India's Pine Labs rises after Morgan Stanley and Jefferies start coverage

Shares of payments solution co Pine Labs PINL.NS rise 1.84% to 236.80 rupees

Morgan Stanley and Jefferies initiate coverage with "Equal Weight" and "Buy" and TP of 260 rupees and 300 rupees, respectively

MS expects revenue to grow at ~19% CAGR during FY25–FY28 and Jefferies expects 23% CAGR revenue over FY25-28

Both say growth driven by affordability services and issuing business

MS says transition to an asset-light model and higher-margin segments should boost EBIT margin from 3% in FY25 to 20% by FY28; incremental margins could exceed 40–50%

Jefferies says factoring the intensity of working

capital, including instant cashback to continue stay high and allow Pine Labs to generate business

PINL down 6% since Nov 14 listing