Buy Brainbees Solutions, target price Rs 605: JM Financial

JM Financial has a buy call on Brainbees Solutions with a target price of Rs 605. The current market price of Brainbees Solutions is Rs 410.4. The time period given by the analyst is a year when Brainbees Solutions price can reach defined target. .

Investment Rationale

Indian equities have seen a tough start to 2025, suggesting the need for portfolio allocation towards low-beta stocks with strong valuation comfort. FirstCry, coincidentally, also saw its pre-IPO lock-in expire during this period resulting in potential buyers holding off while potential sellers liquidated position before the event. With over a week since lock-in expired on Feb 10th, 2025, we note that neither have the volumes spiked nor have we seen any block deals, denoting pre-IPO investors? willingness to hold on to their positions until better value is on offer.

JM Financial's calculations suggest that CMP is implying c.24x FY27E Pre-Ind AS Adj. EBITDA for India multi-channel segment, considerably cheaper to other consumption related internet companies as well as lower growth, traditional retailers. The brokerage reiterates a BUY with Mar?26 target price of Rs 605 (54%+ upside), factoring lower multiple for International business segment.