Kissht Parent OnEMI Tech Surges 11% in Strong D-Street Debut: Time to Buy, Sell, or Hold?

OnEMI Technology Solutions, the parent of Kissht, experienced a significant surge in share price on Friday, with an 11% rise from its listing price, reaching an intraday high of ₹212.2 on the Bombay Stock Exchange (BSE). The stock debuted at ₹191, demonstrating strong initial performance and a notable premium over the IPO price of ₹171. The company’s recent ₹926 crore IPO, which was open for subscription from April 30 to May 5, showcased robust investor interest, being oversubscribed 9.96 times overall by its conclusion, with demand particularly noteworthy among institutional investors who subscribed 25.97 times in the Qualified Institutional Buyers (QIB) segment.

Analysts recommend a cautious approach for potential investors, noting the volatility that often accompanies initial share gains. Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, suggested maintaining a stop loss at ₹178 to mitigate downside risks. In contrast, Geojit Financial Services lauded OnEMI’s diversified multi-channel customer acquisition strategy, which has fostered growth across multiple segments. The brokerage also emphasized the company’s commitment to asset quality through rigorous risk management practices and highlighted the financial flexibility afforded by its diverse funding sources, supporting future growth avenues.

Financial performance metrics from OnEMI Technology Solutions reveal a promising trajectory, with significant growth in Net Interest Income (NII), Pre-Provisioning Operating Profit (PPOP), and Profit After Tax (PAT) showing compound annual growth rates (CAGR) of 15.8%, 29.6%, and 140.9%, respectively, between FY23-FY25. Currently, the company exhibits a healthy asset quality with Gross Non-Performing Assets (GNPA) at 2.9% and Net Non-Performing Assets (NNPA) at just 0.4%. Despite 94% of its loan book being unsecured, Anand Rathi has expressed confidence in OnEMI’s scalable digital lending model and significant user base of 5.3 crore customers, recommending a long-term ‘Subscribe’ rating for the stock given its potential in India’s evolving credit market.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)