MobiKwik Stock Falls for 6th Straight Day, Hits Record Low
MobiKwik, one of India’s leading digital wallets, is facing a tumultuous time in the stock market. The company’s shares have been plummeting for six consecutive days, with the latest fall being a staggering 5.5%. This significant drop has pushed the stock to an all-time low, with the shares trading at ₹277.55 apiece during the early trading hours on the Bombay Stock Exchange (BSE) today.
The downward spiral began on November 12, when the company’s shares fell by 10.5% to ₹282.95. Since then, the stock has continued to decline, with no signs of recovery. The latest fall has seen the company’s market capitalization drop to ₹2,164.73 crore, a significant decline from its previous value.
At the time of writing, the stock was trading 5.4% lower at ₹277.75, compared to its previous close of ₹298.85. The trading volume was a significant 21.6 lakh shares, indicating that investors are keen to offload their holdings.
The reasons behind MobiKwik’s stock price crash are not entirely clear, but several factors could be contributing to the decline. One possible reason is the company’s recent financial performance, which has been lackluster. In its latest quarterly earnings report, MobiKwik reported a significant decline in its revenue and profits, which may have spooked investors.
Another reason could be the increasingly competitive landscape in the digital payments space. With the rise of new players such as PhonePe, Google Pay, and Amazon Pay, the market has become increasingly crowded, making it difficult for MobiKwik to stand out. The company’s struggles to expand its user base and increase its transaction volume may have led to a decline in investor confidence.
Additionally, there could be concerns about the company’s future growth prospects. With the Indian government’s demonetization drive and the subsequent introduction of the Goods and Services Tax (GST), the digital payments market has become more complex and challenging. MobiKwik’s ability to adapt to these changes and maintain its growth momentum may be a concern for investors.
The stock market is known for its volatility, and MobiKwik’s shares are no exception. However, the company’s recent performance has been disappointing, and investors are likely to be worried about the direction the company is heading.
MobiKwik was founded in 2009 by Bipin Preet Singh and Upasana Taku, and it has since become one of India’s leading digital wallets. The company has a strong user base of over 100 million users and processes over 1 million transactions every day. MobiKwik has also partnered with several leading e-commerce companies, including Flipkart, Paytm, and Amazon.
In conclusion, MobiKwik’s stock price crash is a significant development in the Indian financial markets. The company’s recent financial performance, competitive landscape, and future growth prospects are all potential reasons for the decline. While the stock market is inherently volatile, MobiKwik’s shares are likely to remain under pressure until the company can demonstrate a clear turnaround strategy.
Source:
https://inc42.com/buzz/mobikwik-shares-extend-losses-for-6th-day-crash-to-fresh-all-time-low/
