Shares of Pine Labs rose over 4% in early trade on Wednesday, December 24, after global brokerage Jefferies initiated coverage on the company with a buy rating and a target price of ₹300 per share.
Jefferies highlighted Pine Labs’ strengthening position across digital payments at physical stores, prepaid cards, and its expanding online payments stack. The brokerage said the company’s integrated network of merchants, brands, and banks, backed by proprietary technology platforms, creates a strong competitive moat that can support sustained growth over the next several years.
According to Jefferies, Pine Labs is well placed to deliver a 23% revenue CAGR between FY25 and FY28, driven by continued expansion in merchant solutions, prepaid instruments, and its international issuing business. The brokerage noted that Pine Labs operates one of the most diversified payments ecosystems in the market, with increasing relevance in offline transactions and growing traction in online payment flows.
Jefferies also expects a sharp improvement in profitability as scale builds. It projects adjusted EBITDA margins to expand from around 15% currently to 27% by FY28, supported by operating leverage and improved monetisation across the company’s product portfolio.
The brokerage added that Pine Labs continues to trade at a discount to peers, leaving scope for a valuation re-rating if execution remains consistent. Jefferies said its buy call reflects confidence in Pine Labs’ long-term structural positioning within India’s expanding digital payments ecosystem, supported by strong merchant relationships, a widening product offering, and improving unit economics.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
