UBS Stays Neutral on One97 Communications Despite Raising Target Price to ₹1,250
UBS Highlights:
- Rating: Neutral
- Target Price Raised To: ₹1,250 (from ₹1,100)
- Reason: Regulatory hurdles largely behind
- Key Catalysts: Revenue scale-up; improved payment-business margins (expected net margin rising to ~4.4 bps by FY27E)
- Costs: Expected to increase—~18% in FY27E and ~13% in FY28E
- Valuation: Trades at 7.1× 1-year forward EV/Sales and ~62× P/FY27E EPS—“in line with peers,” limiting upside
Analyst Ratings Comparison
| Brokerage | Rating | Target Price | Key Notes |
|---|---|---|---|
| UBS | Neutral | ₹1,250 | Regulatory clarity, margin upside, but costly expansion & rich valuation |
| Bernstein | Outperform | ₹1,100 | Sees margin potential after merchant onboarding clarity |
| Citi | Buy (reiterated) | ₹1,215 | RBI granted in-principle aggregator approval; sentiment improving |
| Consensus (17 analysts) | Buy | ~₹1,127 | Average across high/low of ₹780–₹1,400 |
Takeaway: While UBS has raised its ₹1,250 target, it remains cautious due to thick competition in valuation multiples and rising costs. Other brokerages like Bernstein and Citi are more bullish, suggesting room for upside on improving margins and regulatory sentiment.
Source: UBS analysis published August 29, 2025, and broker updates from Bernstein and Citi; consensus data from Investing.com and MarketScreener.
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