Pine Labs Gets First Buy Rating: Stock To ₹300

• Jefferies initiates "buy" rating on Pine Labs, targetting ₹300, a 28.5% upside.
• Pine Labs' revenue projected to grow at 23% CAGR (FY25-28) due to its network.
• Adjusted EBITDA margin expected to rise from 15% to 27% by FY28, says Jefferies.

Shares of Pine Labs Ltd. are in focus on Wednesday, December 24, after brokerage firm Jefferies initiated coverage on the stock, projecting a 28.5% upside from its previous close.

Jefferies initiated coverage with a "buy" rating on Pine Labs with a price target of ₹300 per share.

Pine Labs is leading digital payments at stores as

well as prepaid cards, and is building a share in online payments and international issuing business.

The company's network with brands, merchants and banks, with tech-platforms, is the key moat that can lead to Pine Labs' revenue to grow at a Compounded Annual Growth Rate (CAGR) of 23% over financial year 2025-2028.

Its operating efficiency can lift the adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin from 15% to 27% by FY28, according to the Jefferies note.

Its valuations are a discount to peers and can re-rate with consistent growth, Jefferies added.

Pine Labs shares listed on the exchanges on November 14 at ₹242 apiece. This marked a premium of 9.5% over the IPO price.

Three analysts now cover Pine Labs, and one analyst each have a "buy", "hold", and "sell" rating on the stock.

Pine Labs shares ended the previous trade session 0.4% higher at ₹233.5 apiece.