Mobikwik Shares Hit 20% Upper Circuit Amid Multiple Block Deals

Mobikwik Shares Surge to Upper Circuit as Block Deals Fuel Trading Activity

The fintech company Mobikwik sees a significant uptick in share price amid heightened trading volumes and positive market sentiment.

Significant Trading Volume and Price Movement

On Tuesday, shares of Mobikwik were locked at ₹242.10 on the BSE, marking a 20% increase, following a surge in trading volumes. According to Bloomberg data, approximately $14.46 million worth of shares exchanged hands through various block deals. By 2:27 PM, around 60 million shares had been traded, with only buy orders visible on both the BSE and NSE, indicating strong demand.

This marked the second consecutive day of gains for Mobikwik, which has seen its stock rise 5% year-to-date and 41% over the past six months. The overall positive sentiment in the stock market, with the BSE Sensex up 0.70% at the same time, likely contributed to this bullish trend.

Analyst Insights on Future Performance

Vipin Kumar, AVP of research at Globe Capital Market, has expressed optimism regarding Mobikwik’s potential to surpass its 52-week high, projecting a rise to ₹300. He noted that the stock is currently undergoing a base formation process after experiencing a significant decline from its listing price of ₹698 to ₹166. Kumar emphasized that the stock is on the verge of breaking out from a nine-month-long congestion range.

He pointed out that a sustained trading level above ₹248 could signal further upward momentum, potentially leading the stock towards higher levels in the near term.

Mobikwik’s Strong Q1 Performance

In its latest quarterly results, Mobikwik reported its highest-ever profit of ₹7.6 crore for Q1, alongside a record Gross Merchandise Value (GMV) of ₹58,700 crore, reflecting a 50% year-on-year increase. This marks the company’s 14th consecutive quarter of record GMV, with unit economics remaining stable.

The company also reported a 26% revenue growth, driven by improvements in its lending business. Notably, direct costs decreased significantly, with payment-related costs down 15% and lending-related expenses down 40% year-on-year, indicating effective cost management.

Future Outlook and Growth Projections

In its shareholders’ letter, Mobikwik outlined its ambition to achieve a positive profit after tax (PAT) by FY27, building on the strong Q1 performance. The company anticipates continued growth in GMV and revenue across its business segments, with fixed costs remaining stable. It projects a PAT of ₹40 crore for FY27, with expectations for quarterly PAT to trend upward despite some variability.

Key Highlights

• Mobikwik shares hit a 20% upper circuit limit at ₹242.10.
• Trading volumes surged, with $14.46 million worth of shares changing hands.
• Analysts project potential price targets of ₹300 based on current momentum.
• Q1 results showed a record profit of ₹7.6 crore and a GMV increase of 50% YoY.
• Mobikwik aims for a PAT of ₹40 crore by FY27, indicating strong growth prospects.

Investor Note: As Mobikwik continues to demonstrate strong quarterly performance and positive market sentiment, investors may want to monitor the stock for potential growth opportunities, particularly if it sustains trading above key resistance levels.