One Mobikwik Systems IPO Review

MobiKwik is India's leading digital banking platform, offering a wide range of financial products for both consumers and merchants, including payments, digital credit, and investments. As a technology-first company, it leverages big data analytics and deep data science (including machine learning) to continuously delight users and merchants on its platform. The Company’s mission is to build world-class financial products for Bharat! With 40 million credit pre-approved users, MobiKwik is focused on providing the unserved Indian population their first access to credit.

The Company is led by strong and experienced Promoters, namely, BIPIN PREET SINGH, UPASANA RUPKRISHAN TAKU, KOSHUR FAMILY TRUST AND NARINDER SINGH FAMILY TRUST.

The revenues from operations for Fiscals ended 2024, 2023 and 2022 were ₹8,903.15 Million, ₹5,611.16 Million and ₹5,432.19 Million respectively. The EBITDA for Fiscals ended 2024, 2023 and 2022 were ₹372.20 Million, ₹-559.20 Million, and ₹-1,154.06 Million, respectively. The profit after tax for Fiscals ended 2024, 2023 and 2022 were ₹140.79 Million, ₹-838.14 Million, and ₹-1,281.62 Million respectively.

For the One Mobikwik Systems IPO, the company is issuing shares at a pre-issue EPS of ₹2.38 and a post-issue EPS of ₹1.86. The pre-issue P/E ratio is 117.23x, while the post-issue P/E ratio is 153.95x against the Industry P/E ratio is 34x. The company's ROCE for FY24 is 9.28% and RoE for FY24 is 9.22%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of One Mobikwik Systems showing potential listing gains of 27.95%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the One Mobikwik Systems Limited IPO for Listing gain or long term investment purposes.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information.

About the Author
CA Abhay Kumar (Also known as CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.
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