Smallcap stock hits 5% upper circuit after partnering with Central Bank of India
Smallcap stock hits 5% upper circuit after partnering with Central Bank of India
This share is one of India’s leading last-mile distribution platforms, which integrates both physical and digital ecosystems. The stock has hit a 5-upper circuit after partnering with the Central Bank of India.
Stock Price Movement:
In Tuesday’s trading session, Vakrangee Limited‘s stock surged by 5 percent, reaching an upper circuit of Rs. 26.54 per share on Monday, up from its previous closing price of Rs. 25.28 per share. As of December 3, 2024, the company’s market capitalization is approximately Rs. 2,860.58 crore.
What Happened:
Vakrangee Limited has partnered with the Central Bank of India as a Corporate Business Correspondent (CBC) to provide banking services nationwide. The partnership enables Vakrangee to offer services such as account openings, cash deposits/withdrawals, loans, insurance, mutual funds, Aadhaar/mobile seeding, and utility bill payments.
Vakrangee will also support government schemes like PPF, PMSBY, PMJJBY, and APY while aiding farmers with CKCC loan renewals. This collaboration will strengthen access to essential banking services in unserved and underserved regions of India.
Product and Service Portfolio
Vakrangee operates over 44,000 franchisee-based Kendras, offering banking, insurance, e-governance, utility payments, and e-commerce services. It provides IT solutions for government projects like land record digitization and electoral roll management.
The company also serves as a banking correspondent for multiple banks, delivering financial services, including microinsurance. Vakrangee connects underserved regions with essential services.
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Recent quarter results and ratios:
Vakrangee Limited’s revenue has slightly decreased from Rs. 51.54 crore in Q2 FY24 to Rs. 65.25 crore in Q2 FY25, which has down by 26.60 percent. The net profit of Vakrangee Limited has grown by 40.48 percent from Rs. 0.42 crore in Q2 FY24 to Rs. 0.59 crore in Q2 FY25.
In terms of return ratios, the company’s ROCE and ROE should be 7.32 percent and 2.76 percent, respectively. The debt-to-equity ratio of the company is to be 0.05x, which shows the company is almost debt-free. Vakrangee Limited’s EPS is to be Rs. 0.06.
Shareholding Pattern:
In September 2024, Vakrangee Limited had a majority stake held by the promoters at 41.67 percent, foreign institutional investors at 2.74 percent, domestic institutional investors at 5.13 percent, and the public at 50.47 percent.
Company Overview:
Vakrangee Limited was incorporated in 1990 and operates one of India’s largest last-mile distribution platforms with a nationwide presence. It delivers real-time banking, financial services, ATMs, insurance, e-governance, e-commerce, healthcare, and logistics through its Vakrangee Kendra outlets and BharatEasy Mobile Super app.
With over 14,000 Banking BC points and 6,000+ ATMs, Vakrangee aims to expand its presence across rural and urban areas, enhancing financial inclusion.
Written By – Nikhil Naik
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