Small cap stocks cheaper than Rs 30 are witnessing a huge surge. Two more big announcements have been made by the company, due to which the stock is witnessing a strong jump. Name of the company Vakrangee Limited which has come on the radar of investors.
If we look at the movement of Vakrangee Limited shares, the stock saw a rise of 11 percent on Wednesday, September 18. The stock has given a return of 34 percent in the last one year. If we look at the business model of the company, it is a technology company. Its focus is on financial, social and digital inclusion of customers. It works on an asset-light, digital convenience store, franchise-based business model to meet the needs of its stakeholders.
First reason
Actually, the reason for the rise in the stock is two announcements made by the company. First – The Board of Directors of the company is going to hold a meeting on September 24 to consider the proposal to raise money. The company informed in the exchange filing that the meeting of the Board of Directors of the company will be held on 24 September 2024 to operate various types of business. In which the company will consider the proposal to raise money including rights issue, warrant, preferential issue.
Second reason
The company has partnered with Star Health Insurance to offer health insurance products on its network. The company, which has a pan-India network, will offer insurance products from Star Health to its customers through this partnership, which will make health insurance accessible even in remote and limited service areas of the country.
Company Fundamentals
The market cap of Vakrangee Limited is Rs 2,465 crore. The company is completely debt free. If we look at the shareholding pattern, the promoters hold 41.93%. FIIs i.e. foreign investors hold 2.93% and DIIs i.e. domestic investors hold 6.18%. The company’s stock P/E is – 426, which looks quite high compared to its peer companies.
Disclaimer: We have no opinion on the stocks mentioned in this article. Please consult your financial advisor before making any investment decision.