Pine Labs shares can gain 20% on earnings growth, higher-margin mix: Investec

Pine Labs shares can gain 20% on earnings growth, higher-margin mix: Investec


Shares of fintech major Pine Labs Ltd. are trading higher by over 2% after a fresh brokerage call on Thursday, August 27. Investec initiated coverage on the stock with a ‘Buy’ rating and a price target of ₹200 per share. The target implies an upside of nearly 20% from the stock’s closing price of ₹167.03 on Wednesday.

Investec described Pine Labs as a leading merchant-focused fintech platform, with more than 2 million point-of-sale (POS) terminals, giving it a 17% market share. The company also holds a dominant position in the enterprise merchant segment, with a market share of more than 60%.

Pine Labs has leveraged its merchant base to build several value-added services, led by affordability solutions such as POS financing, the brokerage said.

The company processes around 85% of offline whitegoods buy-now-pay-later (BNPL) transactions, working with more than 450 brands and over 40 financial institutions.

Pine Labs has also built a leadership position in gift card processing, with a 90% market share, as well as in the broader prepaid payment instruments segment, Investec said.

Increasing scale and a rising contribution from higher-margin segments have driven the company’s EBITDA margin from 0% in FY23 to 13% in FY26, while PAT margin has reached 4%.

Investec expects Pine Labs to deliver 20% revenue CAGR between FY26 and FY29E, while PAT margin is expected to improve to 14% by FY29E.

Among the 10 analysts covering Pine Labs, eight have a ‘Buy’ rating and two have a ‘Hold’ rating on the stock.

Pine Labs shares ended 2.04% higher at ₹167.03 on Wednesday. The stock has declined nearly 30% so far in 2026.

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