Pine Labs stock hits ₹166.60 on Friday, extending a 12% post-earnings rally. Analysts at Motilal Oswal and Kotak target ₹210 and ₹200, citing cross-border growth and subscription revenue shift.
Alpha Score of 68 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
Pine Labs shares opened at ₹166.60 on Friday, extending a rally that has pushed the stock above ₹160 for the first time in two weeks. The payment technology company has gained 12% since its August 6 earnings report, driven by optimism around merchant additions and cross-border payment volumes.
Traders pointed to short-covering ahead of the weekly derivatives expiry as a factor in the move. Open interest in Pine Labs futures dropped 8% while the stock rose, suggesting bears were closing positions.
Pine Labs reported June-quarter consolidated revenue of ₹625 crore, up 22% from a year earlier. Net profit climbed 18% to ₹92 crore. Merchant payment volume grew 28% year-on-year to ₹1.2 lakh crore, supported by its point-of-sale network and the new cross-border merchant settlement product.
Chief Financial Officer Amit Agarwal told analysts the company expects full-year revenue growth of 20-24%, with margins improving as higher-margin software subscription revenue becomes a larger share of the mix. The firm added 1.2 lakh new merchants in the quarter, taking the total to 4.8 million.
A series of broker upgrades followed the print. Motilal Oswal raised its price target to ₹210 from ₹185, citing the cross-border product as a new growth lever. Kotak Institutional Equities set a target of ₹200, noting that the shift toward subscription-style contracts would improve earnings predictability. Edelweiss said the risk-reward had turned favourable after the recent correction, with deal wins accelerating in the enterprise segment serving large retailers.
On the technical side, the stock broke above its 50-day moving average of ₹158 on Thursday, a level it has not traded consistently above since early June. The relative strength index sits at 58, leaving room for further upside before hitting overbought territory. Support is pegged at ₹155, the level where buyers stepped in during the previous session.
Pine Labs competes with Razorpay, PayU, and BillDesk in India's digital payments market, which the RBI expects to double to $500 trillion in transaction value by FY30. The company processed over $50 billion in total payments in the June quarter across India, Southeast Asia, and the Middle East.
The board has not declared any dividend for the quarter. The annual general meeting is scheduled for September 28.
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