Vakrangee stock locked in 20% upper circuit, up 47% in 4 sessions; here’s why

Shares of Vakrangee, one of India's largest last mile distribution platforms, were locked in the 20% upper circuit limit in today's trade, hitting a new 52-week high of ₹30.15 apiece amid a strong surge in volumes, with a total of 211.8 million shares changing hands on both the NSE and BSE by noon.

This upward movement extends the positive momentum observed in the stock over the past three trading sessions, resulting in a cumulative gain of 47% over the four-day period.

In an exchange filing on Wednesday, the company announced that its Board of Directors is scheduled to meet on February 6, 2024.

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The agenda of the meeting includes a proposal for raising funds through the issuance of various instruments, such as equity shares, convertible securities, warrants, debt securities, private placement, preferred issue, qualified institution placement, or a combination of these methods, as determined by the board.

The proposal is subject to obtaining necessary statutory and regulatory approvals, including the approval of the shareholders of the company, according to the company's exchange filing.

Further, the company's board will also approve the financial results for the quarter and nine months ended December 31, 2023.

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In the second quarter (Q2FY24) of the current fiscal year 2023–24, the company reported a total income of ₹5,228.88 lakhs, reflecting a YoY increase of 6.52%. The EBITDA for the same period stood at ₹667.53 lakh, experiencing a YoY growth of 40.80%. 

On the bottom line, the profit after tax reached ₹42.39 lakh, reflecting a YoY surge of 210.55%, according to the company's Q2 earnings report.

During the quarter, the company launched "VISION 2030," outlining ambitious long-term goals. The plan includes reaching over 3 lakh outlets and a minimum of 15,000 ATMs. The overarching objective is to achieve a revenue target of US$1 billion and a gross transaction value exceeding US$150 billion by the year 2030.

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With a significant presence in financial inclusion, the company currently operates more than 14,000 Banking Business Correspondent (BC) points and stands as the fourth-largest ATM operator in rural India, boasting a network of over 6,300+ ATMs. In October last year, the company entered into a partnership agreement with Karnataka Bank to provide BC Banking services from Vakrangee Kendra outlets across “Pan India.”

Vakrangee Kendras are exclusive branded format outlets offering a comprehensive range of products and services across banking, insurance, ATMs, assisted e-commerce, e-government, and total healthcare.

With 84% of Vakrangee Kendra outlets in Tier-4 to 6 locations, the company believes that this partnership will allow its customers access to banking services in the most remote parts of the country.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.