Moneyview Shares Rise 4% After Bank of America Starts Coverage With Neutral Rating

Market Movement

Moneyview shares rose about 4% on Wednesday after Bank of America initiated coverage on the digital lending platform with a Neutral rating. The brokerage set a price target of ₹65 per share, pointing to an upside of roughly 18% from the stock's reference price of ₹54.95. Moneyview shares have gained about 58% from their IPO price of ₹34, outperforming the Nifty's 9.5% rise over the same period. The stock opened at ₹52.29 on the BSE, hitting an intraday high of ₹53.70 and a low of ₹51.55. Technical analysts note the stock listed on October 1 at ₹55 and previously touched a post-listing high of ₹65.50, with immediate support expected around the ₹45.80 level.

Business Model

Bank of America describes Moneyview as one of India's largest digital-only lending platforms, serving young, salaried borrowers in smaller cities. The company uses a hybrid model where about 75% of business runs through its platform via partner lenders, earning fees and sharing a capped default risk. The remaining 25% runs through its own NBFC, earning interest while taking full credit risk. BofA projects profit after tax to grow at a 62% compound annual growth rate between FY26 and FY29, with return on equity improving from 19% to 28%.

Context

Digital lending in India has shifted toward a stricter regulatory environment, forcing platforms to focus on risk management and diverse funding sources. Analysts evaluate such fintech firms by looking at their customer acquisition costs, loan book quality, and reliance on partner lenders for capital.