Shares of this IT stock under the ‘small-cap’ category jumped nearly 6 percent in Wednesday’s trading session after the company signed an agreement to offer Travel & Expense Management Solutions. Year-to-date, the company’s stock has risen close to 35 percent for its holders.
With a market capitalization of Rs 3,587.51 crores, the stocks of Zaggle Prepaid Ocean Services Limited started their trading session on Wednesday at Rs 280 and closed the session at Rs 292.90, gaining around 6 percent compared to the previous close of Rs 277.70 apiece.
Such sharp stock price movements were observed today after the company, via a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated about signing a domestic Business Partner Agreement with ‘Riya Travel & Tours (India) Private Limited’.
As per the agreement, both companies will leverage their existing as well as new corporate base to sell Integrated ‘Travel & Expense Management Solutions’ to corporate clients. The contract is decided to be executed for a period of three years.
Mr. Ashish Kacholia, one of the well-known ace investors based in India, has invested in Zaggle Prepaid Ocean Services Limited. He took an entry recently by way of subscribing to the equity shares in September 2023 and currently, as per the December 2023 quarter, he holds 27.03 lakh equity shares equivalent to a 2.21 percent stake in the company.
During the recent financial quarters, the company’s basic business parameters, i.e., its operating revenues as well as after-tax profits, saw a jump in numbers with the former rising from Rs 184 crores during Q2FY24 to Rs 200 crores during Q3FY24, and the latter, during the same time horizon, nearly doubled from Rs 8 crores to Rs 15 crores.
In addition, the company also reported above-average return ratios during FY22-23 with the return on equity (RoE) at 46.97 percent and the return on capital employed (RoCE) at 36.73 percent.
According to the latest presentations, the company’s revenue from operations grew by 49.08 percent in the year ended March 31, 2023, with an EBITDA margin of 8.69 percent. The customer acquisition/retention costs contribute to nearly 18 percent of the company’s total revenue
Reports say that the overall market revenue for ‘payments’ in India is estimated to be more than Rs 1,750 Bn.
Founded in 2011, Zaggle Prepaid Ocean Services Limited is a leading player in expense management that operates with a diversified range of fintech products and services. The company also provides software as a service (SaaS), including tax and payroll software, etc.
Written by Amit Madnani
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