Smallcap stock jumps 7% after partnering with Canara Bank to provide banking services 

This share represents one of India’s leading last-mile distribution platforms, which integrates both physical and digital ecosystems to provide a wide range of essential services. The stock has jumped 7.39 percent after partnering with Canara Bank to provide banking services. 

Stock Price Movement: 

In Thursday’s trading session, Vakrangee Limited’s stock surged by 7.39 percent, trading at Rs. 31.37 per share, up from its previous closing price of Rs. 29.21 per share. As of December 19, 2024, the company’s market capitalization is approximately Rs. 3,381.18 crore. 

What Happened: 

Vakrangee Limited has partnered with Canara Bank as a Corporate Business Correspondent (CBC) to provide banking services across underserved regions in India. This partnership allows Vakrangee to offer services like account opening, fund transfers, loan repayments, social security schemes, and pension payments through its extensive network of Kendras. 

The partnership supports financial inclusion and enhances rural banking infrastructure. This collaboration ensures seamless access to banking in remote areas, bridging the financial gap. 

Product and Service Portfolio 

Vakrangee operates a vast network of over 44,000 franchisee-based Kendras, providing a wide range of services such as banking, insurance, e-governance, utility payments, and e-commerce. The company plays a pivotal role in delivering IT solutions for various government projects, including land record digitization and electoral roll management. 

In addition, Vakrangee acts as a banking correspondent for multiple banks, offering financial services such as microinsurance. Through its extensive reach, the company helps connect underserved regions with essential services, contributing significantly to financial inclusion and digital empowerment. 

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Recent Quarter Results and Ratios: 

Vakrangee Limited’s revenue decreased from Rs. 51.54 crore in Q2 FY24 to Rs. 65.25 crore in Q2 FY25, marking a decline of 26.60 percent. However, the company’s net profit grew by 40.48 percent, increasing from Rs. 0.42 crore in Q2 FY24 to Rs. 0.59 crore in Q2 FY25. 

In terms of financial ratios, Vakrangee reported a Return on Capital Employed (ROCE) of 7.32 percent and a Return on Equity (ROE) of 2.76 percent. The company’s debt-to-equity ratio is low at 0.05x, indicating it is almost debt-free. The Earnings Per Share (EPS) for the company stands at Rs. 0.06.

Shareholding Pattern: 

As of September 2024, the shareholding pattern of Vakrangee Limited is as follows: the promoters hold a majority stake of 41.67%, while foreign institutional investors (FII) own 2.74%, and domestic institutional investors (DII) hold 5.13%. The remaining 50.47% of the shares are held by the public. 

Company Overview: 

Vakrangee Limited was established in 1990 and operates one of India’s largest last-mile distribution platforms with a nationwide presence. The company offers a range of services, including real-time banking, financial services, ATMs, insurance, e-governance, e-commerce, healthcare, and logistics, all through its Vakrangee Kendra outlets and the BharatEasy Mobile Super app. 

Vakrangee has built a network of over 14,000 Banking BC points and more than 6,000 ATMs, with the goal of further expanding its presence in both rural and urban areas, driving greater financial inclusion across India. 

Written By – Nikhil Naik 

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