This Microcap stock deals in integrated omnichannel payment solutions and caters to banks and corporates were down 2 percent after the promoters sold a 1.2 percent stake worth Rs. 10.57 crore.
Price Action
With a market capitalization of Rs. 849.54 Crores, the shares of AGS Transact Technologies Limited were down by 2 percent in the day’s trade touching a day’s low of Rs. 68.88 per share. The stock reiterated from the day’s low and was trading at Rs. 69.28 which is 1.56 percent lower from the previous closing price of Rs. 70.38 apiece. The stock has delivered a negative return of 23.41 percent over the past year and underperformed the Nifty Index.
What Happened
The decline in stock price was due to stake sale by the company’s promoters. Vineha Enterprises which was holding around 41.75 percent as of September 2024 and they sold around 1.2 percent stake for an average price of Rs. 70.52 per share amounting to 10.57 crore.
About the Company
AGS Transact Technologies Limited (AGSTTL) was established in 2002. It is a leading provider of cash and digital payment solutions in India. They offer a range of customized products across banking, petroleum, retail, and transit sectors, operating over 3,60,000 customer touchpoints nationwide.
Business Model
Their business model is structured around three main verticals which are Banking Automation Solutions, Payment Solutions, and Other Automation Solutions. They are also looking to expand their services to Southeast Asia through their subsidiaries, which are focused on cash management and electronic payment systems.
Financials & Ratios
Its Revenue from operations declined by 6.6 percent year on year from Rs. 377 Crores in Q2FY24 to Rs. 352 Crores in Q2FY25, accompanied by losses of Rs. 61 Crores to a profit of Rs. 15 Crores.
In terms of margin ratios, it has reported a net profit margin of -5.45 percent. They have a debt-to-equity ratio of 2.36. The current ratio is around 1.26 times.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 65.06 percent in AGS Transact Technologies, Foreign Institutional Investors (FII) holding around 0.02 percent, Domestic Institutional Investors (DII) holding around 3.75 percent, and the public holding around 31.17 percent.
Written by Santhosh S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
