Why Vakrangee Share Price is Rising

The stock market is often unpredictable, with prices rising and falling unexpectedly. It's a cycle that keeps investors on edge.

When stocks surge, confidence builds, but a sharp decline can be a real nightmare. One of the biggest fears for investors is when a stock crashes, leaving them uncertain about its recovery.

Vakrangee's journey highlights this perfectly. The company provides a range of services, including financial inclusion, e-governance, and logistics solutions, particularly through its vast network of Vakrangee Kendras across India.

In early 2018, its stock experienced a major crash, plummeting by almost 95%, wiping out significant wealth for many investors. Unlike other stocks that tend to bounce back, Vakrangee struggled to recover, leaving investors stuck in a prolonged downturn.

Recently, though, there's been a shift. Over the past month, Vakrangee share price jumped by 70%, catching the attention of investors. While it's still far from its 2018 peak, this rebound raises questions about what's driving this renewed momentum.

#1 Fundraising Plans

Vakrangee share price is on the rise ever since the company on 17 September 2024 issued a notice. In the notice the company informed its shareholders about an upcoming fund raising plans to be discussed at the upcoming board meeting.

As planned, on 24 September 2024, Vakrangee followed through with its fundraising efforts. The company announced the preferential allotment of 2 billion (bn) convertible warrants to the non-promoter category.

The price of these warrants will be determined based on SEBI's guidelines, with the allotment awaiting necessary approvals from regulatory bodies and shareholders.

In addition to this, Vakrangee also increased its authorised share capital from Rs 12.5 bn to Rs 15 bn. This change allows the company to issue more equity shares in the future, giving it more financial flexibility.

Fundraising activities like these are seen as positive by the market. When a company raises capital through methods such as convertible warrants, it signals growth opportunities.

#2 New Strategic Partnership

On 17 September 2024, Vakrangee announced a new corporate partnership with Star Health & Allied Insurance, one of India's largest retail health insurance companies.

This collaboration aims to expand access to health insurance services across Vakrangee's network of over 21,900 Kendras. Through this tie-up, Vakrangee will offer a variety of health insurance products to its customers.

Star Health, established in 2006, is known for its strong presence in the health insurance sector. It offers specialised plans for critical conditions such as cancer, diabetes, and heart diseases, as well as products tailored for senior citizens, women, and children.

This partnership with Vakrangee ensures that Star Health's insurance products will be accessible to a broader audience. Customers will benefit from affordable health coverage options, including family and individual health policies, along with critical illness plans.

This strategic move could positively impact Vakrangee's share price as investors see potential growth opportunities from its expanded healthcare offerings.

What Next?

Vakrangee is targeting significant growth over the next few years, focusing on expanding its network of physical and digital convenience stores across India.

Vakrangee aims to reach the last unserved customer, ensuring that its services are available even in the most remote areas. This expansion is expected to drive revenue growth and increase the company's market share.

Vakrangee is also capitalising on the growing demand for ATMs and banking automation solutions. With India's banking sector planning to add over 20,000 new ATMs and replace around 80,000 machines over the next two years, Vakrangee is positioning itself to benefit from this cycle.

The company already has an order book of over 3,000 ATMs and plans to take advantage of global trends, such as the shift from Windows 7 to Windows 10 machines, to further grow its business.

On the software front, Vakrangee's ATM monitoring tool, 'Perfo,' is showing strong growth, with a 100% CAGR over the last three years. This product, combined with Vakrangee's IP portfolio, including nine patents, enhances the company's competitiveness in the ATM and banking automation market, both in India and abroad.

Looking ahead, Vakrangee has set ambitious financial targets. It aims to achieve revenue of Rs 82 bn by FY30, up from Rs 1.9 bn in FY23.

Additionally, it is targeting a PAT margin of 10-12%, which would mark a substantial improvement from its current 0.5%. The company's gross transaction value (GTV) is expected to rise sharply, reaching US$ 150 bn by FY30.

With these strategies in place, Vakrangee is positioning itself for strong growth in both its physical and digital businesses, aiming to capture a larger share of the rapidly evolving financial services market.

How Vakrangee Share Price has Performed Recently

In the past five days, Vakrangee share price has rallied 43%. In the last month, it is up 70%.

In 2024, so far its share price rallied 82% and it went up 104% in the last year.

The stock touched its 52-week high of Rs 36.2 on 30 September 2024 and a 52-week low of Rs 16.2 on 10 October 2023.

About Vakrangee

Vakrangee Limited incorporated in 28 May 1990 as a Private Limited company under the name Vakrangee Investment & Consultancy Limited.

In April 3 1992 name of the company was changed to Vakrangee Investment and then to Vakrangee in year 1995.

The company has emerged as one of India's largest last mile distribution platform with a physical as well as digital ecosystem in place with a pan-India presence.

The company is delivering realtime banking & financial services ATM insurance e-governance ecommerce (including Healthcare services) and logistics services to the unserved and underserved rural, semi-urban, and urban markets.

For more details, see the Vakrangee company fact sheet and quarterly results.

You can also compare Vakrangee with its peers:

Vakrangee vs CAMS

Vakrangee vs Affle India

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Happy investing!

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