Bulk Deal Alert! Shankar Sharma Buys 148,800 Shares of this Fintech Company

Every day, the stock exchanges share the bulk deals and block deals that took place during the trading session.

These filings can be goldmines, providing unique insights into recent decisions made by some of the best money managers.

Today, we look at one such personality on the Dalal Street and his latest stock pick from the fintech space.

Who is Shankar Sharma?

Shankar Sharma is one of India's well known investing gurus.

People look forward to his interviews as they are full of colourful metaphors, witty one-liners, and smart observations.

According to data provided from the exchanges, Sharma publicly holds 2 stocks with a net worth of over Rs 493 million (m).

• Brightcom group - 2,29,25,000 shares
• Droneacharya Aerial Innovations - 457,000 shares

Which Stock Did Shankar Sharma Buy and Why?

The latest entrant in Shankar Sharma's portfolio is fintech company MOS Utility.

Data from the exchanges showed that Shankar Sharma bought 148,800 shares of MOS Utility via a bulk deal on 01 Mar 2024.

MOS Utility is listed only on the NSE SME platform.

As you would expect, shares of the company surged 10% yesterday and another 5% today.

While we don't know why exactly Shankar Sharma bought stake in the company, there are some reasons we could guess...

MOS Utility has posted consistent growth in its quarterly earnings for the past couple of quarters.

As digital payments have grown sharply in recent months, the company has received a strong boost... daily, more users are switching to digital modes.

Financial Snapshot of MOS Utility

Rs m, consolidated	FY20	FY21	FY22	FY23
Net Sales	882	677	773	1,061
Growth (%)	-	-23%	14%	37%
Operating Profit	38	18	53	109
OPM (%)	4%	3%	7%	10%
Net Profit	6	8	33	57
Net Margin (%)	1%	1%	4%	5%
ROE (%)	9.6	13.1	41.1	32
ROCE (%)	19.4	7.4	22.2	31.1
Dividend (Rs)	0	0	0	0
Debt to Equity (x)	0.9	1.2	1.4	0.3

Data Source: Ace Equity

The other reason why the company is in a good spot is because investors are extremely bullish on the stocks getting listed on SME platform. These small companies are churning out multibagger returns within days.

Apart from that Shankar Sharma's would have noticed the latest acquisition made by MOS Utility.

It acquired 51% stake in Indicore Infocomm, which is in the business of telecom software development, among other things.

Operating in the fintech space, MOS Utility enjoys strong sectoral tailwinds. Everyone and their uncle wants to get into the fintech space. Even well-established banks and financial institutions in India have realised the importance of technology innovation.

As the fintech space evolves, MOS Utility looks prepared and it's taking the acquisition route by acquiring smaller companies.

How MOS Utility share price has performed since listing

The stock was listed last year in April at Rs 94 per share.

It currently trades at Rs 159 per share, which translates into 70% gains since listing.

MOS Utility has a 52-week high of Rs 159 touched today and a 52-week low of Rs 79 touched on 7 August 2023.

Reacting to the news of Shankar Sharma buying stake, shares have shot up in the past two sessions.

Here's a table comparing MOS Utility with its peers -

Comparative Analysis

Company	MOS Utility	Infibeam Avenues	PB Fintech	Paytm	Zaggle
ROE (%)	32	4.9	-1.1	-16.4	148.8
ROCE (%)	31.1	6.4	-1.1	-14.1	37.3
Latest EPS (Rs)	2.3	0.5	1.8	-17.5	1.9
TTM PE (x)	66.4	70.9	627.5	-	190.7
TTM Price to book (x)	5.1	3.2	6.6	2.2	7.9
Dividend yield (%)	0	0.1	0	0	0
Industry PE	259.9
Industry PB	5.7

Data Source: Ace Equity

About MOS Utility

Incorporated in 2009, MOS Utility is a fintech company which offers a unified open API and wallet platform.

The company provides a platform to agents to facilitate booking of instant digital transfer of money to a bank account, etc.

As of September 2023, company promoters held 64.67% stake in MOS UTILITY, with no shares having been pledged.

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...