BSE / NSE Code: 511431/ VAKRANGEE | Face Value: Rs 1 | CMP: Rs50 |
52Weeks H/L (Rs): 73.30 – 22.35 | Marketcap (Rs): 5302 crore |
Promoters holding: 41.74% | Institutional holding: 36.57% | Public holding: 21.69%
Incorporated in 1990, Vakrangee is the unique technology driven company focused on building India’s largest network of last-mile retail outlets to deliver real-time banking and financial services, ATM, insurance, e-governance, e-commerce and logistics services to the unserved rural, semi-urban and urban markets. The Assisted Digital Convenience stores are called as “Vakrangee Kendra” which acts as the “One-stop shop” for availing various services and products. Vakrangee has been at the forefront in financial inclusion space in India. It has signed “Common BC” and “National BC” agreements with various public sector banks for offering real-time banking to unserved and underserved rurban population. Banking at “Vakrangee Kendra” outlets is a unique experience with disruptive technology like APS, e-KYC, inter-operability and real-time transactions. In addition to banking these outlets also provide insurance products, e-governance services and ecommerce products.
Once upon a time this was darling stock for traders and investors. Its price went up to Rs500+ level in FY18. Now it is available near Rs50. Many investors feel that it is throw away price but as per financial analysis it is not cheap stock even at this price.
Just look at its financials. It has an equity base of Rs105.88 crore. As on FY19, reserve was around Rs2496.32 crore. Company had reported massive growth during FY15 to FY18. In January 2018, stock made high of Rs515 and sudden fall started with some corporate governance issue. The stock made low of Rs22.35 on 5th November 2018 and started slowly its upward journey. But in last one year company’s top line and bottom line have fallen without any reason. During FY18 it has reported income of Rs6502 crore and PAT of Rs680.46 crore while during FY19 it has posted income of just Rs1508.23 crore and PAT of Rs25.23 crore. The Company has reported EPS of Rs.0.24 in FY19 and it is trading at P/E ratio of 200+ at CMP. In current market situation there are numbers of opportunities in fundamentally sound stocks so why one should invest in this type of stock. The financial numbers don’t indicate all is well. There is certainly something brewing in this company. Some investors have still hope from this company but looking at its financial performance our advice is to stay away and don’t try bottom fishing in this stock.