Penny Stock Under Rs 15 In Focus As Company Plans To Expand Its ATM Network By Deploying 3,000 ATM Machines In FY2025-26

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 gained 1.50 per cent to an intraday high of Rs 11.69 per share from its previous closing of Rs 11.52 per share with over 20 lakh shares changing hands on BSE.

Vakrangee Limited has announced ambitious plans to significantly expand its ATM network, aiming to deploy 3,000 new ATM machines in the fiscal year 2025-26. This initiative is designed to bolster financial inclusion, particularly in underserved and unserved rural areas, where access to traditional banking services is often limited. A key feature of this expansion will be the introduction of UPI-based ATMs, facilitating seamless and cardless cash withdrawals, thus enhancing convenience for customers. The company has already witnessed strong demand, evidenced by over 465 new applications for ATM installations.

Currently operating 6,050 White Label ATMs, with a substantial 76% located in Tier 4 and 6 locations, Vakrangee is focused on bridging the financial gap in these regions. The company's commitment to social responsibility is evident in its focus on paperless transactions and Divyang-friendly features, ensuring inclusivity and environmental sustainability. Further strengthening its technological capabilities, Vakrangee has acquired Vortex Engineering Private Limited, a pioneer in low-power ATMs incubated by IIT-Madras, which holds nine patents. This acquisition supports the "Make in India – Atma Nirbhar Bharat" initiative and enables backward integration and cost synergies.

The planned expansion is projected to positively impact millions of customers, particularly those residing in smaller cities and towns. Vakrangee's strategic collaborations with banking institutions and regulatory bodies will be crucial in ensuring the smooth implementation of the new ATM deployments and adherence to stringent financial security standards. With its extensive network of 22,395 Vakrangee Kendra Outlets, 81% of which are in Tier 4 and 6 locations, Vakrangee is poised to deliver a wide array of financial and e-commerce services, further contributing to the economic empowerment of rural India.

About the Company

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.

The company has a market cap of over Rs 1,200 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.