Fino Payments Bank Share Price Target Forecast 2022, 2023, 2025, 2030

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04 January, 2022

ICICI Securities recommends Fino Payments Bank with a target price of Rs 475.

Fino Payments Bank got a buy call from ICICI Securities with a target price of Rs 475. Fino Payments Bank’s current market price is Rs 386.7. Fino Payments Bank Ltd. price can achieve set objective in one year, according to analyst.

Fino Payments Bank Ltd., founded in 2007, is a Small Cap business in the General sector with a market capitalization of Rs 3224.14 crore.

For the fiscal year ending 31-Mar-2021, Fino Payments Bank Ltd.’s primary products/revenue segments include Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds, Interest, and Interest & Discount on Advances & Bills.

Financials

The firm reported a Standalone Total Income of Rs 235.11 Crore for the quarter ended September 30, 2021, up 17.45 percent from the previous quarter’s Total Income of Rs 200.18 Crore and up 34.85 percent from the same period last year’s Total Income of Rs 174.35 Crore. In the most recent quarter, the company generated a net profit after tax of Rs 7.89 crore.

Reasons for Investing

Fino Payments Bank (Fino) is being covered by the brokerage with a BUY rating and a target price of Rs475. Fino is ideally positioned to capitalise on expanding prospects in rural India, with deep-rural products such as MATM (51 percent market share as of August 21) and AEPS, as well as tailor-made CASA accounts for the underserved and a payment app dubbed “FinoPay” that targets the rural population. On the B2B2C side, it provides CMS (110 partners) and gold / business loan distribution. Fino’s unique business strategy, which includes a diversified income stream, a merchant-led asset-light distribution model, and a deep rural network with operational presence in over 90% of districts, is the fundamental cause for the company’s turnaround in just 12 quarters. Fino, unlike other competitors, is quickly growing its organic customer base (3.4 million) and merchant base (0.8 million) without burning capital; the company’s annualised PAT margin is 4%, with total annualised throughput of Rs1.7 trillion as of September 21.

FII Holdings/Promoter

As of November 9, 2021, promoters controlled 75 percent of the firm, while FIIs owned 20.8 percent and DIIs 0.7 percent.

economictimes.com is the source for this information.


December 12, 2021

MD Rishi Gupta of Fino Payments Bank expects a long-term revenue increase of 30-35 percent.

The freshly listed Fino Payments Bank has seen significant growth across key metrics in the first half of the current fiscal year, and its managing director and CEO Rishi Gupta expects revenue to rise at around 30-35 percent on a long-term basis.

Fino Payments Bank has been profitable since the last quarter of FY20, with transaction fees accounting for the majority of its income. With its first public offering (IPO) in November of this year, it was listed on the stock markets.

“We have been a prosperous business with strong growth. Our transaction value increased by 51%, our revenue increased by 36%, and our profit increased by 36% in the first half of this year “”It increased by 73 percent,” he remarked.

“Our company is expanding, but nothing has really changed since we went public. There is also the possibility of long-term growth of 30-35 percent in both revenue and operational leverage. Our profit margins will continue to rise “Gupta, who is also the founder of Fino Payments Bank, expressed his thoughts.

He feels the bank is in a unique position among its rivals, particularly among the publicly traded ones, because it is the only profitable firm in the market and its business is expanding.

Fino, according to Gupta, is a totally distinct payments bank from other fintech competitors on the market.

“Our target demographic is much different; we’re searching for those in the middle and lower income brackets. We provide service not just digitally, but also physically. As a bank, transaction fees account for 97 percent of our revenue, and there is no credit risk in our portfolio “Further, he stated.

The payments bank plans to offer a variety of additional products for its clients in the future, including international remittances, mutual funds, and a few more consumer and corporate goods.

Fino is awaiting regulatory approval for both of these items, according to the source.
Fino Payments Bank is Fino Paytech Limited’s wholly owned subsidiary (FPL). FPL is sponsored by major investors like as Blackstone, ICICI Group, Bharat Petroleum, and the International Finance Corporation (IFC), among others.

The bank has seen a significant increase in transaction volumes in recent years as a result of digitalisation and the expansion of its banking locations.
In FY21, the payment bank’s platform facilitated over 43.4 crore transactions worth Rs 1.32 lakh crore in gross transaction value.

Fino Payments Bank, with a market share of 55%, has the largest network of micro ATMs, a merchant network of 6.4 lakh, and 25.7 lakh bank accounts as of March 2021.

timesofindia.com is the source of this information.


9 December, 2021

As the anchor lock-in period comes to an end, Fino Payments Bank drops.

Fino Payments Bank declined 1.74 percent to Rs 385.75 today, December 9, 2021, after the obligatory one-month lock-in period for anchor investors concluded.

Anchor investors are well-known institutional investors who are given shares in a company before it goes public (IPO).
Fino Payments Bank approved the distribution of 93,37,641 equity shares to anchor investors on October 27, 2021, at a price of Rs 577 per share, for a total of Rs 538.78 crore.

Fino Payments Bank’s first public offering (IPO) was 2.03 times oversubscribed. Bidding for the issue began on October 29 and ended on November 2, 2021. The IPO’s price range was set at Rs 560-577 per share.

Fino Payments Bank began trading on the stock exchanges on November 12, 2021. It was priced at Rs 548, a 5.03 percent decrease from the issue price of Rs 577.

Fino Payments Bank is a fintech firm that focuses on payments and offers a wide variety of digital financial products and services. It uses a pan-India distribution network and unique technology to provide such items and services to target audiences. By September 2021, the bank will have expanded its operating footprint to encompass over 90% of districts.

The payment company has a low-asset business strategy that relies mostly on fee and commission-based revenue from merchant networks and strategic commercial connections. Each merchant caters to their community’s banking and financial requirements, becoming the backbone of the assisted-digital ecosystem, often known as the “phygital” delivery model (i.e., a combination of physical and digital). The use of data analytics improves the merchant’s capacity to cross-sell the bank’s third-party goods to current clients, resulting in increased potential income and the ability to better tailor the products and services supplied.

In the quarter ending June 2021, the bank had a net profit of Rs 3.13 crore on a net total income of Rs 203.19 crore.

business-standard.com is the source for this information.


12 NOVEMBER 2021

Fino Payments Bank’s stock has dropped approximately 11% since its first public offering. What are the options for investors?

Despite a fantastic gain in the equities market, shares of fintech business Fino Payments Bank reversed by up to 11.5 percent intraday on November 12 — the first day of trading on the bourses. Following its first public offering, experts had conflicting feelings about the stock.

A pre-opening price of Rs 548 was seen for the stock. It began at Rs 544.35, a 5.7 percent discount to the issue price of Rs 577, and achieved an intraday high of Rs 583.35 at 10 a.m., but quickly retreated and traded lower.

It dropped to Rs 510.80, an 11.5 percent drop from its IPO price. On the BSE, it was trading at Rs 520.45, down 9.80 percent, at 13:55 hours. By that time, the BSE Sensex had risen 700 points.

‘Hold the stock,’ says the narrator.

“Fino has a solid leading position within the Indian fintech market, thus we advocate holding the stock for the long term.” The Ministry of Electronics and Information Technology placed it third among banks in enabling digital transactions in February 2020, and it had the largest network of micro ATMs in August 2021,” says Astha Jain, Senior Research Analyst at Hem Securities.

According to Ankur Saraswat, Research Analyst at Trustline Securities, if investors wish to make a long-term bet on low-cost banking in an underserved market with a distinctive business model, the stock might be bought on dips or corrections.

Fino Payments Bank provides a wide range of financial products and services, the majority of which are digital and geared toward payments. It used a public issuance to raise Rs 1,200.29 crore. The offer was 2.03 times subscribed to.

Since 2017, the firm has expanded its operating reach to encompass over 90% of districts as of September 2021, and its platform facilitated transactions of Rs 43.49 crore in FY21, with a gross transaction value of Rs 1.32 lakh crore.

Its business strategy is asset-light, relying mostly on fee and commission-based revenue through merchant networks and smart commercial agreements.

It offers a variety of current and savings accounts (CASA), debit cards and related transactions, domestic remittance facilitation, banking functions, cash withdrawals and deposits, and cash management services.

“Payments banks that have an asset-light strategy and a distinctive next-generation tech-driven network can better serve potentially larger unserved and underserved groups. Investor confidence is boosted by marquee investors such as ICICI Group, Blackstone, and others “Saraswat opined.

Concerns about value and competition

However, he claims that fierce competition and the growing digitalisation of payment infrastructure (such as UPI) are making it difficult for Fino to maintain and acquire merchants/agents and customers. “Paytm, PhonePe, and Google Pay’s expanding popularity may have a negative influence on Fino’s transaction volume and value.” As a result, this fintech firm is up against intense competition.”

The company, however, gets a “avoid” recommendation from Aayush Agrawal, Senior Research Analyst, Merchant Banking, Swastika Investmart, due to its high valuation, low entry barriers, and regulatory concerns. Investors should search for alternative options, he recommends.

“The firm has a short history, but its profit margins may increase. Fino Payments is a fast-growing fintech firm with a one-of-a-kind stock exchange listing. When we factor in last year’s profit, the PE ratio is around 235. It has, however, carried forward losses, which is a serious issue “According to Agrawal.

Fino Payments Bank has been profitable since the fourth quarter of fiscal year 2020, with a profit of Rs 20.47 crore reported in FY21, compared to a loss of Rs 32.03 crore in FY20. Revenue climbed to Rs 791 crore from Rs 691.3 crore in the same period.

It made a profit of Rs 3.12 crore in the quarter ending June 2021, up from Rs 1.85 crore the previous fiscal year, and sales increased to Rs 206.2 crore from Rs 151.3 crore in the same time.

“Profits have been scarce throughout the company’s history.” Before investing, long-term investors may want to wait for further scaling up and profitability “Gaurav Hinduja, an analyst at GEPL Capital, agrees.

moneycontrol.com is the source for this information.


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