Newly listed stock has 30% upside potential! JM Financial issues buy call; Check target price and key triggers
A Ksheerasagar
E-commerce enablement platform Shiprocket, which debuted on Indian stock exchanges in August, has received a bullish outlook from domestic brokerage firm JM Financial.
In its latest report, the brokerage highlighted the company's diversified approach to capitalizing on India's expanding commerce enablement opportunity, its growing merchant base, and opportunities in its emerging businesses. JM Financial expects these factors to push revenue to ₹43.4 billion by FY29E.
JM Financial said Shiprocket’s core shipping business serves as an entry point for merchant relationships, allowing the company to benefit from rising online sales and higher transaction volumes without owning logistics infrastructure.
It expects the core business to grow at a compound annual growth rate (CAGR) of around 18% between FY26 and FY29, with its adjusted EBITDA margin expanding from 12.6% to around 15.3%.
The brokerage also highlighted the growth potential of Shiprocket’s emerging businesses, which include fulfillment, omnichannel solutions, checkout, marketing, and cross-border services. It estimates that revenue from these businesses will rise from ₹5.4 billion in FY26 to ₹18.8 billion by FY29, increasing their contribution to total revenue from around 27% to 43%.
However, it expects the segment to remain loss-making through FY28 before turning profitable in FY29, with adjusted EBITDA of around ₹0.7 billion.
Shiprocket operates across two segments—Core Business and Emerging Business. Its core business includes domestic shipping and shipping applications, while its emerging businesses comprise cargo and fulfillment, cross-border shipping, advertising and marketing solutions, capital solutions, and hyperlocal deliveries.
In terms of financials, the brokerage forecasted consolidated revenue to increase from ₹20.2 billion in FY26 to ₹43.4 billion by FY29E, while adjusted EBITDA margin expands from 0.9% to 10.4% as Core continues to generate operating leverage and emerging moves from a significant loss to profitability.
Thus, it initiates coverage on the stock with a target price of a 'buy' rating and a September 27E TP of ₹165, valuing the company at 32x Sep '28E adjusted EBITDA. The target price indicates an upside potential of 30% from the stock's recent closing price of ₹127.
The shares made a strong debut on Dalal Street in August, listing at ₹131, a 35% premium to the issue price of ₹97. The rally extended through the session, with the stock closing its first trading day at ₹143.40.
However, broader market volatility dragged the stock lower in the following weeks, taking it to an all-time low of ₹116 before it staged a modest recovery. At current levels, the stock is trading around 30% above its issue price.
A Ksheerasagar
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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