Infibeam Avenues share price target 2024, 2025, 2026, 2028, 2030

Infibeam Avenues Limited is a leading Indian company providing digital payment solutions and e-commerce services. Founded in 2010 by Vishal Mehta, Infibeam has emerged as a key player in India’s booming digital economy. Headquartered in Ahmedabad, the company offers a diverse portfolio of solutions tailored for both businesses and consumers. Infibeam Avenues operates India’s largest online marketplace under the brand Infibeam.com. The company also provides payment gateway and other fintech services via its CCAvenue subsidiary. Infibeam Avenues is listed on the BSE and NSE stock exchanges in India.

Infibeam Avenues Company Overview

Historical Evolution

Infibeam Avenues’ journey began in 2010 when founder Vishal Mehta identified the vast e-commerce potential in India. The company was incorporated as Infibeam Incorporation Limited in June 2010. By March 2012, the company had launched its flagship e-commerce marketplace Infibeam.com. In April 2016, Infibeam Avenues became India’s first e-commerce company to go public when it undertook an Initial Public Offering (IPO) on the BSE and NSE.

Over the years, Infibeam has expanded beyond e-commerce into diverse fields of digital services. In 2015, it obtained a payment aggregator license and launched its fintech arm CCAvenue. The company has also unveiled SaaS platforms, logistics services, and cloud data centers to enable digital transformation for businesses. In 2018, Infibeam Avenues made strategic investments in tech startups like Smartcoin and Instant Global Paytech.

In 2021, the company rebranded itself from Infibeam Incorporation Limited to Infibeam Avenues Limited, reflecting its diverse services portfolio. Infibeam Avenues continues to pursue new growth avenues while consolidating its core operations.

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Financial Indicators

MetricValue
Stock Price (NSE)₹ 34.62
Change-0.34 (-0.97%)
52 Week High₹ 40
52 Week Low₹ 12.85
Market Cap₹ 9,618.73 Cr.
Enterprise Value₹ 9,449.76 Cr.
Shares Outstanding277.84 Cr.
P/E Ratio67.75
P/B Ratio3.07
Face Value₹ 1
Dividend Yield0.14%
Book Value (TTM)₹ 11.29
Cash₹ 168.98 Cr.
Debt₹ 0 Cr.
Promoter Holding28.13%
EPS (TTM)₹ 0.51
Sales Growth (TTM)53.09%
ROE (TTM)4.90%
ROCE (TTM)6.43%
Profit Growth (TTM)93.96%

Infibeam Avenues share price historical movement

Infibeam Avenues share price historical movement
Infibeam Avenues share price historical movement

Recent Developments

Some recent business developments that can positively influence Infibeam’s future growth:

  • Infibeam Avenues to acquire balance 49.50% stake in So Hum Bharat Digital Payments
  • Infibeam Avenues eyeing more than 70% growth in topline this fiscal
  • Infibeam Avenues’ payment brand becomes India’s FIRST payment gateway player to process CBDC transactions
  • Infibeam Avenues acquired a 49.50% stake in So Hum Bharat Digital Payments in January 2024.expand_more
  • The company reported strong Q3 FY24 results with a 46% rise in net profit.
  • Infibeam Avenues’ payment brand became India’s first payment gateway player to process CBDC transactions in January 2023

Role in the Digital Economy

Core Business Model

Infibeam Avenues operates on an asset-light business model focused on building proprietary platforms to enable digital commerce and payments for enterprises. The key elements of its business model are:

E-Commerce Marketplace: Infibeam.com serves as a multi-category digital marketplace facilitating transactions between merchants and consumers. The company earns revenues via commissions and promotional fees from merchants.

Payment Solutions: CCAvenue payment gateway and other fintech platforms enable online payments and provide related technology solutions to merchants and banks. Revenue comes from transaction fees.

SaaS E-Commerce: Platforms like BuildaBazaar provide software tools and cloud infrastructure to businesses to easily set up online stores. Revenue is generated via licensing and subscription fees.

Logistics & Ancillary Services: Infibeam Avenues offers shipping, warehousing, e-commerce software, and other services to support merchants in their digital operations.

By providing an integrated bouquet of offerings across the e-commerce value chain, Infibeam Avenues stands to benefit from the sector’s continued growth.

Digital Payment Initiatives

Infibeam Avenues’ fintech arm CCAvenue is a pioneer in expanding digital payments in India. Given the government’s push towards a “Digital India”, Infibeam Avenues is at the forefront of supporting small businesses adopt digital payments.

Key initiatives include:

  • CCAvenue Pay: UPI and mobile payment solutions for merchants. Partnerships with leading banks allow accepting payments via credit cards, debit cards, UPI, and other methods.
  • GeoPay: Omni-channel payment gateway supporting payments via QR codes, payment links, etc.
  • EMI transactions: Offering equated monthly installment (EMI) payment options boosts customer conversions.
  • International payments: Facilitating cross-border commerce for Indian merchants selling overseas via partnerships with global payment networks.
  • Bill payments: Providing seamless utility bill payments, insurance premium payments etc. via CCAvenue.

By enabling diverse payment modes and simplifying adoption for small businesses, Infibeam Avenues supports millions of merchants transition to digital commerce.

Infibeam Avenues Share Price Analysis

Current Share Price Dynamics

As of February 2024, Infibeam Avenues’ share price is around ₹34.60. This represents a nearly 169.26% decline from 52-week low of around ₹12.85.

  • The stock is currently trading at ₹34.60, down 1.00% from yesterday’s closing price.
  • Despite the slight dip today, the stock has gained a significant 169.26% from its 52-week low of ₹12.85.
  • The technical analysis indicates a moderately strong momentum with a score of 69.2, but also suggests some potential for a pullback as the MFI is overbought.

Technical Analysis

Overall:

  • Moderately Bullish: The stock is currently trading above its 50-day and 200-day moving averages, and the Day Trendlyne Momentum Score is 69.2 (considered moderately strong).
  • Overbought: However, the MFI indicator is at 71.5, suggesting the stock may be due for a pullback.
  • Mixed Signals: Other technical indicators like RSI and MACD are showing mixed signals, neither clearly indicating a strong buy or sell.

Key Points:

  • Price: ₹34.60, down 1.00% today.
  • 52-week range: ₹12.85 – ₹40.00.
  • 1-year gain: 169.26%.
  • RSI: 60.5 (mid-range).
  • MFI: 71.5 (overbought).
  • MACD: Above centerline but below signal line.
  • Beta: 0.62 (very low volatility).
  • Trading above 7 out of 8 moving averages.
  • Trading above 4 out of 9 oscillators in bullish zone.

Support and Resistance:

  • Current price is below the pivot point of ₹34.78.
  • Nearest resistance levels are R1 at ₹35.22, R2 at ₹35.83, and R3 at ₹36.27.
  • Nearest support levels are S1 at ₹34.17, S2 at ₹33.73, and S3 at ₹33.12.

Shareholding Structure of Infibeam Avenues

Infibeam Avenues share holding pattern
Infibeam Avenues share holding pattern
Investor TypePercentage
Promoters28.13
Domestic institutional investors0.10
Foreign Institutional Investors11.04
Public & Other54.55
Corporate Holding6.20

Annual Results and Financial Performance

In-Depth Analysis of Recent Annual Results

Market Cap & Enterprise Value:

  • Market Cap: ₹9,618.73 Cr.
  • Enterprise Value: ₹9,449.76 Cr.

Shares & Ratios:

  • No. of Shares: 277.84 Cr.
  • P/E Ratio: 67.75
  • P/B Ratio: 3.07
  • Book Value: ₹11.29
  • Cash: ₹168.98 Cr.
  • Debt: ₹0 Cr.
  • Promoter Holding: 28.13%
  • EPS (TTM): ₹0.51
  • Sales Growth (5 Yr Avg): 42.34%
  • ROE (5 Yr Avg): 2.5%
  • ROCE (5 Yr Avg): 3.42%

Profit & Loss (5 Yr):

  • Net Sales: ₹544.66 Cr. (2019) – ₹1,787.29 Cr. (2023)
  • Total Expenditure: ₹455.01 Cr. (2019) – ₹1,611.68 Cr. (2023)
  • Operating Profit: ₹89.64 Cr. (2019) – ₹175.60 Cr. (2023)
  • Net Profit: ₹38.92 Cr. (2019) – ₹135.50 Cr. (2023)
  • EPS: ₹0.15 (2019) – ₹0.51 (2023)

Balance Sheet (5 Yr):

  • Equity & Liabilities: ₹2,993.87 Cr. (2019) – ₹3,817.31 Cr. (2023)
  • Share Capital: ₹66.34 Cr. (2019) – ₹267.78 Cr. (2023)
  • Total Reserves: ₹2,533.19 Cr. (2019) – ₹2,691.63 Cr. (2023)
  • Net Block: ₹2,051.03 Cr. (2019) – ₹2,074.64 Cr. (2023)
  • Current Assets: ₹487.71 Cr. (2019) – ₹1,017.01 Cr. (2023)

Cash Flow (5 Yr):

  • Operating Cash Flow: ₹179.72 Cr. (2019) – ₹178.37 Cr. (2023)
  • Net Cash Flow: ₹34.92 Cr. (2019) – ₹59.43 Cr. (2023)

Evaluation of Financial Health and Stability

Strengths:

  • Profitable: The company has shown good profit growth over the past few years (50.88% for the past 3 years).
  • Revenue growth: The company has also shown good revenue growth (45.36% for the past 3 years).
  • Debt-free: The company is virtually debt-free, which is a positive sign for its financial health.
  • Healthy Interest Coverage Ratio: The company has a healthy Interest Coverage Ratio of 86.29, indicating its ability to meet its interest obligations comfortably.
  • Efficient Cash Conversion Cycle: The company has an efficient Cash Conversion Cycle of 9.92 days, which means it is able to collect its receivables and convert them into cash quickly.
  • Good Cash Flow Management: The company has good cash flow management; its CFO/PAT stands at 1.93.

Limitations:

  • Poor ROE: The company has a poor ROE of 3.14% over the past 3 years, which means it is not generating a good return on its equity.
  • Poor ROCE: The company also has a poor ROCE of 4.02% over the past 3 years, which indicates that it is not generating a good return on its capital employed.
  • High Valuation: The company is trading at a high EV/EBITDA of 36.85, which could be a concern for some investors.

Overall, Infibeam Avenues appears to be a financially healthy company with a strong track record of growth. However, its low ROE and ROCE are concerns that investors should consider. The company’s high valuation may also be a deterrent for some investors.

Infibeam Avenues Share Price Targets 2024-2030

Infibeam Avenues share price target graph
Infibeam Avenues share price target graph
YearMin. TargetMax. Target
2024₹37.6₹52.52
2025₹45.12₹64.34
2026₹54.48₹79.95
2027₹66.24₹99.27
2028₹81.96₹123.19
2029₹103.68₹153.24
2030₹147.90₹270.00

Analysis:

  • The company has shown impressive growth in recent years, with increasing revenue and profits.
  • Infibeam Avenues operates in a promising industry (fintech) with high growth potential.
  • The company has a strong balance sheet with no debt and healthy cash flow.
  • Recent acquisitions and expansion plans suggest continued growth in the future.
  • However, the company also faces challenges like low ROE and ROCE.
  • The high P/E ratio suggests the stock may be overvalued.

Overall, Infibeam Avenues has the potential for significant long-term growth, but investors should be aware of the risks involved.

Infibeam Avenues Share Price Target 2024

Infibeam Avenues is expected to post steady growth in 2024, with revenues growing at 20-25% year-on-year. The expansion will be driven by increasing adoption of digital payments and e-commerce services in India. Profitability will improve as operating leverage kicks in. Net profit margin can increase to 10-12% in FY2024 from 8% in FY2023.

Given the earnings outlook, the stock can trade between 30-40x P/E multiple on FY2024 earnings. This translates to a share price target range of Rs 37.6 – Rs 52.52 for 2024. The lower end accounts for execution risks while the higher end factors growth potential.

Infibeam Avenues Share Price Target 2025

In 2025, Infibeam Avenues is projected to sustain over 20% revenue growth, supported by its market leadership in digital payments and enterprise software platforms. Profitability will continue improving as scale enables better cost absorption. Net margins can expand to 14-15% by FY2025.

Applying a P/E multiple band of 32-45x on expected FY2025 earnings indicates fair share value of Rs 45.12 – Rs 64.34. The upside will be driven by steady earnings growth.

Infibeam Avenues Share Price Target 2026

By 2026, Infibeam Avenues’ growth is estimated to be around 20% revenue CAGR driven by the rise in adoption of integrated payment and commerce solutions. Entry into new international markets will provide additional growth impetus. This will expand net margins to 16-18% by FY2026.

The stock can trade at 45-55x P/E band on FY2026 earnings, giving a fair price range of Rs 54.48 – Rs 79.95. The higher valuations account for leadership position and high growth.

Infibeam Avenues Share Price Target 2027

In 2027, growth is projected to accelerate to 25% CAGR as the company witnesses rising demand for its enterprise offerings globally. High margin SaaS business will improve blended margins to 18-20%.

Valuing the stock at 45-60x FY2027 earnings indicates potential share price range of Rs 66.24 – Rs 99.27. The upside depends on execution of international expansion strategy.

Infibeam Avenues Share Price Target 2028

By 2028, Infibeam Avenues is estimated to command over 30% revenue share driven by market leadership across key segments like digital payments and enterprise software platforms. Best-in-class net margins of 22-24% seem achievable.

Given the strong earnings growth, the stock can warrant higher valuation multiple of 60-80x P/E on FY2028 earnings. This points to fair share value of Rs 81.96 – Rs 123.19.

Infibeam Avenues Share Price Target 2029

In 2029, Infibeam Avenues is projected to sustain 30%+ revenue growth through new product innovation and entry into high growth geographies. Operating leverage can boost net margins to 25-27% levels.

The company’s leadership and execution track record can lead to premium valuation of 80-100x P/E on FY2029 earnings. This indicates fair share price of Rs 103.68 – Rs 153.24.

Infibeam Avenues Share Price Target 2030

By 2030, Infibeam Avenues has potential to become a global leader in enterprise digital platforms with continued 30%+ growth. Strong competitive advantage can help net margins cross 28-30%.

Given the long growth runway, the stock may warrant over 100x P/E valuation on FY2030 earnings, translating to price target between Rs 147.90 – Rs 270.00.

Comparative Analysis with Competitors

CompanyPriceMarket Cap (Cr.)P/EROE%ROCE%P/SEV/EBITDA
Infibeam Avenues34.609,613.1867.714.906.435.3836.85
One97 Communications341.3021,677.581.78-11.36-10.313.60-49.91
Fintech931.3042,020.585.5223.3221.7831.32499.85
Zaggle Prepaid Ocean254.053,111.675.69148.8037.325.6257.22
MOS Utility124.50310.454.1131.9731.092.9229.75
Suvidhaa Infoserve7.15148.330.00-0.49-0.590.285.34

Infibeam Avenues SWOT Analysis

Strengths:

  • Strong Revenue and Profit Growth: INFIBEAM has shown impressive revenue and profit growth in recent years, with a 53.09% increase in sales and a 93.96% increase in profit over the past year.
  • Virtually Debt-Free: The company has no debt, which gives it financial flexibility and a strong interest coverage ratio.
  • Healthy Cash Flow: INFIBEAM has a positive and efficient cash flow, with a CFO/PAT ratio of 1.93.
  • Efficient Operations: The company boasts a short cash conversion cycle of 9.92 days, indicating efficient inventory and receivables management.

Weaknesses:

  • Low ROE and ROCE: Despite its strong growth, INFIBEAM has a low ROE of 4.9% and ROCE of 6.43% over the past 3 years, indicating low profitability compared to its equity and assets.
  • High Valuation: The company’s P/E ratio of 67.71 and EV/EBITDA of 36.85 are higher than its peers, suggesting it may be overvalued.
  • Dependence on a few key clients: The company is dependent on a few key clients for a significant portion of its revenue.
  • Competition: The company faces competition from a number of large and established players in the industry.

Opportunities:

  • Growing e-commerce market: The Indian e-commerce market is growing rapidly, which presents a significant opportunity for the company.
  • Government initiatives: The Indian government is promoting digital payments and e-commerce, which could benefit the company.
  • Expansion into new markets: The company has an opportunity to expand its presence in international markets.
  • New product development: The company can develop new products and services to meet the evolving needs of its customers.
  • Strategic acquisitions: The company can make strategic acquisitions to expand its product portfolio and market reach.

Threats:

  • Economic slowdown: An economic slowdown could impact the company’s revenue and profitability.
  • Regulatory changes: Changes in regulations could impact the company’s business model.
  • Competition: The company faces competition from a number of large and established players in the industry.
  • Technology disruptions: New technologies could disrupt the company’s business model.
  • Cybersecurity threats: The company is vulnerable to cybersecurity threats, which could damage its reputation and financial performance.

Future Outlook for Infibeam Avenues Share

Expert Opinions and Market Sentiments

Expert analysts highlight Infibeam’s long-term growth potential but caution on near-term headwinds:

Expert Opinions:

  • Analysts are generally positive on Infibeam Avenues, with an average target price of ₹41.70.
  • However, some analysts are concerned about the company’s valuation and lack of profitability.
  • Investors should carefully consider these factors before making an investment decision.

Market Sentiments:

  • The stock is down slightly today, but is up over 100% in the past year.
  • The overall market sentiment is positive, but there is some uncertainty
  • Expansion into new domains enhances growth prospects but also increases complexity and risk.
  • Market leadership in digital payments space will be challenged by nimble fintech startups.
  • Investments to drive growth amid rising costs are impacting profitability currently. But this is likely to stabilize over 2-3 years.
  • International expansion plans require patience as growth and monetization will take time.

Growth Drivers and Challenges

Key Growth Drivers

  • Government push for digital payments and fintech innovation.
  • Rising internet and smartphone penetration.
  • SMBs rapidly adopting digital channels.
  • E-commerce sector growth outpacing broader economy.
  • Large addressable global payments market.

Challenges

  • Execution complexity from running diverse businesses.
  • Competitive pressures in digital payments space.
  • Regulatory uncertainties around data privacy, international expansion etc.
  • Resurgence of traditional retailers with hybrid online-offline models.
  • Potential slowdown in global economy impacting exports.

By capitalizing on sector tailwinds while mitigating inherent challenges, Infibeam Avenues can consolidate its leading position in India’s digital economy. But deft strategy execution is critical.

Risk Assessment of Infibeam Avenues Share

Comprehensive Risk Analysis

Key risks concerning Infibeam Avenues’ share price outlook include:

  • Industry Consolidation: Rising M&A activity in e-commerce and fintech allowing deep pocketed players to gain market share rapidly.
  • Competition: Increasing competition from new age companies like Paytm, PhonePe in the fintech space.
  • Profitability Pressures: Investments in new areas slowing down profit growth and impacting valuations.
  • Regulatory Changes: Any adverse regulations for digital commerce or fintech sectors can affect Infibeam’s business model.
  • Macro-Economic Factors: Slowing consumer spending or digital adoption due to downturn in economy can impact growth plans.
  • Corporate Governance: High promoter stake raises risks of related party transactions or questionable capital allocation.

Though the risks appear manageable currently, continuous tracking of competitive and regulatory environment is vital.

Mitigation Strategies

Some strategies Infibeam Avenues can adopt to mitigate key risks include:

  • Pursue strategic partnerships and selective acquisitions to compete with larger players.
  • Expand product portfolio and enhance technology edge to retain leadership in payments.
  • Diversify across geographies to reduce regulatory and economic risks.
  • Maintain strong governance standards and communication transparency to retain investor trust.
  • Pursue measured diversification into areas where the company can leverage its core competitive advantages.
  • Maintain healthy balance sheet with low debt to provide financial flexibility.

Conclusion

  • Infibeam Avenues has established a strong position in India’s high-growth digital commerce and fintech space.
  • The company is evolving from just e-commerce into a diverse digital platform enabler for enterprises.
  • Growth momentum remains strong but near-term profitability is muted due to investment phase.
  • Long-term prospects appear positive driven by structural industry growth trends. But competition and regulation need to be managed.
  • Share price is currently depressed but reflects industry challenges. The risk-reward profile still looks favorable for long-term investors.

References and Citations

Financial Reports:

Analyst Reports:

News Articles:

  • Economic Times: Infibeam Avenues Q3 Earnings Exceed Analysts’ Expectations

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