8 hrs ago
Pine Labs Shares Rise as MOFSL Forecasts Further Upside
Pine Labs helps businesses accept digital payments and offers related financial products.
Its shares have gone up by 24% in one month.
MOFSL believes the shares could rise by about 30% more.
The company’s domestic payments business is expected to remain its biggest source of revenue.
Its international and prepaid-products business is also growing.
MOFSL expects transaction volumes in that business to increase strongly.
A new 0.4% fee on some merchant transactions could benefit Pine Labs.
As more business shifts toward higher-margin services, the company’s profitability is expected to improve.
Pine Labs shares have risen 24% over the past month.
MOFSL sees approximately 30% further upside in Pine Labs.
The DITP segment is expected to deliver 24.5% revenue CAGR during FY26-28.
IAP gross transaction value is projected to reach Rs 640 billion in FY26.
Adjusted Ebitda margin is estimated to increase from 9% in FY24 to 29% by FY28E.
- Who
- Pine Labs and MOFSL.
- What
- MOFSL expects approximately 30% further upside for Pine Labs shares and forecasts strong revenue and margin growth.
- Where
- Pine Labs operates in India and international markets.
- When
- Shares rose 24% over one month; forecasts cover FY26-28E, with margin estimates extending to FY28E.
- Why
- Expected growth in digital payments, merchant relationships, transaction volumes, product mix and operating leverage.
Key facts
- One-month share performance
- Pine Labs shares are up 24%.
- MOFSL upside view
- MOFSL projects approximately 30% further upside.
- Largest revenue segment
- DITP is identified as Pine Labs’ largest revenue contributor.
- DITP revenue outlook
- Revenue is estimated to grow at a CAGR of about 24.5% over FY26-28.
- IAP FY26 GTV
- Gross transaction value is projected to grow 24% year-on-year to Rs 640 billion.
- IAP revenue outlook
- IAP revenue is estimated to grow at a CAGR of 23% over FY26-28E.
- Adjusted Ebitda margin
- The margin is expected to improve from 9% in FY24 to 29% by FY28E.
Quotes
MOFSL
Brokerage firm providing analysis and estimates on Pine Labs
“While overseas operations currently operate at lower margins than the domestic business, improving scale, a richer product mix and higher processing volumes should support steady margin expansion, making IAP one of Pine Labs' fastestgrowing earnings drivers in the medium term.”
businesstoday.in
“Pine Labs is well-positioned to benefit from India's accelerating digital payments ecosystem. Its diversified product suite and deep relationships with merchants, brands and financial institutions provide multiple monetization levers beyond traditional payment processing.”
businesstoday.in
Sources
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