Moneyview shares rose around 4% on Wednesday after Bank of America (BofA) initiated coverage on the digital lending fintech platform with a Neutral rating and a ₹65 price target, implying roughly 18% upside from its reference price of ₹54.95. According to reports from LiveMint, the stock has gained around 58% from its IPO price of ₹34, significantly outperforming the Nifty, which has risen about 9.5% over the same period. Moneyview shares opened at ₹52.29 on the BSE, touched an intraday high of ₹53.70, and an intraday low of ₹51.55 per share. Technical analysts noted that the stock listed on October 1 at ₹55 against its IPO price of ₹34, and touched a post-listing high of ₹65.50, with the ₹45.80 level expected to act as immediate support on the downside.
BofA described Moneyview as one of India's largest digital-only lending platforms, catering primarily to young, salaried borrowers in Tier-2 and smaller cities. As reported by LiveMint, the brokerage believes the company operates in a large addressable market and has an opportunity to increase customer lifetime value through a range of lending products that help borrowers build their credit histories. However, BofA believes the stock's 58% post-IPO rally has balanced its risk-reward equation, flagging the company's dependence on a single major product, reliance on lending partners and regulatory arrangements, and the relatively short track record of its NBFC lending book. The brokerage has valued Moneyview using a sum-of-the-parts approach, with the core lending platform valued at 1.5 times FY28 estimated price-to-sales and the NBFC business at 1.15 times FY28 estimated price-to-book.
According to LiveMint reports, Moneyview follows a hybrid on-book and off-book lending model, with around 75% of its business conducted through its lending platform earning origination and servicing fees from partner lenders. The remaining 25% is carried out through its own NBFC, allowing the company to earn interest income while taking on full credit risk. BofA expects Moneyview to deliver a 62% compound annual growth rate in profit after tax (PAT) between FY26 and FY29, with return on equity projected to improve from 19% in FY26 to 28% by FY29. At the reference price of ₹54.95, Moneyview trades at around 2 times its estimated FY28 price-to-book value and 8.4 times its estimated FY28 price-to-earnings multiple, compared to its closest listed peer Kissht which trades at 1.6 times price-to-book and 9 times price-to-earnings.
As reported by LiveMint, BofA believes India's digital lending industry has moved beyond its acquisition-led growth phase and is entering a more regulated environment, where balance-sheet strength and risk management are becoming increasingly important. The brokerage sees several potential levers for improving Moneyview's profitability, including lower cost of capital, reduced customer acquisition costs as repeat users increase, and operating leverage as the business scales. However, it cautioned that the largely unsecured lending book leaves the company exposed to credit cycle deterioration and regulatory changes affecting partner arrangements. Other risks include lending partners reducing their exposure or tightening lending capacity, as well as regulatory changes affecting default loss guarantee (DLG) structures. On the upside, a benign credit environment, stronger collections and lower funding costs could support performance, while stress in unsecured lending or a pullback by lending partners could weigh on growth and profitability.
