Mobikwik shares zoom 15% to hit fresh record highs; is it time to book some profit?

Newly-listed One Mobikwik Systems Ltd (Mobikwik's parent) shares extended their strong upward march for the third straight session in Thursday's trade. The stock surged 14.64 per cent to hit a record high of Rs 698.30. At this price, it has delivered multibagger returns to investors by rallying 150.29 per cent over its issue price of 279.

The stock saw high trading volume today on BSE as around 39.73 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 24.98 lakh shares. Turnover on the counter came at Rs 259.50 crore, commanding a market capitalisation (m-cap) of Rs 5,312.58 crore.

Analysts largely suggested booking some profits at current levels, given the strong listing gains.

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "Given the solid gains post-listing, investors should book some profit at current market price. Those wanting to hold it should keep a stop loss placed of Rs 620. That said, fresh buying not advised."

Shivani Nyati, Head of Wealth at Swastika Investmart, said, "The company's recent shift to profitability, coupled with the growing adoption of digital payments, boosted market confidence. However, sustaining this momentum would depend on its ability to maintain profitability and carve out a niche in the competitive fintech sector." Investors are recommended to book profits, Nyati suggested.

Mobikwik, a 15-year-old Gurgram-based fintech company, is transforming digital payments with innovations like Pocket UPI, a product that enables users to make UPI (Unified Payments Interface) transactions through their MobiKwik wallet rather than directly linking a bank account.

"Since its launch in early 2024, MobiKwik has experienced a five-fold growth in wallet market share, highlighting the company's ability to drive product adoption through innovation," said its Co-founder and CFO, Upasana Taku. It currently holds a 24 per cent market share, making it the largest wallet provider in India.

For the three months ended on June 30 this year, the company reported a loss of Rs 6.62 crore with a revenue of Rs 345.83 crore. It clocked a bottomline of Rs 14.08 crore with a revenue of Rs 890.32 crore for the financial year ended 2023-24.

As of June 30, 2024, the company has 161.03 million registered users and has enabled 4.26 million merchants to make and accept payments both online and offline. MobiKwik ZIP is a flagship product that lets consumers buy now and pay later within 30 days, offering flexibility and easy repayment options.