly performance of stocks which start with the letter 'I'.

Some additional criteria that we put was the share price at the start of 2024 should be under Rs 100 and current price should also follow the same criteria.

Out of the 90 stocks that made the cut, only 23 are trading in red while the rest have rallied with gains ranging up to 114%!

Company	Month-on-Month Performance
IFCI Ltd.	114%
Integra Essentia Ltd.	74%
Infibeam Avenues Ltd.	71%
Innovatus Entertainment Networks Ltd.	59%
IRB Infrastructure Developers Ltd.	56%
Indowind Energy Ltd.	55%
Indian Bright Steel Company Ltd.	54%
India Cements Capital Ltd.	53%
Integra Switchgear Ltd.	51%
Impex Ferro Tech Ltd.	49%

Data Source: Equitymaster

Among the stocks at the top of this list, Infibeam Avenues share price is still showing signs of momentum after today's 5% rally.

In the past one month, share price of this fintech company has rallied over 70%.

Let's find out why...

#1 Blockbuster Q3 Numbers

The sharp rally in recent days comes after the company released its Q3FY24 earnings on 23 January 2024.

In the quarter ended December 2023, the company achieved its highest-ever quarterly profit of Rs 421 million (m), up 64% compared to last year's Rs 257 m. Revenue jumped 33% reaching Rs 1.1 billion (bn).

The company attributed this stellar growth to factors such as the festive season and the growing adoption of the CCAvenue payment solution by merchants.

Infibeam added over 200,000 merchants in CCAvenue.

Along with growing relationship with bank partners, Infibeam Avenues also gave credit to the impact of the RBI licensing regime, which is setting high standards for fintech players and creating significant entry barriers for new players.

What Next?

Infibeam Avenues has guided for gross revenues of Rs 33 bn and a net profit of Rs 1.5 bn for FY24. The company aspires to touch US$ 1 bn in revenue (around Rs 83 bn) by the end of March 2026.

The fintech company recently acquired 49% stake in Primid Fintech.

This acquisition will allow Infibeam to scale its payment processing business and a direct entry into the capital market software tech segment.

The company is also in the process of acquiring 49.5% equity in So Hum Bharat, which would become a wholly owned subsidiary of Infibeam Avenues.

The buzzword artificial intelligence or AI seems to be working for Infibeam as it has launched an AI hub at GIFT city, Gandhinagar.

It also has an MoU with Gujarat government worth Rs 20 bn for building and developing the AI hub.

In the international markets, it's working on expanding the business in UAE and Saudi Arabia.

Moreover, it has also applied for a retail payment network license and now waiting to hear back from the regulator.

As can be seen, Infibeam has a lot going on right now. There was a time when many market pundits deemed the company as a lost cause, but Infibeam was evolving as a fintech company, aggressively diversifying into multiple streams.

As you'd expect, fintech is a space everyone and their uncle wants to get into. Even well-established banks and financial institutions in India have realised the importance of technology innovation.

As the fintech space evolves, Infibeam looks prepared and it's taking the acquisition route by acquiring smaller companies.

This strategy right now, appears very bullish and a lot more exciting.

How Infibeam Avenues Share Price has Performed Recently

In the past five days, Infibeam Avenues share price has rallied 18%.

In the past one year, shares are up over 135%.

Infibeam Avenues share price has a 52-week high of Rs 40 touched today and a 52-week low of Rs 12.9 touched on 28 March 2023.

Here's a table comparing Infibeam with its peers.

Comparative Analysis

Company	Infibeam Avenues	Paytm	PolicyBazaar	Zaggle Prepaid
ROE (%)	4.6	-14.9	-10.2	66.7
ROCE (%)	6.1	-12.7	-8.6	25.4
Latest EPS (Rs)	0.5	-16.3	-0.1	1.9
TTM PE (x)	71.1	0.0	0.0	123.1
TTM Price to book (x)	3.1	3.0	7.9	5.3
Dividend yield (%)	0.1	0.0	0.0	0.0
Industry PE	0.0
Industry PB	4.3

Data Source: Ace Equity

About Infibeam Avenues

Incorporated in 2017, Infibeam Avenues is in the business of software development services, maintenance, web development, payment gateway services, ecommerce, and other ancillary services.

The company's main aim at present is to emerge as a key player in the AI-based fraud detection and prevention market.

It has made an investment of more than Rs 1 bn by creating a new AI Hub, as an extension to its GIFT city hub.

To know more, check out Infibeam Avenues financial factsheet and its latest quarterly results.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...