One Mobikwik shares hit 20% upper circuit amid multiple block deals

One Mobikwik Systems share price: Shares of fintech One Mobikwik Systems were locked in the 20 per cent upper price band on Tuesday amid heavy trading volumes seen in the counter following block deals. This marked the second day of gains for the stock.  According to Bloomberg data, $14.46 million worth of shares changed hands via multiple block deals. The names of buyers and sellers could not be immediately ascertained.  Against this backdrop, One Mobikwik, which provides digital payments and other financial services, saw its shares hit the 20 per cent upper circuit of ₹242.10 on the BSE. The stock was locked in the 20 per cent upper band on NSE too. 

 

A combined 60 million shares of the company had changed hands as of 2.27 PM, with only 'buy' orders visible on both exchanges. Data on BSE shows that trading volumes had surged 45 times at the last check. So far this year, Mobikwik shares have rallied 5 per cent, while they have risen 41 per cent in six months. 

 

Positive stock market sentiment also rubbed off on investor sentiment. The BSE barometer Sensex was trading 0.70 per cent higher at 72,878 at the same time. 

 

Vipin Kumar, AVP research at Globe Capital Market, believes that Mobikwik has scope to exceed its 52-week high and rise to ₹300. 

 

"Following a sharp decline post its listing in the secondary market from 698 to 166 levels, the stock is undergoing a base formation process. At the current juncture, it is trading on the verge of a breakout from its past nine-month-long congestion range," said Kumar. 

 

Going ahead, a cross and sustenance above 248 spot levels will be a positive development that could lead the stock towards 300 and higher levels in the near term, he added.

 

Mobikwik Q1 results

The company had posted its highest-ever quarterly profit in Q1 at ₹7.6 crore. The platform GMV reached an all-time high of ₹58,700 crore, up 50 per cent year-on-year (YoY), a record GMV streak for 14 straight quarters with unit economics maintained at 13 bps.

 

It recorded a 26 per cent revenue growth amid improvement in the lending business. Direct costs fell 21 per cent YoY, while payment related direct costs were down 15 per cent YoY and lending-related direct expenses were down 40 per cent YoY, signalling cost compression at scale.

 

In the shareholders' letter, Mobikwik said that it is targeting full-year PAT positive in FY27 on the back of a strong start to the year. "Q1 acts as the baseline which we build upon. We expect GMV and revenue growth in both businesses to compound and fixed costs to stay anchored, each rupee of incremental contribution profit will flow to Ebitda and PAT," it said.

 

It expects quarterly PAT to trend upward through FY27, with some quarter-to-quarter variability. On a full year basis, it is targeting a PAT of ₹40 crore for FY27. 

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