Heavy buying alert: LIC-backed penny stock under Rs 25 gained over 11 per cent with heavy volume on August 07; do you own it?

The shares of the company saw a spurt in volume by more than 2.47 times with 31,67,143 quantity traded on BSE.

On Wednesday, shares of Vakrangee Ltd gained 11.92 per cent to an intraday high of Rs 22.35 per share. The stock is up by 46 per cent from its 52-week low of Rs 13.20 per share. The shares of the company saw a spurt in volume by more than 2.47 times with 31,67,143 quantity traded on BSE. The company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces. 

Vakrangee Ltd., established in 1990, is a technology-focused company that aims to bridge the digital divide. It operates a network of "Next-Gen Vakrangee Kendras," franchise-based, one-stop convenience stores offering a range of services to rural, semi-urban, and urban India. The company primarily focuses on BFSI services, including banking, insurance, and ATM facilities. Additionally, Vakrangee provides e-commerce and logistics solutions, such as assisted online shopping, healthcare, travel services, telecom and bill payments, and courier services, effectively catering to the diverse needs of its customers in underserved areas.

The company has a market cap of over Rs 2,300 crore and as of June 2024, the Life Insurance Corporation of India (LIC) owns a 6.11 per cent stake in the company. The company is almost debt-free as its current debt is just 12 crore which is just 0.5 per cent of its current market cap. The shares of the company have a PE of 587x, an ROE of 3 per cent and an ROCE of 7.3 per cent. Investors should keep an eye on this Small-Cap IT stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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