MobiKwik shares hit 52-week low: Here we decode why
What's the story
Stocks of One MobiKwik Systems, the parent company of digital payments provider MobiKwik, plunged by nearly 15% today.
The decline was triggered as the three-month lock-in period came to an end, making 46 lakh shares or about 6% of the company's total outstanding stock available for trading.
The stock hit a fresh 52-week low at ₹231.05 per share during intraday trade today.
Stock trajectory
MobiKwik's stock performance since listing
MobiKwik's shares debuted at a nearly 60% premium on December 18, 2024, with NSE and BSE prices at ₹440 and ₹442.25, respectively.
However, after hitting an all-time high of ₹698.30 on December 26, the stock has plummeted nearly 70%, trading below its IPO price of ₹269/share.
The decline has raised concerns among investors regarding the company's future prospects.
Market analysis
Technical indicators suggest continued downward pressure
In the past three months, MobiKwik's stock has declined by 11%.
Technical indicators suggest continued downside pressure, with the share trading below all five major simple moving averages (SMAs), including the 50-day SMA.
The company's 14-day Relative Strength Index (RSI) stands at 25.2, indicating oversold conditions and further weakness in its share price.
Financial performance
MobiKwik reports net loss in Q3 FY25
For the third quarter ending December 2024, One MobiKwik Systems posted a consolidated net loss of ₹55.28 crore, as opposed to a profit of ₹5.27 crore in the same period a year earlier.
However, revenue for the quarter grew by 17.7% to ₹269.47 crore from ₹228.93 crore.
This comes in contrast to the company's second-quarter performance where it reported a smaller net loss of ₹3.59 crore and its total income increased by 42% year-on-year to ₹293.66 crore in Q2 FY25.