VAKRANGEE LIMITED

Company Overview

Vakrangee Limited, formerly Vakrangee Softwares Limited, is an India-based e-Governance company. The company leverages its vast network of retail access points to deliver real-time BFSI services, government-to-citizen services and business-to-consumer services to the unserved rural, semi-urban and urban markets. The company was founded on May 28, 1990 and is headquartered in Mumbai, India.

The Company’s business is divided into two business segments: e-Governance business, including systems integration projects and print and data management services, and Vakrangee Mart Business, which includes financial inclusion business, government-to-citizen (G2C) and business-to-consumer (B2C) services and white label automated teller machine (ATM) business. The e-Governance business segment provides system integration and other services for India’s national e-Governance plans including unique identification (UID) enrollment, sarva shiksha abhiyan, public distribution system, rashtriya swasthya bima yojana, inspector general of registration and controller of stamps (IGRS), and print and data management services and election related projects. The Vakrangee Mart business segment consists of financial inclusion business, G2C/B2C business as well as white label ATMs (WLA) business.

The current market capitalization stands at Rs 6,243.18 crore.The company has reported a consolidated sales of Rs 702.16 crore and a Net Profit of Rs 89.34 crore for the quarter ended Dec 2014.

 
Share Holding Pattern

Category

No. of Shares

Percentage

Promoters

195,176,514

38.77

Other Companies

176,375,017

35.03

General Public

78,552,668

15.60

Financial Institutions

29,423,155

5.84

Foreign Institutions

12,198,484

2.42

Foreign - NRI

7,183,068

1.43

Others

4,573,334

0.91

 
Financial Details
  • Market Cap (Rs Cr) – 6243.18

  • Company P/E – 23.16

  • Industry P/E – 25.60

  • Book Value (Rs) – 13.45

  • Dividend (%) – 25%

  • EPS (TTM) – 5.35

  • Dividend Yield (%) – 0.20%

  • Face Value (Rs) - 1

 
Industry Overview

India is the world's largest sourcing destination for the information technology (IT) industry, accounting for approximately 52 per cent of the US$ 124-130 billion market. The industry employs about 10 million Indians and continues to contribute significantly to the social and economic transformation in the country.

The IT industry has not only transformed India's image on the global platform, but has also fuelled economic growth by energising the higher education sector especially in engineering and computer science. India's cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US, continues to be its unique selling proposition (USP) in the global sourcing market.

The Indian IT and ITeS industry is divided into four major segments – IT services, business process management (BPM), software products and engineering services, and hardware. The IT-BPM sector in India grew at a compound annual growth rate (CAGR) of 25 per cent over 2000-2013, which is 3-4 times higher than the global IT-BPM spend, and is estimated to expand at a CAGR of 9.5 per cent to US$ 300 billion by 2020.

India continues to be the topmost off shoring destination for IT companies followed by China and Malaysia in second and third position, respectively. Emerging technologies present an entire new gamut of opportunities for IT firms in India. Social, mobility, analytics and cloud (SMAC) collectively provide a US$ 1 trillion opportunity. Cloud represents the largest opportunity under SMAC, increasing at a CAGR of approximately 30 per cent to around US$ 650-700 billion by 2020. Social media is the second most lucrative segment for IT firms, offering a US$ 250 billion market opportunity by 2020.

The US$ 12 billion plus rising Indian e-commerce business market is witnessing a rush of hiring and may need 100,000 people over the next six months, as per industry experts. The industry offers a slew of opportunities and scope for innovation thereby attracting the young mind to push their limits.

 
Balance Sheet

 

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

Sources Of Funds

 

 

 

 

 

Total Share Capital

50.35

50.25

25.02

23.71

22.50

Equity Share Capital

50.35

50.25

25.02

23.71

22.50

Share Application Money

102.15

0.00

0.00

8.61

4.15

Reserves

652.46

465.29

389.06

323.92

274.14

Networth

804.96

515.54

414.08

356.24

300.79

Secured Loans

392.60

415.24

353.28

148.89

57.01

Unsecured Loans

0.00

0.00

10.93

4.00

4.50

Total Debt

392.60

415.24

364.21

152.89

61.51

Total Liabilities

1,197.56

930.78

778.29

509.13

362.30

Application Of Funds

 

 

 

 

 

Gross Block

996.46

799.80

711.77

352.23

317.65

Less: Accum. Depreciation

561.48

381.42

224.65

137.32

86.86

Net Block

434.98

418.38

487.12

214.91

230.79

Capital Work in Progress

48.11

0.00

0.08

0.00

0.00

Investments

3.76

11.67

58.37

60.06

53.12

Inventories

130.61

19.86

3.59

0.90

7.77

Sundry Debtors

791.96

661.37

445.24

269.86

142.25

Cash and Bank Balance

29.21

31.22

25.97

8.80

0.67

Total Current Assets

951.78

712.45

474.80

279.56

150.69

Loans and Advances

289.36

216.58

75.01

95.44

20.93

Fixed Deposits

0.00

0.00

0.00

9.37

3.57

Total CA, Loans & Advances

1,241.14

929.03

549.81

384.37

175.19

Current Liabilities

422.83

387.62

295.62

131.11

87.31

Provisions

107.59

40.69

21.46

19.11

9.49

Total CL & Provisions

530.42

428.31

317.08

150.22

96.80

Net Current Assets

710.72

500.72

232.73

234.15

78.39

Total Assets

1,197.57

930.77

778.30

509.12

362.30

Contingent Liabilities

21.65

27.89

17.09

7.00

0.00

 
Profit and Loss Account

 

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

Income

 

 

 

 

 

Sales Turnover

1,965.39

1,555.78

1,352.14

852.34

409.35

Net Sales

1,965.39

1,555.78

1,352.14

852.34

409.35

Other Income

9.24

7.42

4.23

1.43

0.49

Stock Adjustments

-11.63

16.10

1.08

0.00

0.00

Total Income

1,963.00

1,579.30

1,357.45

853.77

409.84

Expenditure

 

 

 

 

 

Power & Fuel Cost

0.00

0.00

0.00

0.27

0.31

Employee Cost

26.22

25.05

12.24

7.15

6.12

Other Manufacturing Expenses

1,356.02

1,148.46

1,090.76

699.41

320.14

Selling and Admin Expenses

0.00

0.00

0.00

8.13

4.17

Miscellaneous Expenses

16.61

14.56

12.26

0.81

0.48

Total Expenses

1,398.85

1,188.07

1,115.26

715.77

331.22

Operating Profit

554.91

383.81

237.96

136.57

78.13

PBDIT

564.15

391.23

242.19

138.00

78.62

Interest

77.88

85.84

55.25

17.91

5.86

PBDT

486.27

305.39

186.94

120.09

72.76

Depreciation

180.32

156.94

87.40

53.30

40.61

Profit Before Tax

305.95

148.45

99.54

66.79

32.15

PBT (Post Extra-ord Items)

305.95

148.45

99.54

65.70

32.18

Tax

106.96

39.18

32.04

17.63

8.04

Reported Net Profit

199.00

109.27

67.51

49.17

24.11

Total Value Addition

1,398.85

1,188.06

1,115.26

715.77

331.22

Equity Dividend

12.59

10.05

10.01

4.99

3.37

Corporate Dividend Tax

2.14

1.71

1.62

0.81

0.56

Per share data (annualised)

 

 

 

 

 

Shares in issue (lakhs)

5,034.82

5,024.99

2,502.40

237.12

224.96

Earning Per Share (Rs)

3.95

2.17

2.70

20.74

10.72

Equity Dividend (%)

25.00

20.00

20.00

20.00

15.00

Book Value (Rs)

13.96

10.26

16.55

146.61

131.86

 
Dividend and Bonus History
Vakrangee Limited Dividend and Bonus History
 
Index and Company Price Movement Comparison
Vakrangee Limited Index and Company Price Movement
 
Company Forecast
Vakrangee Limited Company Forecast
 
Technical Indicators

Symbol

Value

Action

RSI(14)

82.105

Overbought

STOCH(9,6)

73.090

Buy

STOCHRSI(14)

60.404

Buy

MACD(12,26)

52.200

Buy

ADX(14)

71.773

Overbought

Williams %R

-22.809

Buy

CCI(14)

86.8763

Buy

ATR(14)

41.1536

High Volatility

Highs/Lows(14)

50.0500

Buy

Ultimate Oscillator

64.876

Buy

ROC

127.682

Buy

Bull/Bear Power(13)

82.2740

Buy

Important Ratios
  • PBIT – 18.97 v/s 14.51

  • RoCE – 32.05 v/s 24.17

  • RoE – 22.50 v/s 20.30

  • Net Profit Margin – 10.07 v/s 6.99

  • Return on net worth – 28.31 v/s 21.19

  • D/E Ratio – 0.56 v/s 0.81

  • Interest Cover – 4.93 v/s 2.73

  • Current Ratio – 1.09 v/s 0.96

  • Reserves – 652.46 cr v/s 465.29 cr

  • PAT – 199.00 cr v/s 109.27 cr

  • Total assets – 1197.57 cr v/s 930.77 cr

  • Net sales – 1965.39 cr v/s 1555.78 cr

  • Book Value – 13.96 v/s 10.26

Simple Moving Average

Days

BSE

NSE

30

126.03

126.09

50

125.10

125.09

150

129.28

129.29

200

128.12

128.13

Recommendations

Buy Vakrangee Ltd. at current or lower market levels

Reasons for the recommendations are :

  • Niche business and unique business model.

  • Attractive CAGR on both EBITA and Revenue.

  • MoU with leading market players and higher growth potential in rural and suburban India.

  • Attractive order book and licenses will guarantee profits.

  • Healthy financial position and attractive ratios.

  • Immense growth opportunity in e-governance service providing industry due to lack of linking of people with ATMs, Banks and other companies products.

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This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.

 

 

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