CoinSwitch parent enters low-fee stock broking biz
PeepalCo, the parent of cryptocurrency investment platform CoinSwitch, has forayed into stock broking with the launch Lemonn, its application to simplifies discovery and decision making for new investors.
Lemonn is the latest product by PeepalCo, the house of fintech products founded by Ashish Singhal, Vimal Sagar Tiwari and Govind Soni. Lemonn will be housed as a separate business division with its own management and operational teams, led by Devam Sardana as the business head, said Ashish Singhal, cofounder and group CEO of PeepalCo group.
“Millions of Indians find stock markets complicated even today. Despite the postpandemic growth, only about 6 per cent of Indians invest in stock markets. We aim to bridge this gap, by making stock investing engaging, informative and effortless,” he said.
The platform will offer zero trading brokerage for the first three months and no fees for account opening. It will introduce a flat broking fee structure, subsequently.
“We are evolving our offerings, and it would be around the product market fit. We are open to multiple models on subscriptions, on flat fees, on annual fees, and a lot of that will evolve once we solve the right problem for the users,” Sardana said.
Lemonn currently supports equity investments, and will introduce mutual funds and investments in initial public offerings (IPOs) in the future.
UFO MOVIEZ (BUY)
Target: ₹214
CMP: ₹145.15
Since our initiating coverage on UFO Moviez India Ltd (UMIL) the stock had touched ₹174 (from initiation price of ₹112) and is currently 19 per cent up from initiation price. Despite the rally we believe that there is still significant upside potential that warrants a relook. We reinitiate with a BUY coverage for a price target of ₹214 (22x FY27E net earnings).
With Recent acquisition of TSR Films, the total number of screens has increased to 3,808 from 3,303 in Sept, 2023. Revenue is projected to increase from ₹396 crore in FY23 to ₹638.8 crore in FY27, indicating a 12.7 per cent CAGR growth.
Due to operating leverage, EBITDA is expected to rise significantly by 39.7 per cent CAGR to ₹121.8 crore. The net profit is expected to turn the corner in FY24 to reach ₹16 cr from a loss of ₹21 crore recorded in FY23. Post this, the PAT is expected to clock a 3 years CAGR of 32.2 per cent reaching ₹37.4 crore in FY27. EBITDA Margins and Net Profit Margins are expected to improve by
1,100 bps to 19.1 per cent and 190 bps (from FY24) to 5.9 per cent respectively by FY27. Key risks: Continued weakness in advertising and filmviewing footfalls; and termination of JV with Qube will have no material impact. businessline is not responsible for the recommendations sourced from third party brokerages. Reports may be sent to: