JM Financial has initiated coverage of OnEMI Technology Solutions with a Buy rating and a target price of Rs 385, implying an upside of around 28% from the brokerage's reference price of Rs 301.

In assigning its valuation, JM Financial values the stock at 2x its estimated FY28 book value. The brokerage's positive stance is grounded in the company's digital lending platform, Kissht, and its focus on mass-market borrowers.

OnEMI Technology Solutions operates Kissht, a digital lending platform that serves a broad base of mass-market credit customers in India. Kissht offers instant credit through personal loans and purchase financing, positioning the company within India's digital lending sector, which has expanded as smartphone penetration and online credit uptake have grown among consumers historically underserved by traditional bank credit. The sector is also regulated by the Reserve Bank of India's digital lending guidelines, which frame how non-banking lending platforms operate.

The company is listed on Indian stock exchanges, and JM Financial's initiation marks a new analyst coverage of the stock. Analyst initiations often draw investor attention to newly listed or less-covered companies, as they establish a baseline valuation framework for the name.

The rating and target price reflect the brokerage's published research view; as with all analyst recommendations, they represent the opinion of the issuing firm rather than a guarantee of future performance.

Source: Economic Times Markets