Stock of the day: is Findi’s growth story worth the risk? $3.9 million loss in focus

(AI video summary)

This video was created on 29 November for IG audiences by ausbiz.

ASX code: FND

Findi's $3.9 million loss

Findi, an emerging ATM operator focusing on the Indian market, has reaffirmed its full-year guidance despite reporting a $3.9 million loss in the first half of FY25. The company highlighted its ongoing growth initiatives and expansion efforts in rural India, where significant opportunities remain untapped.

Market reaction was swift, with the stock declining over 18% in morning trade following the announcement. However, it is worth noting that the stock had risen between 700% and 800% earlier in the year, reflecting investor optimism about its long-term growth potential.

Massive market potential

Findi's total addressable market is substantial, with over 385 million individuals in rural India relying primarily on cash transactions. The transition to electronic financial systems is still in its infancy in these areas, providing the fintech company with a significant opportunity to bridge the gap.

However, this rapid growth has created structural complexities that the company must address to build investor confidence and sustain long-term profitability.

Investment outlook

While the fintech company’s story is compelling, analysts caution against immediate investment, suggesting that the stock is overheated. Both Adam and JB recommended selling the stock, at least in the short term, until the company provides greater clarity on its operations and achieves more consistent performance.

Investors intrigued by the company’s potential may prefer to wait for further updates and evidence of sustainable growth before reconsidering their positions.