Small-cap stock below Rs 80: Company has won three major orders from public sector banks, with the impact expected to be seen in FY25, and partnered with Patanjali Ayurved

Rs 60,000 crore for the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Yojana and Rs 1,441 crore for the promotion of RuPay debit cards and low-value BHIM-UPI transactions (person-to-merchant).

AGS Transact Technologies is one of the largest integrated omni-channel payment solutions providers in India, offering digital and cash-based solutions to banks and corporate clients. The company provides customized products and services, including ATM and CRM outsourcing, cash management, and digital payment solutions such as merchant solutions, transaction processing services, and mobile wallets. It operates in three broad business segments: Payment Solutions, Banking Automation Solutions, and Other Automation Solutions.

AGS Transact Technologies serves diverse industries including banking, retail, petroleum, toll and transit, cash management, and fintech in India and select countries in Asia. As of December 31, 2023, the company has deployed 248,126 payment terminals and was one of the largest deployers of PoS terminals at petroleum retail outlets in India, with 45,525 terminals rolled out at various petroleum retail outlets.

In a recent development, AGS Transact Technologies' digital payments brand Ongo has partnered with Patanjali Ayurved Limited, India’s leading conglomerate, to launch open-loop Co-branded Prepaid Cards. These prepaid cards are accepted on any device on the Rupay network pan India. Users of the Patanjali-Ongo cobranded card will earn rewards on purchasing Patanjali products and can use the cards for various other payments including shopping, dining, fuelling, and ecommerce. Additionally, the card comes with the NCMC feature, allowing seamless use of transit services such as NCMC-enabled Metro, buses, tolls, and parking across the country. Enrollment for this can be done by customers via registration on the Ongo app available on Playstore and App store or by visiting the nearest Patanjali stores. Ongo holds a PPI license from the RBI, enabling it to issue open-loop prepaid instruments like prepaid cards and wallets.

The company has won three major orders from leading Public Sector Banks, which will help expand its scale of operations and further solidify its position in the industry. The execution of these orders will begin in Q4FY24, with its impact expected to commence during FY25.

The open-loop contactless fuel payment solution on the Ongo app, currently in the pilot phase, is expected to strengthen the company's foothold in the OMC sector, which has a market size of approximately Rs 8 lakh crores.

Furthermore, in the recent interim budget, the Finance Minister has earmarked Rs 60,000 crore for the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Yojana and Rs 1,441 crore for the promotion of RuPay debit cards and low-value BHIM-UPI transactions (person-to-merchant). These initiatives are expected to have a positive impact on both cash and digital transactions, encouraging the acceleration of digital initiatives in this conducive environment.

Disclaimer: The article is for informational purposes only and not investment advice.