Penny stock: Angel One says buy this share with Rs 15 price tag; see up 35% upside

Domestic brokerage firm Angel One has initiated coverage on Infibeam Avenues, a stock which is valued around sub Rs 15 levels and see up to 35 per cent upside in the stock.

The brokerage is positive on the rising demand for digital payments and strong enterprise traction across BFSI, telecom, and government sectors, aiding the financials.

Infibeam Avenues, founded in 2010 and headquartered at GIFT City, Gandhinagar, is a Indian fintech and digital infrastructure company. It operates through two verticals, Infibeam, which focuses on digital payments and AIdriven solutions, and Rediff(dot)com, which offers enterprise SaaS, AI-powered media, and consumer payment platforms.

Infibeam Avenues reported a robust financial performance for Q1 FY26, with gross revenue of Rs 1,280.2 crore, a 72 per cent increase from the previous year. Net revenue reached Rs 152 crore, up 31 per cent YoY, while adjusted profit after tax (PAT) soared 70 per cent to Rs 85.5 crore, said Angel One.

To fund growth, it successfully raised Rs 700 crore via a rights issue in FY25, with proceeds earmarked for AI infrastructure (including 12 AI data centers), scaling Rediff platforms, and strengthening its payments ecosystem.

Despite a 3 per cent year-on-year decline in total payment value (TPV) to Rs 1.93 lakh crore, the company maintained strong margins, with EBITDA at 47 per cent and PAT at 56 per cent. The payments business, 96 per cent of the company’s revenue, exhibited a 74 per cent year-on-year growth, driven by a balanced mix of credit and debit transactions, with 84 per cent of TPV from merchant discount rate (MDR)-based options, it noted.

Shares of Infibeam Avenues settled at Rs 15.60 on Tuesday, falling more than 2 per cent. The total market capitalization of the company stood at Rs 4,350 crore. The stock is down 46 per cent from its 52-week high at Rs 28.89 hit a year ago. The stock is down 33 per cent on a year-to-date basis.

Phronetic AI has started monetization, generating over $1 million annually, and is expanding AI infrastructure with an expected ROI of 18-36 months. Infibeam is strengthening its international presence in the UAE, Saudi Arabia, and Oman, with global payments revenue contribution projected to grow from under 10 per cent currently to 12-15 per cent by FY28.

Conversely, the platforms business, 4 per cent of revenue, experienced a 13.6 per cent QoQ decline due to the expiration of a significant contract, though it still grew 33 per cent YoY. Shares of Infibeam Avenues

Infibeam’s board approved transferring its e-commerce platform business to Rediff for Rs 800 crore, split equally between cash and equity. This transaction will elevate Infibeam’s stake in Rediff from 54.1 per cent to 82.7 per cent, ensuring greater strategic control and unlocking value through Rediff’s established brand and distribution network. This integration is expected to propel Rediff’s scale from a Rs 300 crore run-rate to an anticipated Rs 1,000 crore within 12 months, it said.

“We initiate a ‘buy’ rating on Infibeam with a target price of Rs 21 based on 22 times P/E assigned to its FY27E earnings,” Angle One added. “We believe the company is entering into a high growth phase with revenue and EBITDA expected to grow in high double digits. Recent corrections along with good Q1 FY26 result has made Infibeam a compelling buy at current price point.”

The brokerage firms has cited dependence on a few large merchants for TPV, exposure to currency and geopolitical uncertainties in overseas markets as key risks to its investment rationale.

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