One MobiKwik share price advances 8% on heavy trading volumes; details here

One MobiKwik share price: Financial technology company One MobiKwik shares popped as much as 7.91 per cent to hit an intraday high of Rs 268 apiece amid heavy volumes.

 

By 11:30 AM, over 0.81 million shares worth Rs 21.27 crore were traded on the BSE, while the National Stock Exchange (NSE) saw over 13.53 million shares worth Rs 355.92 crore change hands.

 

In the previous trading session, One MobiKwik's shares witnessed their worst performance since listing on Dalal Street, plunging nearly 15 per cent after anchor investors offloaded their stakes following the expiration of the final lock-in period.

 

One MobiKwik IPO listing

 

One MobiKwik shares made a strong debut on Dalal Street, on December 18, 2024. The company's shares opened at Rs 442.25 on the BSE, marking a 58.51 per cent premium over the IPO allotment price of Rs 279. 

 

On the NSE, MobiKwik shares listed at Rs 440, reflecting a slightly lower premium of 57.70 per cent. As a result, investors who received MobiKwik shares during the IPO saw a profit of approximately Rs 163.25 per share. READ MORE 

 

Financially, Mobikwik reported a revenue decline of 7.3 per cent Q-o-Q, due to steeper than expected ramp down in book now pay later (BNPL) disbursals. The financial services revenue also declined 29 per cent Q-o-Q, but payment services grew 4.7 per cent Q-o-Q. Its operating profit margin (OPM) loss was at 19 per cent due weak top-line performance

 

According to Dolat Capital analysts, the company continues to guide robust growth in Payments (added 5 million users/1,10,000 merchants) supported by Pocket UPI & Rupay Credit cards. 

 

The financial services business pain seems to have bottomed out, said analysts, with near term growth to be led by ZIP EMI products (DLG backed) & monetisation of its new financial products (Wealth AUA up 11% QoQ). 

 

Noting the impact of the financial services business, analysts expect profit after tax (PAT) loss to widen in FY25E (Rs 1 billion now versus Rs 180 million previously), and lower FY26E/FY27E earnings by 4.1 per cent/5.4 per cent. 

 

“We believe the opportunity for growth on payments rail and financial product distribution would accelerate as IPO proceeds get deployed on growth strategy. Given sharp correction, we revise our rating to ‘Buy’ with TP of Rs. 700 which implies 2x E.V/Sales or EV/Ebitda of ~65x,” said Dolat Capital analyst, in a note. 

 

About One MobiKwik 

 

Incorporated in 2009, One MobiKwik Systems Ltd (OMSL) is among the leading digital banking platforms that offers a wide range of financial products designed for both consumers and merchants. 

 

Through its MobiKwik platform, OMSL operates a tech-first, application-based business that provides a variety of payment and digital financial services. The company has built a two-sided payments network, connecting consumers and merchants. With 161.03 million registered users and over 4.26 million merchants enabled to accept online and offline payments, MobiKwik has expanded its offerings to include digital credit, investment, and insurance products.

 

MobiKwik's services are organised into distinct verticals, such as Payment Services and Financial Services. The payment services offered include merchant payment ecosystems, recharge and bill payments, credit card bill payments, and UPI-based transactions. 

 

The financial services vertical includes innovative products like MobiKwik ZIP (a 30-day interest-free credit line), ZIP EMI (installment-based personal loans), and Merchant Cash Advances, which provide accessible credit to businesses. The platform’s versatility allows consumers to make payments via various methods such as MobiKwik Wallet, UPI, cards, and pay-later options.

 

The market capitalisation of One MobiKwik is Rs 2,068.40  crore, according to BSE. 

 

At 11:43 AM, One MobiKwik shares were trading 7.21 per cent higher at Rs  266.25. In comparison, BSE Sensex was trading 1.19 per cent higher at 75,054.34 levels.