4. Joint Stock Company Kaspi.kz (NASDAQ:KSPI)
Average Analyst Price Target Upside: 46.76%
Number of Hedge Fund Holders: 25
Joint Stock Company Kaspi.kz (NASDAQ:KSPI) is making significant strides in the financial technology and e-commerce landscape of Kazakhstan. It has a strong suite of services, including payments, marketplace solutions, and fintech offerings.
The company’s comprehensive super app caters to both consumers and merchants. The platform integrates cashless payments, personal finance management, e-grocery shopping, travel bookings, and access to various government services, all of which enhance user convenience and promote high levels of engagement.
As a result, a substantial portion of Kazakhstan’s population regularly interacts with the app, which shows its central role in daily financial activities. The company made headlines in January 2024 with a successful initial public offering (IPO) on the Nasdaq, raising over $1 billion and marking a historic moment as the first Kazakh company to debut on this exchange.
The IPO valued Kaspi.kz (NASDAQ:KSPI) at approximately $17.5 billion, further solidifying its status. It ranks 4th on our list of the best long term tech stocks to invest in now.
The continuous innovation within the app, including the launch of Kaspi Travel and Kaspi Classifieds, alongside established services such as buy now, pay later and person-to-person money transfers, demonstrates the company’s commitment to meeting diverse consumer needs.
Financially, it has shown remarkable growth. In the second quarter, net income increased by 25% compared to the previous year, while revenue for the first half of 2024 surged by 38%, reaching KZT1.2 trillion (1 KZT = US$0.0021 as of September 26).
The payments and marketplace segments were crucial to this success, contributing 68% of net income. A focus on maximizing transaction intensity led to impressive increases in transaction volumes, with a 46% rise in the second quarter and a 44% increase for the first half of 2024. The growth of Kaspi Pay transactions and the rapid adoption of B2B payments, along with the sustained popularity of bill payments, played important roles in these achievements.
User engagement metrics further highlighted the app’s success, with an average of 72 transactions per active consumer per month, positioning the Kaspi.kz’s (NASDAQ:KSPI) Super App as one of the most engaged major mobile applications globally, as per the company. Its competitive edge is significantly supported by this large and active customer base.
Additionally, Kaspi’s e-Grocery service is expanding rapidly, having increased its gross merchandise volume by 99% year-over-year and reaching around 639,000 active consumers during the quarter. The recent expansion into Shymkent, Kazakhstan’s third-largest city, indicates strong growth potential in this sector.
As of the first half of 2024, the company boasts a payments platform with 721,000 merchants and a marketplace platform serving 7.6 million consumers. Moreover, as per 9 analysts, the stock has a consensus Buy rating. The average price target of $152.80 represents an upside of 46.76% to its price on September 26.
With its impressive growth trajectory, continuous innovations, and extensive user engagement, the company is well-positioned for continued success in the dynamic fintech landscape of Kazakhstan.
