Vakrangee is up by 8.39% in today’s session; Is it a great opportunity to buy?

Shares of Vakrangee are among the top gainers on the bourses today.

On June 24 2022, the shares of Vakrangee Limited closed at Rs 25.85 with 8.39% gains. In the last previous 5 trading sessions, the stock was trading in the red. However, in a single trading session, the stock recovered all its last 4-day losses.

However, the stock has been in a strong downtrend. Two months back, on April 4 2022, the stock was trading at Rs 39.3. The stock has fallen more than 30% from that level to Rs 25.85 till today.

Vakrangee is involved in the diversified business of e-governance, data digitization, software, data digitalization, logistics, software and license. The company has the main e-commerce and logistics helping the customers to access services like online shopping, travel services, telecom, and bill payment services.

The company has shown degrowth in both the top line and bottom line. The company’s 5-year CAGR revenue growth stood at –28%. The company’s poor financial condition is reflected in the stock performance which has fallen 35% in the last 5 years.

The company was in the news recently regarding the company partnering with Decathlon, a world leader in sports equipment to provide complete sports products to all Decathlon’s customers on Vakrangee’s platform.

The Q4 results were good for the company. Around 150% YOY growth in the company’s Q4 sales was reported at Rs 779 crore. The company’s net profit was improved by 74% on a YOY basis. Q4 numbers are looking extremely good due to lower base numbers in FY21.

The company has delivered a low ROE of 3% for the last 3 years. It also has a high debtor’s day of 447 days. The company has a market capitalisation of Rs 2,750 crore. The stock is trading at a PE valuation of 25x. The company’s stock has a 52-week high and low of Rs 47 and Rs 23.6.