LIC Holds 4.41 Per Cent Stake: Only Buyers In This Penny Stock Under Rs 10; Hit Upper Circuit Today
The shares of the company have a PE of 180x, an ROE of 3 per cent and an ROCE of 7 per cent.
On Tuesday, shares of Vakrangee Ltd hit a 5 per cent upper circuit to an intraday high of Rs 9.89 per share from its previous closing of Rs 9.42 per share with over 6 lakh shares changing hands on BSE. The stock is up by 5.8 per cent from its 52-week low of Rs 5.35 per share.
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 Q3FY25, 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 9MFY25, 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.
Recently, Vakrangee Limited's aggressive strategy to deploy 3,000 new ATMs in FY26, with a focus on UPI-based transactions, aims to significantly enhance financial inclusion in underserved rural areas. This initiative builds upon their existing network of 6,050 White Label ATMs, predominantly located in Tier 4 and 6 regions, and addresses the substantial demand indicated by over 465 new ATM installation applications. The integration of paperless transactions and Divyang-friendly features underscores the company's commitment to social responsibility, while the acquisition of Vortex Engineering, a low-power ATM innovator, strengthens their technological capabilities and supports the "Make in India" initiative.
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The expansion is expected to positively impact millions of customers in smaller cities and towns, facilitated by Vakrangee's strategic collaborations with banking institutions and regulatory bodies. Leveraging their extensive network of 22,395 Vakrangee Kendra Outlets, with a strong rural presence, the company is positioned to deliver a broad spectrum of financial and e-commerce services, thereby contributing to the economic empowerment of rural India. The backward integration and cost synergies resulting from the Vortex Engineering acquisition will further support the efficient and scalable deployment of the new ATM network.
The company has a market cap of over Rs 1,000 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 180x, 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.