Vakrangee locks in at upper circuit; stock gains by more than 40 per cent from COVID-19 lows
On Friday, the shares of Vakrangee Limited locked in at its upper circuit of 10 per cent at Rs 27.10 per share. The jump in the stock price was due to the company’s announcement about being granted an in-principle authorisation to set-up and operate the Bharat Bill Payment Operating Unit (BBPOU) by Reserve Bank of India (RBI).
As per the authorisation, Vakrangee will be able to directly handle payment and aggregation of payment services relating to bills under the scope of Bharat Bill Payment Systems (BBPS). Currently, this service is considered to be one of the key services offered by the company in its Nextgen Vakrangee Kendra business model. Nextgen Vakrangee Kendra’s range of products & services spans across banking, insurance, ATM, financial services, assisted e-commerce, e-governance, and logistics. This boosts the confidence of customers based in rural and semi-urban regions, basically in tier 5 and 6 towns.
For the recently ended June quarter, Vakrangee reported a decrease of 46.48 per cent YoY in the net sales to Rs 67.85 crore while, on the other hand, its net profit rose by 52.21 per cent YoY to Rs 11.89 crore.
Meanwhile, the stock of the company has gained by more than 40 per cent, recovering from its 52-week low of Rs 17.10 per share touched on April 7, 2020.