Shares of One MobiKwik Systems Ltd., the parent company of digital payments provider MobiKwik, tumbled 13% on March 17, hitting a new all-time low of INR 231.1. The sharp decline comes as the company’s three-month shareholder lock-in period ended, making 46 lakh shares (6% of outstanding equity) eligible for trade.
The stock has now slipped further below its IPO price of INR 279 and the listing price of INR 440, reflecting sustained selling pressure post-listing.
Financials Add to the Pressure
MobiKwik reported a net loss of INR 55.3 crore in the December quarter, a significant downturn from a profit of INR 5.3 crore in the same quarter last year. The company’s losses also widened from INR 3.6 crore in the previous quarter, raising investor concerns over profitability.
Despite the bottom-line struggle, revenues grew 17.7% year-on-year to INR 269.5 crore, while total income saw an 18.6% increase to INR 274.5 crore. However, investors seem to be focusing more on the widening losses rather than the revenue growth.
Is There an Upside? InvestingPro’s Valuation Insights
With MobiKwik shares down 24.9% in the last 30 days, bargain hunters may be eyeing a mean reversion trade. InvestingPro’s Fair Value feature estimates the stock’s intrinsic worth at INR 264.5 per share, implying a 7% upside from the current market price of INR 247.3.
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For investors seeking clarity on whether a stock is overvalued or undervalued, InvestingPro’s highly precise valuation tool leverages multiple financial models to derive realistic fair values.
A Potential Turnaround Play?
While concerns over profitability persist, the current stock price drop could offer an opportunity for long-term investors. If the company can improve its bottom line and sustain revenue growth, a potential rebound might be on the horizon.
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Read More: Stock Up 34% in a Month: Here’s How Fair Value Helped Capture the Rally
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