Infibeam Incorporation Ltd shares can jump over 12 per cent from present levels and can hit Rs 1,062 in the next few quarters, according to brokerage firm KR Choksey Shares and Securities. Infibeam is an e-commerce company, focused on developing successful e-commerce platforms and ecosystems. In addition to Infibeam.com, a multi-category B2C e-retail site, through Infibeam BuildaBazaar (“BaB”) e-commerce marketplace, the company provides a cloud-based, modular, customisable and scalable technology platform as well as e-commerce infrastructure and logistics support for a diverse universe of merchants, products and services. Shares of Infibeam were at Rs 946.50 on Friday.
According to KR Choksey, with an e-commerce boom running in India at full-swing, the rate at which the brick and mortar retailers are transforming to an online platform is unimaginable. India’s ‘e-tail’ market stood at US$ 7 billion in 2015 and is expected to grow at a CAGR of 44 per cent to US$ 44 billion by 2020. As of FY15, Infibeam’s potential addressable market, i.e. the organised offline retail market, stands at US$ 46 Bn (Rs 3,08,200 crore). This market is expected to grow at a CAGR of 26 per cent between FY15 to FY20 to US$ 146 Bn (Rs 9,78,200 crore).
Since listing, shares of the company have risen 112 per cent till September 23, whereas benchmark BSE Sensex gained 12.87 per cent during the same period. The scrip listed at Rs 445.70 on April 4 this year. For the quarter ended June 30, 2016, the company reported a consolidated net profit of Rs 9.87 crore, up 232.45 per cent, against Rs 2.97 crore in the same period a year ago.
On the share price movement, KR Choksey said, “The stock is trading at EV/Sales (x) of 8x, 5.5x and 3.7x to its FY17E, FY18E and FY19E revenues. We believe that the Value Added Services (VAS) such as logistics, payment solutions, warehousing facilities, digital catalogue, cloud services and analytics services offered by the company dictate the premium over its peers in the E-commerce space. The stock can touch Rs 1,062.”