Jefferies has initiated coverage on Pine Labs with a buy rating and a target price of ₹300 per share, highlighting the company’s strengthening position across digital payments at physical stores, prepaid cards and its expanding online payments stack. The brokerage noted that Pine Labs’ integrated network of merchants, brands and banks, supported by its proprietary technology platforms, gives it a meaningful competitive moat that can sustain growth over the next several years.
According to Jefferies, Pine Labs is well positioned to deliver a 23% revenue CAGR between FY25 and FY28, supported by growth in merchant solutions, prepaid instruments and the company’s international issuing business. Jefferies added that Pine Labs offers one of the most diversified payments ecosystems, with growing relevance across offline transactions and increasing traction in online payment flows.
The brokerage expects material improvement in profitability as scale builds, forecasting adjusted EBITDA margins rising from 15% currently to 27% by FY28, driven by operating leverage and better monetisation across its product suite. Jefferies also noted that Pine Labs’ valuation remains at a discount to peers, leaving room for re-rating if execution remains consistent.
Jefferies said its buy call reflects confidence in Pine Labs’ structural positioning within India’s expanding digital payments ecosystem, backed by strong merchant relationships, a widening product offering and sustained improvement in 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.
