Vakrangee Limited is engaged in delivering banking, financial and Insurance (BFSI) services, government to citizen services and business to consumer services catering to the rural, semi-urban and urban markets. The company offers technical expertise to the Indian government’s e-governance program. It was incorporated in 1990 and its equity shares are available for trading on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).
The market capitalisation of Vakrangee Ltd as of 30 August 2018 was over Rs.4,400 crore.
Company’s Wealth and Recent Performance
- The company reported a drop in net profit by nearly 50% for the January-March quarter to stand at Rs.75.96 crore as against Rs.151.39 crore posted during the same period last fiscal.
- The sharp decline in net profit was attributed to invariably higher “other expenses” which surged 1888% to about Rs.228 crore in Q4 FY18 compared to Rs.11.46 crore last year.
- During the May-June quarter, the company reported a significant fall in its consolidated net profit of Rs.13.1 crore, down by nearly 92%.
- Its total revenue fell by 21%, while its EBITDA margin stood at 2.4% as against to 20.3% during the same period last year.
- During the financial year 2018-19, the company is looking to focus on the upgradation of all the kendras into Next-generation Vakrangee kendra model.
- The upgradation process will begin bearing fruits from next year FY 2019-20 onwards.
Vakrangee Ltd. Stock Trends in 2018
- The company’s stock opened for trading on the 1st of January at Rs.418.90 and gained over 2 points to end the day at Rs.420.30. It gained significantly by over 85 points to stand at Rs.505.00 before dropping to the end the month at Rs.364.75.
- It declined further by 70 points on the 1st of February to end the day’s trading at Rs.291.80 and continued to fall considerably over the course of the month to end at Rs.162.70.
- On the 1st of March, the scrip decreased by 8 points to close for the day at Rs.154.60 only to rise to touch Rs.286.00 on the 21st; however, it fell by the end of the month to stand at Rs.221.35.
- When the market opened for trading on the 1st of April, the stock lost 11 points to end the day at Rs.210.30 and slipped further on the backdrop of a decline in the net profit for Q4 FY18 to the end the month at Rs.99.95.
- The market opened for trading on the 2nd of May when the company’s scrip stood at Rs.95 and dropped further to end the month at an all-time low of Rs.34.30.
- It inched by nearly 2 points to stand at Rs.34.20 when it opened at Rs.31 on the 1st of June. The scrip grew gradually to end the month at Rs.66.85.
- On the 2nd of July, the stock price ended for trading at Rs.63.55 and remained steady over the course of the month; however, by the end of the month, it declined to Rs.47.75.
Vakrangee Ltd. Stock Trends in 2016 and 2017
- The stock market opened for trading on the 1st of January 2016, the scrip price stood at Rs.87.48 and rose by 4 points to end the month at Rs.91.30. It gained another 4 points on the 1st of February to stand at Rs.95.43 and continued to incline over the course of the month to end at Rs.106.80. In the month of March, the scrip moved upwards when it opened at Rs.106.83 before dropping towards the end of the month at Rs.99.08.
- On the 1st of April, the stock stood at Rs.99.53 and remained steady over the course of the month to end at Rs.98.75. The scrip price on the 2nd of May stood at Rs.99.00 and lost more than 13 points to stand at Rs.86.35 on the 19th before recovering to end the month at Rs.89.60. It gained 2 points on the 1st of June to end the day at Rs.91.45 and inclined to end the month at Rs.94.13.
- The company’s stock end at Rs.94.48 on the 1st of July and rose to touch at Rs.103.30; however, it declined by 10 points to end the month at Rs.93.18. On the 1st of August, the scrip ended the day’s trading at Rs.93.53 and grew by more than 5 points to end the month at Rs.97.85. On the 1st of September, the stock price of the company stood at Rs.97.30 before it grew significantly to end the month at Rs.119.83.
- The scrip lost a point on the 3rd of October to end the day’s trading at Rs.118.75 and gained more than 8 points by the end of the month to close at Rs.126.43. On the 1st of November, the scrip price stood at Rs.127.23 and by the end of the month, it had gained more than 1o points to close at Rs.138.18. The stock lost a point on the 1st of December when it stood at Rs.137.88 and lost another point to end the month at Rs.136.85.
- When the market opened for the trading on the 2nd of January 2017, the stock price stood at Rs.137.28 and inclined to touch Rs.152.80 on the last day of the month. The scrip gained a point on the 1st of February to end the day at Rs.153.78 and continued its upward trend to end the month at Rs.158.60. On the 1st of March, the stock price stood at Rs.157.73 and grew by 7 points towards the end of the month to close at Rs.164.48.
- On the 3rd of April, the scrip ended the day’s trading at Rs.164.58 and remained steady throughout the month before gaining more than 7 points to end the month at Rs.171.08. When the market opened for trading on the 2nd of May, the stock closed the day’s trading at Rs.170.55 and moved upwards to the close at Rs.182.45 on the last day of the month. On the 1st of June, the scrip ended the day’s trading at Rs.194.50 and rose to touch a high of Rs.222.58 on the 16th of the month before losing 7 points to end the month at Rs.215.40.
- The stock grew by 4 points on the 3rd of July to end the day’s trading at Rs.219.88 and remained steady over the course of the month before closing the month at Rs.220.63. On the 1st of August, the scrip gained 3 points to end the day at Rs.223.28 before touching a new high of Rs.256.00 on the last day of the month. On the 1st of September, the scrip lost nearly 3 points to end the day at Rs.253.20 and ended the month at Rs.247.00.
- When the market opened for trading on the 3rd of October, the stock price of the company stood at Rs.247.38 and continued to grow over the course of the month before ending the month at Rs.281.15. On the 1st of November, the scrip price stood at Rs.274.98 and rose significantly to end the month at Rs.356.75. The stock price on the 1st of December stood at Rs.356.40 and rose considerably to end the month at Rs.420.25 on the last day of the month.
Should You Invest in Vakrangee Ltd?
- Despite declining over the last six months, the company, which is engaged in offering e-governance to rural areas, it’s looking to upgrade its kendras. This is expected to reflect profits only during the fiscal of FY 2019-20.
- The company has made it to the Forbes India Super 50 List reflecting the company’s focus on offering digital services to rural and semi-urban areas.
- The stock trend of the company was steady during the period between 2017 and 18, only to lose towards the end of 2017 and in 2018. The company is expecting better financials by the end of FY 2019-20 due to the upgradation of its kendras.
- The leadership team of the company is looking forward to the upgradation of its kendras before it expects financials to improve and reflect better revenue and net profits.
Vakrangee Ltd. is a technology company and focuses on the country’s last-mile retail points-of-sale to offer real-time BFSI services, government-to-citizen services as well as business-to-consumer services to the rural and semi-urban areas. The e-governance projects include services of payment of electricity, telephone and mobile, processing recruitment applications, issuance of certificates such as birth, death, domicile and land records. Also, services include payment of utility bills, taxes, levies, and railways tickets.
Vakrangee Ltd. was incorporated in 1990 as a private company and was converted as a public limited company in 1992. The company issued IPO of 18,00,000 equity shares in 1994. In 2015, the company tied up with Amazon India for kendras and in 2016, it tied up with Mahindra eMarket Ltd. and various other companies. In 2017, the company was declared a Long Term Debt Free company.
Management Team of Vakrangee Ltd.
Mr. Dinesh Nandwana is the Managing Director and CEO of Vakrangee Ltd. who is also one of the main promoters of the company. He’s known to have steered the company from a modest consultancy company to e-governance company. His wide experience as a mentor of the core management team plays well in delivering the best-in-the-class e-governance and IT-enabled services.
Mr. Sumit Jain is the CEO of e-commerce vertical of the company. He’s also the Sr. Vice-President of the company as well. Prior to Vakrangee, he worked with Barclays, where he worked as an investment banker and prior to Barclays, he worked with Credit Suisse and Intel Corporation. He has an MBA from Stern School of Business at New York University and also holds a B. Tech degree in Computer Science from IIT-Bombay.
Mr. Rajeev Ranjan is the CEO of the e-Governance vertical of the company and is also a Sr. Vice-President. Before joining Vakrangee Ltd., he was working as a senior executive in Tata Group. He has a wide experience in delivering simultaneous national level, large-scale and mission-critical projects on time. He’s known for project execution for Government of India projects such as Population Census management, IGNOU management, PDS management, among others.
Vakrangee Ltd. in NSE, BSE and Listings
The equity shares of Vakrangee Ltd. are available for trading in the NSE and BSE. The codes for trading stocks are as below:
- NSE Code: VAKRANGEE
- BSE Code: 511431
- ISIN: INE051B01021
- Sector: Computers - Software Medium and Small
The company’s listings are as follows:
- S&P CNX 500
- CNX Midcap
"Vakrangee Corporate House"
Plot No. 93, Road No. 16,
M.I.D.C., Marol, Andheri (East),
Mumbai – 400093, Maharashtra
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