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You are here : IndiaNotes >> Research & Analysis >> Companies >> Vakrangee Ltd. >> Research

Techno Funda Call: Buy Vakrangee for a short-term perspective

SMC | 05 Jan, 2017  | Follow Author | Add to my Favourites 
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A steady growth company with almost negligible debt to equity ratio. Its business is fast transforming driven by the rising share of Vakrangee Kendra Business. Financial inclusion, rising penetration of ATM and strong potentialof Vakrangee Kendra would drive the revenue growth ahead. Vakrangee Kendra now contributes to around 50% of the revenues of company. Now the new strategy of Vakrangee Kendra retail segment is to expand mainly through franchisees route with no major Capex.


BUSINESS PROFILE


Vakrangee is the unique technology driven company focused on building India's largest network of last-mile retail touch points to deliver real-time banking,insurance, e-governance, e-commerce and ATM services to the unserved rural, semi-urban and urban markets. These retail touch points are called as “Vakrangee Kendra” which acts as the “One-stop shop” for availing various services and products.


INVESTMENT RATIONALE


The company is currently operating more than 20,000 “Vakrangee Kendra” outlets across India. The company has plans to setup and manage a total of 75,000 “Vakrangee Kendra” outlets across India by 2020 and covering the presence in all Pin code of thecountry. Moreover, it has been at the forefront in financial inclusion space in India.


It has signed “Common BC” and “National BC” agreements with various public sector banks for offering real-time banking to unserved and underserved rural, semi-urban andurban population. Banking at “Vakrangee Kendra” outlets is a unique experience with disruptive technology like AEPS, e-KYC, inter-operability and real-time transactions.


The Company has corporate agency tie-up with TATA AIG General Insurance Company, Reliance General Insurance Company Limited, HDFC Standard LifeInsurance Company Limited and Bajaj Allianz Life Insurance Company Limited to distribute Life and General Insurance product. This alliance provides a strong potential to expand the e-commerce operations from “Vakrangee Kendra” outlets over comings years.


The management of the company moves towards its vision 2020 has strategic tie-up with Indian Oil Corporation Limited (IOC), India's largest commercial enterprise and Vakrangee Kendra shall be set up in about 25000 plus IOC Retail Outlets (Filling/Gas Station) located PAN India.

 

TECHNICAL TRENDS

 



We recommend a buy in the stock of Vakrangee ltd for a short-term perspective. The stock is trading at its good support level with good fundamental records and is expected to move up from this level. It made a 52 week low Rs. 155.80 and 52 week high of Rs 287.30. Buy around at 275 with a closing below stop loss of Rs. 263 levels for the target of Rs.305. 



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About SMC
SMC Research, founded in 1990, is India’s leading share and stock broker, provides a wide range of financial services and investment solutions. A blend of extensive experience, diverse talent and client focus has made us the 4th largest broking house in India(Source: Dun and Bradstreet, 2008). Over the years, SMC has expanded its operations domestically as well as internationally. Existing network includes regional offices at Mumbai, Kolkata, Chennai, Cochin, Ahmedabad, Jaipur, Hyderabad, Bangalore plus a growing network of 2100+ offices spread across 425 cities/towns in India.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.



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