Moneyview shares are up 58% from IPO price, jump 4% today after BofA coverage - what it said, check price target

Moneyview shares rose around 4% on Wednesday after Bank of America (BofA) initiated coverage on the digital lending fintech platform with a Neutral rating, flagging limited upside following a sharp rally since its stock market debut.

BofA Securities has set a price objective of ₹65 per share, compared with the stock's reference price of ₹54.95 in its initiation note, implying an upside potential of around 18%. The brokerage said Moneyview has several growth drivers in placebut believes its valuation already reflects much of the optimism following the stock's strong post-listing performance.

Moneyview shares have gained around 58% from their IPO price of ₹34, significantly outperforming the Nifty, which has risen about 9.5% over the same period, according to BofA.

Moneyview share price today opened at ₹52.29 apiece on the BSE, the stock touched an intraday high of ₹53.70 apiece, and an intraday low of ₹51.55 per share.

Technical analysts said Moneyview listed on 1 October at ₹55, against its IPO price of ₹34, and touched a post-listing high of ₹65.50. The stock has since retraced, although buying interest has emerged at lower levels. Going ahead, it could move towards its previous high of ₹65.50. On the downside, the ₹45.80 level is expected to act as immediate support.

BofA described Moneyview as one of India's largest digital-only lending platforms, catering primarily to young, salaried borrowers in Tier-2 and smaller cities. The brokerage believes the company operates in a large addressable market and has an opportunity to increase customer lifetime value through a range of lending products that help borrowers build their credit histories.

Its hybrid lending model, which combines loans sourced through partner lenders with lending through its own non-banking financial company (NBFC), also allows it to expand without committing significant capital to every loan, BofA noted.

However, the brokerage believes the risk-reward equation has become more balanced after the stock's sharp rally. It flagged the company's dependence on a single major product, its reliance on lending partners and regulatory arrangements, and the relatively short track record of its NBFC lending book.

Moneyview follows a hybrid on-book and off-book lending model. Around 75% of its business is conducted through its lending platform, where it earns origination and servicing fees from partner lenders. It also assumes a limited and capped share of credit losses through default loss guarantee (DLG) arrangements.

The remaining 25% of lending is carried out through its own NBFC, allowing the company to earn interest income while taking on the full credit risk associated with those loans.

BofA said this structure offers a balance between growth and capital efficiency. However, the brokerage cautioned that the platform's revenue remains concentrated in one product and depends on lending partners and the regulatory framework. It also highlighted the relatively unseasoned nature of the NBFC loan book.

BofA believes India's digital lending industry has moved beyond its earlier acquisition-led growth phase and is entering a more regulated environment, where balance-sheet strength and risk management are becoming increasingly important.

The sector has consolidated over the past four to five years, with players such as Moneyview, Kissht, KreditBee, Fibe and Navi emerging as prominent platforms.

According to the brokerage, the strongest digital lending businesses are likely to combine four key capabilities: low-cost proprietary customer acquisition, access to an NBFC or a durable regulated lending partner, underwriting and collections data from repeat borrowers, and diversified funding sources.

These funding channels include lending through their own books, co-lending arrangements, loan assignments and securitisation. The platforms largely cater to young borrowers outside India's major metropolitan centres.

BofA has valued Moneyview using a sum-of-the-parts approach, assigning a price objective of ₹65 per share.

The brokerage expects Moneyview to deliver a 62% compound annual growth rate in profit after tax (PAT) between FY26 and FY29, with return on equity (ROE) projected to improve from 19% in FY26 to 28% by FY29.

At the reference price of ₹54.95, Moneyview trades at around 2 times its estimated FY28 price-to-book value and 8.4 times its estimated FY28 price-to-earnings multiple, according to BofA. Its closest listed peer, Kissht, trades at 1.6 times price-to-book and 9 times price-to-earnings, although BofA does not cover the company.

The brokerage said Moneyview's premium valuation is supported by its larger scale and higher return on equity. However, it believes the current valuation leaves a more balanced risk-reward profile.

For the core lending platform, BofA has applied a valuation of 1.5 times FY28 estimated price-to-sales, below the average multiple for Indian fintech and consumer internet companies. It cited the platform's credit exposure, product concentration and dependence on lending partners and regulations as reasons for the conservative valuation.

The NBFC business has been valued at 1.15 times FY28 estimated price-to-book, based on a Gordon Growth Model. This valuation is at a discount to Indian lending peers, reflecting the business's smaller scale and relatively unseasoned loan book.

BofA sees several potential levers for improving Moneyview's profitability, including a lower cost of capital, reduced customer acquisition costs as repeat users increase, and operating leverage as the business scales.

The brokerage believes the company's focus on younger borrowers and customers in India's smaller cities positions it to benefit from the expansion of digital credit.

However, it cautioned that the largely unsecured lending book leaves the company exposed to a deterioration in the credit cycle. Other risks include lending partners reducing their exposure or tightening lending capacity, as well as regulatory changes affecting partner arrangements and DLG structures.

On the upside, a benign credit environment, stronger collections and lower funding costs could support performance. On the downside, stress in unsecured lending or a pullback by lending partners could weigh on growth and profitability.

BofA's view: Moneyview has attractive long-term growth opportunities and a capital-efficient business model, but after its sharp post-IPO rally, the brokerage believes the stock's risk-reward is more balanced. It has therefore initiated coverage with a Neutral rating and a price objective of ₹65.

Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.

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HomeMarketsMoneyview shares are up 58% from IPO price, jump 4% today after BofA coverage - what it said, check price target

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