Is this penny stock below Rs 21 ready for a Suzlon-like move?

The company's strong guidance for FY24, projecting revenue in the range of Rs 3,000 to 3,300 crore, represents a year-on-year growth of 53 to 68 per cent.

In recent times, Suzlon Energy has emerged as a stellar performer, delivering an extraordinary return of over 280 per cent in just the past year. This meteoric rise has transformed it into a multibagger, rekindling memories of its status as the darling stock of D-Street. Suzlon Energy's remarkable journey from a single-digit stock to nearly touching the Rs 30-mark and scaling to near its 10-year high is nothing short of impressive. The question on everyone's mind now is whether another stock can replicate this success story.

Before we delve into the details, let's unveil the name of this potential star in the making: Infibeam Avenues Ltd. This company is a frontrunner in India's financial technology sector, offering a comprehensive suite of digital infrastructure services, including omnichannel digital payment solutions, enterprise software platforms, and lending solutions to a diverse clientele of merchants, institutions, enterprises, and corporates. Infibeam's reach extends beyond India to the GCC (UAE, Saudi Arabia, Oman) and the USA, with further expansion plans in Australia.

Infibeam's Digital Payment portfolio covers payment acquiring (both online and offline through a SoftPoS), payment issuance, remittances, and relevant infrastructure. The company processes online transactions for merchants across various industries in India and abroad. Additionally, it offers an eCommerce marketplace infrastructure through a Software-as-a-Service (SaaS) model, equipped with 3rd-party capability, under the Software Platforms business. Value-added web-based services are also part of the offerings to merchants in the Payments and Platforms segments. Notably, the company has launched lending solutions and intends to provide working capital loans and bill/invoice discounting through an AI/ML-based lending platform.

In Q1 FY24, Infibeam reported its highest-ever quarterly gross revenue and net revenue figures. Furthermore, the company posted robust growth in operating profits, with an impressive daily merchant addition rate of 9,500. Cash and cash equivalents reached a record high of Rs 400 crore. The company's strong guidance for FY24, projecting revenue in the range of Rs 3,000 to 3,300 crore, represents a year-on-year growth of 53 to 68 per cent. The net revenue guidance is equally robust, expecting growth in the mid-twenties.

Infibeam's ambitious future plans are as follows:

1. Commercially launch in KSA by Q2 end, upon receiving data localization compliance certification from the regulator.

2. Introduce CCAvenue TapPay in UAE and other GCC markets.

3. Expand into other GCC markets within the next 12-15 months.

4. Commence payments operations in Australia by the end of FY24.

5. Target to enter South East Asia in FY25.

6. Explore opportunities in other international markets in FY25 and initiate launches.

7. Maintain focus on low-cost, stable, scalable, and sustainable business models for merchants and banks.

8. Set a target of 1 million downloads by FY24.

The stock of Infibeam Avenues has surged by an impressive 36.36 per cent in the past year. On the weekly chart, it has exhibited a resolute breakout over the past year, while the Relative Strength Index (RSI) on both daily and weekly timeframes stands above the 60-level, signaling positive momentum and potential for further gains.

It's important to note that this article is for informational purposes only and should not be considered as investment advice. As with any investment, thorough research and due diligence are essential before making any financial decisions.