Biggest gainers & losers of the day: Infibeam soars 19%; AU Bank tanks 13%

Biggest gainers & losers of the day: Infibeam soars 19%; AU Bank tanks 13%

New Delhi: Domestic equity markets continued to scale new peaks on Tuesday, thanks to all-round buying on Dalal Street, led by IT and pharma stocks. Broader markets underperformed during the session but did not disappoint investors.Equity investors grew richer by Rs 2.7 lakh crore as the total marketcap of BSE-listed companies was just shy of Rs 250 lakh crore.The 30-share pack Sensex rose 662.63 points or 1.16 per cent to close at 57,552.39. Its broader peer NSE Nifty climbed 201.15 points or 1.19 per cent to 17,132.20. Sensex climbed to the 57,000 mark for the first time ever, while Nifty scaled 17,000 level.Infibeam Avenues and Parag Milk Food stole the show as both stocks gained more than 10 per cent, whereas AU Small Finance Bank settled with double digit cuts. Airtel and realty stocks continued to extend their gains.Here is a look at some of the biggest movers and shakers of Tuesday’s session:The internet software service provider soared 19 per cent to Rs 47.30 on the back of strong technical set up. The traded volume jumped manifold during the session, compared to the daily average on BSE.The dairy products producer zoomed 12 percent to Rs 132.75 ahead of its dividend distribution, whose record date has been fixed as September 8, 2021.The financial service player surged 8 per cent to Rs 3855 ahead of its investor/analysts call scheduled with two global players. The company is set to host Hong Kong-based Fidelity Management & Research and New York’s Royce Investment Partners on Tuesday.The healthcare facilities chain added 8 per cent to 385.75 as the euphoria continued over the acquisition of exclusive rights to aid development and provide medical services to a 500-bed hospital to be built in Saket (South Delhi) through its wholly owned subsidiary Alps Hospital.Realty stocks extended their gains amid high demand for the sector. Hemisphere Properties India and Brigade Enterprises added 7 per cent each to Rs 133.60 and Rs 333.85 respectively.After strong management commentary and fundraising plans of Rs 21,000 via rights issue, the telecom player remained in the buzz as the media reports speculated over the investment from Google in the company. The scrip settled at Rs 7, 663.70 per cent higher.The private lender tanked 13 per cent to Rs 1,130.75 after its chief risk officer resigned citing personal reasons. However, the board of the bank has approved the appointment of his replacement.The mining company shed 6 per cent to Rs 1,656.25 as the company announced September 15 as the cut-off date for the eligible members for the annual general meeting.The IT software company witnessed profit booking after a sharp rally of 25 per cent in the last one week. The scrip settled at Rs 315.30, 5 per cent lower.The industrial products maker declined 3 per cent to Rs 991 ahead of its investor/analysts meeting scheduled with Axis Securities through teleconference and video conference.

Infibeam Avenues in focus: Why PayU’s acquisition of BillDesk is positive news for the company’s stock – check details here

In a big development in the digital payment industry, PayU has bought BillDesk for USD 4.7 billion, and with this news Infibeam Avenues comes into focus, says Zee Business Senior Research Analyst Kushal Gupta in a Zee Business exclusive news on Tuesday.

Gupta says, if we go according to the media reports, Paytm, which is planning one of the biggest ever initial public offers (IPO) in the stock market industry, was aiming to acquire PayU, BillDesk and Infibeam Avenues. However, PayU taking over BillDesk, makes it Paytm’s competitor.

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Now, Paytm, which is waiting to get Securities and Exchanges Board of India (SEBI) approval for Rs 16800-crore, may takeover Infebeam Avenues before share sale to increase its valuation before IPO.

In this regard, Vikas Sethi, a Zee Business’ market analyst, says PayU buying BillDesk is positive news for Infibeam Avenues, the analyst has earlier recommended this stock and it had achieved a predicted target back then.

ZEE BUSINESS EXCLUSIVE RESEARCH PayU इंडिया ने BillDesk को $4.7 अरब में खरीदा… Paytm के IPO के पहले अब Infibeam Avenues क्यों रहेगा फोकस में? क्या है पूरा कनेक्शन? जानने के लिए देखिए ये एक्सक्लूसिव रिसर्च#ZBizExclusive @AnilSinghvi_ @KushalGupta44 pic.twitter.com/9wHVUl17rB — Zee Business (@ZeeBusiness) August 31, 2021

Amid its recent quarterly result, the company along with Reliance Jio, Google, and Facebook plans to create a new umbrella entity, for which an application has been made to the Reserve Bank of India, says Seth.

The analyst further adds that if the company receives approval for the same then it will be game-changing for the company and will overall increase the valuation of the industry. He suggests to invest in the stock for medium to long-term gains going forward.

The stock on Tuesday closed almost 19 per cent higher to Rs 47.3 per share on the BSE as compared to a 1.16 per cent rise in the S&P BSE Sensex.

Infibeam Avenues posts Rs 13 cr net profit in Q1

New Delhi: Fintech solutions provider Infibeam Avenues Ltd on Tuesday said its consolidated net profit grew 14 per cent to Rs 13 crore in the June quarter. The company had reported a net profit at Rs 12 crore in the year-ago period, it said in a statement.Its gross revenue more than doubled to Rs 216 crore in the first quarter of the current fiscal compared to Rs 98 crore in the corresponding period of FY21, it said.“We started the new fiscal year by delivering a healthy quarter. We believe in the growth of India’s digital economy and we continue to strengthen our technology advantage in improving customer experience and enabling our merchants including enterprise clients to accomplish a successful digital transformation,” Infibeam Avenues Ltd (IAL) Managing Director Vishal Mehta said.With current transaction processing value of Rs 50,000 crore per quarter and millions of full KYC merchants on Infibeam’s platform, the Artificial Intelligence-driven lending opportunity is the future growth and margin driver for the company, he added.The company said that with the “irreversible digitalisation” of Indian and global economies, it has planned to foray into data-driven credit/lending space.“Infibeam’s data-driven credit/lending will be asset-light and digital-only, targeting merchants in factoring (bill discounting) business,” it added.With the recent passing of factoring law amendments, enabling more than 9,000 non-banking financial companies to participate in the factoring (bill discounting), IAL has set its course to tap the Indian factoring market space, which is estimated to be worth USD 6 billion.“We intend to do lending as an enabler by offering credit algorithm, credit platform, frameworks and merchant database. Infibeam’s current payment gateway infrastructure processes approximately USD 18 billion payments and its software platform enables additional USD 10 billion worth of transactions of the platform,” the company said.If this trend continues, where people, institutions and organisations are adopting digitalisation at such a faster pace, IAL may soon be processing more than USD 100 billion transactions, it added.Currently, there are more than three million merchants on IAL’s platform and this is expected to reach 10 million merchants, driven by mass adoption of digitalisation.IAL is perfectly posed to capitalise on this opportunity, where it can monetise its AI-driven platform infrastructure for enabling its credit/lending business, it said.“We stay focused on making rationale investments to power our expansion in the growth and digital transformation opportunity, while sustaining our industry-leading profitability.“During the quarter, our digital payment processing volume registered strong growth despite lower discretionary spending due to pandemic and lower contribution from aviation, entertainment including hotel and hospitality sector,” IAL Chief Financial Officer Hiren Padhya said.