Penny Stock Under Rs 20: IT Company Announces Strategic Tie-Up With Aditya Birla Health Insurance
The shares of the company have a PE of 300x, an ROE of 3 per cent and an ROCE of 7 per cent.
Vakrangee Limited has partnered with Aditya Birla Health Insurance Company Limited (ABHICL) to offer health insurance solutions through its extensive Vakrangee Kendra network. This collaboration aims to broaden access to comprehensive health insurance, particularly in underserved and remote areas, leveraging Vakrangee's reach in these regions. The partnership aligns with Vakrangee's commitment to democratizing essential services and ABHICL's "Health First" approach, which emphasizes wellness and preventive care.
ABHICL, established in 2016, provides a range of health insurance plans focused on promoting healthier lifestyles. Their offerings include innovative features like HealthReturns®, chronic care management and digital health assessments, empowering individuals to manage their well-being. With a network of over 12,000 hospitals and a presence in over 5,000 cities, ABHICL offers cashless healthcare services across India. This partnership reinforces ABHICL's dedication to expanding access to quality healthcare and building a customer-centric ecosystem.
Vakrangee Kendra outlets, offering various services including banking, insurance, and e-commerce, will now provide ABHICL's health insurance products. With 81% of these Kendras located in Tier-4 to 6 areas, the partnership will significantly improve access to insurance services in remote parts of India. This initiative reflects Vakrangee's ongoing efforts to expand its product and service offerings and its vision of becoming a trusted physical and online convenience store, embodying its brand philosophy of ‘AB Poori Duniya Pados Mein’.
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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 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 1,500 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.