Shares of this smallcap company surged around 6 percent in Monday’s trading session after entering into an agreement with Axis Bank. The shares have delivered a multibagger return of 138 percent to its shareholders in one year.
With a market capitalisation of Rs. 4,628 crores, the shares of Zaggle Prepaid Ocean Services Ltd started Monday’s trading session on a higher note at Rs. 360.20 compared to its previous close of Rs. 358.40. During the trading session, the shares hit a high of Rs. 389.35, gaining around 6 percent and are currently trading at Rs. 377 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it was contracted to be a referral partner of Axis Bank Ltd to carry out activities such as sales and distribution, marketing and campaigning bundled with Zaggle expense management to drive forex card spends and usage of the software.
Furthermore, Zaggle can leverage its existing corporate base to sell forex cards to employees of the corporate client, and it can be tightly coupled with Zaggle expense management software.
Looking at the company’s financial statements, the revenue increased by 9 percent from Rs. 184 crores during the September quarter to Rs. 200 crores in the December quarter. In addition, the net profits magnified by 87 percent from Rs. 8 crores to Rs. 15 crores during the same period.
Zaggle Prepaid Ocean Services Limited offers a diversified range of fintech and SaaS products and services, to manage business expenses, track employee and channel partner rewards, incentives management, merchant gift card management, and many more.
Moreover, it holds the leading position for the issuance of prepaid cards in India, with 50+ million cards issued and it has a 16 percent market share by transaction value and has a strong business network with some notable key players such as Kotak Mahindra Bank, Visa, ICICI Bank, Yes Bank, DBS Bank, and others. Some of the key customers include Tata Steel, Greenply, Persistent Systems, and others.
According to the BSE data, Ace Investor Mr Ashish Kacholia, entering the stock in September 2022, currently holds around 27.03 lakh equity shares equivalent to a 2.21 percent stake in this company. The current holding value of his investment amounts to Rs. 102.1 crores.
Headquartered in Mumbai, Zaggle Prepaid Ocean Services was incorporated in 2011. The company specializes in providing solutions for expense management, employee tax benefits, rewards and recognition programs, corporate gifting, and incentives.
Written By Vaibhav Patil
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