Shares of Pine Labs rose nearly 4 percent in intraday trading on August 27 after Investec initiated coverage on the fintech company with a ‘Buy’ rating and a target price of Rs 200 per share. The target implies an upside of around 20 percent from the previous close. Pine Labs shares gained as much as 3.7 percent during the session before paring some gains to trade up 1.5 percent. Investec highlighted Pine Labs’ strong position in merchant payments and its growing portfolio of higher-margin value-added services as key drivers of future growth. The brokerage also pointed to the company’s affordability solutions, including POS financing, as an important growth opportunity. Pine Labs currently processes around 85 percent of offline white-goods buy-now-pay-later transactions and has partnerships with more than 450 brands and over 40 financial institutions. According to Investec, rising scale and a higher contribution from high-margin businesses could support a meaningful improvement in profitability. Pine Labs’ EBITDA margin increased from virtually zero in FY23 to 13 percent in FY26, while its PAT margin reached 4 percent during the same period. For the quarter, the company reported adjusted EBITDA of Rs 126 crore, translating into a margin of 17.1 percent. Its platform processed a gross transaction value of approximately Rs 4.22 lakh crore during the quarter.

#StockInNews

776 likes·52 comments