LIC Holds 4.41 Per Cent Stake & FIIs Increase Stake: Multibagger Penny Stock Under Rs 20 In Focus After Delivering Strong Performance in Q3FY25 & 9MFY25
The company has a market cap of over Rs 2,000 crore and as of December 2024, the Life Insurance Corporation of India (LIC) owns a 4.41 per cent stake in the company.
On Thursday, shares of Vakrangee Ltd gained 0.7 per cent to Rs 18.70 per share from its previous closing of Rs 19.58 per share with over 60 lakh shares changing hands on BSE. The shares of the company saw a spurt in volume by more than 7.5 times on BSE.
Vakrangee Ltd, established in 1990, is a technology-focused company that aims to bridge the digital divide. It operates a network of "Next-Gen Vakrangee Kendras," franchise-based, one-stop convenience stores offering a range of services to rural, semi-urban, and urban India. The company primarily focuses on BFSI services, including banking, insurance, and ATM facilities. Additionally, Vakrangee provides e-commerce and logistics solutions, such as assisted online shopping, healthcare, travel services, telecom and bill payments, and courier services, effectively catering to the diverse needs of its customers in underserved areas.
In Q3 FY2024-25, the company demonstrated robust financial performance with total income reaching Rs 6,863.0 lakh, a 31.7 per cent increase YoY, and profit before tax and exceptional items soaring to Rs 161.3 lakh, a 72 per cent increase YoY. For the 9M period of FY2024-25, the company maintained its strong growth trajectory with total income at Rs 19,429.6 lakh, up 31.7 per cent YoY, and profit before tax and exceptional items reaching Rs 590.6 lakh, a remarkable 110.1 per cent increase YoY.
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Vakrangee Limited, along with its debt-free subsidiary Vortex Engineering, is poised for significant growth, fuelled by a strong balance sheet and strategic initiatives. The company has launched its own private and white-label apparel lines, with plans for pan-India expansion and diversification into other consumer categories. A network of Master Franchisees in 535 districts across India will support aggressive Kendra network expansion, targeting 100 per cent district coverage by March 2026. Vakrangee's "VISION 2030" aims to reach over 3 lakh outlets and 15,000+ ATMs, targeting USD 1 billion in revenue and USD 150 billion in gross transaction value. Strategic growth initiatives include the completed acquisition of Vortex Engineering, providing backward integration and unlocking synergies. Furthermore, the company has raised significant capital through preferential allotment of convertible warrants to promoter and non-promoter categories, totalling up to Rs 162 crore and an additional approval for up to Rs 980 crore, further strengthening its financial position for expansion.
The company has a market cap of over Rs 2,000 crore and as of December 2024, the Life Insurance Corporation of India (LIC) owns a 4.41 per cent stake in the company. In December 2024, FIIs increased their stake to 2.82 per cent compared to 2.74 per cent in September 2024. The shares of the company have a PE of 300x, an ROE of 3 per cent and an ROCE of 7 per cent. Investors should keep an eye on this Small-Cap IT stock.
Disclaimer: The article is for informational purposes only and not investment advice.