Infibeam Avenues (BSE:539807) - Share price, News & Analysis

Q: What is the Fair Price of 539807 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

539807 (₹14.89) is trading above our estimate of [[fair value]] (₹2.67)

539807 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	5/6
Past Performance	4/6
Financial Health	6/6
Dividends	2/6

539807 Stock Overview

Rewards

Earnings are forecast to grow 27.37% per year

Earnings grew by 33.6% over the past year

Risk Analysis

No risks detected for 539807 from our risk checks.

Infibeam Avenues Competitors

Vakrangee

BSE:511431

₹29.6b

Firstsource Solutions

BSE:532809

₹71.6b

BLS International Services

NSEI:BLS

₹47.8b

eClerx Services

NSEI:ECLERX

₹72.9b

Price History & Performance

Summary of all time highs, changes and price drops for Infibeam Avenues
Historical stock prices
Current Share Price	₹14.89
52 Week High	₹26.50
52 Week Low	₹12.50
Beta	1.5
1 Month Change	11.70%
3 Month Change	-4.86%
1 Year Change	-30.99%
3 Year Change	38.35%
5 Year Change	-57.95%
Change since IPO	33.63%

Shareholder Returns

	539807	IN IT	IN Market
7D	-5.3%	-0.05%	1.3%
1Y	-31.0%	-8.3%	8.1%

Return vs Industry: 539807 underperformed the Indian IT industry which returned -8.3% over the past year.

Return vs Market: 539807 underperformed the Indian Market which returned 8.1% over the past year.

Price Volatility

Is 539807's price volatile compared to industry and market?
539807 volatility
539807 Average Weekly Movement	6.3%
IT Industry Average Movement	6.9%
Market Average Movement	6.4%
10% most volatile stocks in IN Market	9.0%
10% least volatile stocks in IN Market	4.1%

Stable Share Price: 539807 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 539807's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2010	640	Vishal Mehta	https://www.ia.ooo

Infibeam Avenues Limited, a digital payment and e-commerce technology company, provides digital payment solutions, data center infrastructure, and software platforms for businesses and governments to execute e-commerce transactions. The company offers CCAvenue, an online payment gateway to ecommerce merchants to collect payments online. It also provides BillAvenue, an online bill payment platform for recurring bill payments services to customers; ResAven, a website booking engine and channel manager for hoteliers to sell and distribute hotel room inventory; Fable Fintech, a remittance technology platform for cross border payments to banks, businesses, and exchange houses; and ecommerce marketplace platform.

Infibeam Avenues Fundamentals Summary

How do Infibeam Avenues's earnings and revenue compare to its market cap?
539807 fundamental statistics
Market Cap	₹39.69b
Earnings (TTM)	₹962.00m
Revenue (TTM)	₹14.96b

41.3x

P/E Ratio

2.7x

P/S Ratio

Is 539807 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
539807 income statement (TTM)
Revenue	₹14.96b
Cost of Revenue	₹13.01b
Gross Profit	₹1.95b
Other Expenses	₹988.00m
Earnings	₹962.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.36
Gross Margin	13.04%
Net Profit Margin	6.43%
Debt/Equity Ratio	0.2%

How did 539807 perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

7%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 539807 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 539807?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 539807. This is calculated by dividing 539807's market cap by their current preferred multiple.
What is 539807's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹39.69b

539807 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.5x
Enterprise Value/EBITDA	22.9x
PEG Ratio	1.5x

Price to Earnings Ratio vs Peers

How does 539807's PE Ratio compare to its peers?

539807 PE Ratio vs Peers

The above table shows the PE ratio for 539807 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	26x
511431 Vakrangee	32.6x	n/a	₹29.6b
532809 Firstsource Solutions	14.7x	17.3%	₹71.6b
BLS BLS International Services	39.4x	28.6%	₹47.8b
ECLERX eClerx Services	17.1x	9.4%	₹72.9b
539807 Infibeam Avenues	41.3x	27.4%	₹39.7b

Price-To-Earnings vs Peers: 539807 is expensive based on its Price-To-Earnings Ratio (41.3x) compared to the peer average (26x).

Price to Earnings Ratio vs Industry

How does 539807's PE Ratio compare vs other companies in the IN IT Industry?

Price-To-Earnings vs Industry: 539807 is expensive based on its Price-To-Earnings Ratio (41.3x) compared to the Indian IT industry average (26.8x)

Price to Earnings Ratio vs Fair Ratio

What is 539807's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

539807 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	41.3x
Fair PE Ratio	32.3x

Price-To-Earnings vs Fair Ratio: 539807 is expensive based on its Price-To-Earnings Ratio (41.3x) compared to the estimated Fair Price-To-Earnings Ratio (32.3x).

Share Price vs Fair Value

What is the Fair Price of 539807 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 539807 (₹14.89) is trading above our estimate of fair value (₹2.67)

Significantly Below Fair Value: 539807 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Infibeam Avenues forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

27.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 539807's forecast earnings growth (27.4% per year) is above the savings rate (6.8%).

Earnings vs Market: 539807's earnings (27.4% per year) are forecast to grow faster than the Indian market (18.6% per year).

High Growth Earnings: 539807's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 539807's revenue (26% per year) is forecast to grow faster than the Indian market (11% per year).

High Growth Revenue: 539807's revenue (26% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if 539807's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Infibeam Avenues performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

1.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 539807 has high quality earnings.

Growing Profit Margin: 539807's current net profit margins (6.4%) are lower than last year (9.1%).

Past Earnings Growth Analysis

Earnings Trend: 539807's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: 539807's earnings growth over the past year (33.6%) exceeds its 5-year average (1.8% per year).

Earnings vs Industry: 539807 earnings growth over the past year (33.6%) exceeded the IT industry 26.1%.

Return on Equity

High ROE: 539807's Return on Equity (3.1%) is considered low.

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Financial Health

How is Infibeam Avenues's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 539807's short term assets (₹10.7B) exceed its short term liabilities (₹7.8B).

Long Term Liabilities: 539807's short term assets (₹10.7B) exceed its long term liabilities (₹1.2B).

Debt to Equity History and Analysis

Debt Level: 539807 has more cash than its total debt.

Reducing Debt: 539807's debt to equity ratio has reduced from 16.8% to 0.2% over the past 5 years.

Debt Coverage: 539807's debt is well covered by operating cash flow (2226.5%).

Interest Coverage: 539807's interest payments on its debt are well covered by EBIT (62.5x coverage).

Balance Sheet

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Dividend

What is Infibeam Avenues's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.34%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 539807's dividend (0.34%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.39%).

High Dividend: 539807's dividend (0.34%) is low compared to the top 25% of dividend payers in the Indian market (1.7%).

Stability and Growth of Payments

Stable Dividend: 539807 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 539807 has only been paying a dividend for 5 years, and since then payments have not increased.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (7.1%), 539807's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (16.7%), 539807's dividend payments are well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

7.5yrs

Average management tenure

CEO

Vishal Mehta (48 yo)

7.5yrs

Tenure

Mr. Vishal Ajit Mehta serves as the Chief Executive Officer at Infibeam Digital Entertainment Private Limited. Mr. Mehta co-founded NSI Infinium Global Pvt. Ltd., in 2007 and serves as its Chief Executive...

Leadership Team

Experienced Management: 539807's management team is seasoned and experienced (7.5 years average tenure).

Board Members

Experienced Board: 539807's board of directors are considered experienced (8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/14 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31