Fino Payments Bank Ltd. share price target

Fino posted a slight 2.5% beat on PAT at Rs240mn, owing to strong momentum in CASA and the DPS segment, and partly offset by continued cannibalization of the remittance business.

Black & White report

We initiate coverage on Fino Payments Bank (Fino) with BUY and TP of Rs300 (upside of 34%). Fino has emerged as a distinctive, asset-light, and profitable payment bank, capitalizing on India’s RURBAN digitization wave.

Poised to revolutionize banking and transform India's financial landscape

Fino Payments Bank (Fino), after spending its first few years (as a payment bank) in building a distribution network, customer base and product offerings, is now gearing up for sweating its infrastructure and monetising its strong customer base of 8.3mn and merchant network of 1.4mn as of Jun’23.

Fino Payments Bank (Fino), after spending its first few years (as a payment bank) in building a distribution network, customer base and product offerings, is now gearing up for sweating its infrastructure, especially its existing customer base of 7.5mn as of Mar’23. Further, with revamped digital capabilities and improved distribution, it expects its customer base to reach 20mn by FY26.

Fino Payment Bank (Fino) continued to sustain improving trajectory in PAT margin for the third consecutive quarter – as reflected in 150bps QoQ PAT margin expansion to 6.1% in Q3FY23 vs 3.5% / 4.5% in Q1FY23 / Q2FY23, respectively.

Fino Payment Bank’s (Fino) Q2FY23 financial performance showed improvement
across business parameters as reflected in 36% QoQ growth in earnings at Rs138mn
–driven largely by 60bps QoQ gross profit margin expansion and benefits of operative
leverage.

We initiate coverage on Fino Payments Bank (Fino) with BUY rating and TP of Rs475. Fino is uniquely positioned to capture growing opportunities in rural India, led by deep-rural products like MATM (~51% market share as on Aug’21) & AEPS, tailor-made CASA accounts for under served population, and payment app called “FinoPay” targeting rural population

Public issue of 20,802,306 Equity shares of Face value Total Public Rs. 10 each, (Comprising of fresh issue of 5,199,307 Employee Reservation Equity Shares* (Rs. 300 cr.) and Offer for Sale of Total...

IPO NOTE

Fino Payments Bank Limited Issue Open: Oct 29 Nov 02 2021 Price Band: Rs. 560 577 Issue Size: 20,802,306 eq sh (Fresh issue of Rs.300 crs + offer for sale of 15,602,999 eq sh) *Issue Size Rs 1200.3 cr Reservation for: QIB atleast 75% eq sh Non Institutional Upto 15% eq sh Retail Upto 10%eq sh *Employee Upto 51993 eq sh

Fino Payment Bank Ltd was incorporated in 2017. The company offers a wide portfolio of digital financial products and services in India. It offers such products and services to the target market via a Pan-India distribution network and proprietary technologies, and since 2017, it has grown its' operational presence to cover over 90% of districts