Shares of Infibeam Avenues on Tuesday slipped 2.79 per cent to hit an intraday low of Rs 17.40 over its previous close of Rs 17.90. The stock eventually settled on a flat note, at Rs 17.90 on BSE. The scrip had jumped 9.48 per cent in the previous two sessions.
KR Choksey has assigned a 'Buy' call on the counter for a target price of Rs 28, suggesting a potential upside of 56.8 per cent (calculated considering Rs 17.85 as the current market price).
The brokerage said, "The industry players praised the government decisions to allow NRIs to make domestic transactions through UPI & IMPS and fresh financial outlay of Rs 2,600 crore. They believe that it will further encourage the payment service operators to deepen their infrastructures. However, they believe that such benefits should be flown to the last leg of the value chain, i.e., payment aggregators such as Infibeam Avenues."
The government has allowed crediting/debiting Non-Resident (NR) accounts in UPI and IMPS domestic transactions. "This initiative will open the gateway for NRI customers to do seamless payment/money transfer within India. It will also benefit the players in the entire payment ecosystems," KR Choksey stated.
Also, the Cabinet approved a financial outlay of Rs 2,600 crore as an incentive to promote Rupay Debit Cards and low-value BHIM-UPI transactions (person-to-merchant).
"The Centre would provide financial incentives to acquiring banks to stimulate Points-of-Sale (POS) and e-commerce transaction for the current FY2022-23," it added.
The brokerage further mentioned, "Industry experts believe that the current volume of payments requires higher support from the government. Considering the momentum in volume, the payment of council has sought about Rs 8,000 crore in support for the next fiscal, including Rs 6,000 crore for UPI person-to-merchant (P2M) transactions and another Rs 2,000 crore for Rupay debit card as MDR (Merchant Discount Rate) support.
The counter was last seen trading higher than 5-day, 20-, 50-, 100-day and 200-day moving averages. Infibeam has an average target price of Rs 28, Trendlyne data showed, indicating a potential upside of 59.54 per cent. The stock has a one-year beta of 0.97, suggesting average volatility.
AR Ramachandran from Tips2trades said, "Infibeam is forming a Tweezer top with strong resistance at Rs 18.2. A daily close below Rs 17 could lead to targets of Rs 15.75-15 in the coming days."
Around 12.09 lakh shares changed hands today on BSE, which was higher than Infibeam's two-week average volume of 10.15 lakh shares. Turnover on the counter stood at Rs 2.14 crore, commanding a market capitalisation (m-cap) of Rs 4,791.28 crore.
Meanwhile, Indian equity benchmarks rose sharply today, led by gains in consumer goods, energy and technology stocks. The 30-share BSE Sensex pack jumped 563 points or 0.94 per cent to settle at 60,656; while the broader NSE Nifty index moved 158 points or 0.89 per cent higher to finish at 18,053.
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