Zaggle Prepaid shares rise 8% on highest net profit, revenue in Q4

Shares of Zaggle Prepaid Ocean Services rose nearly 8% on Friday after the IT enabled services firm reported a 153% jump in QoQ net profit for the March 2024  quarter. Profit climbed to Rs. 19.16 crore-its highest ever-in Q4 against Rs 7.56 crore in the previous quarter. The stock climbed 7.69% to Rs 338.05 today against the previous close of Rs 313.95 on BSE. Zaggle stock opened higher at Rs 330.25 on BSE. Zaggle’s market cap rose to Rs 3912 crore. Total 1.70 lakh shares changed hands amounting to a turnover of Rs 5.57 crore on BSE.   

In terms of technicals, the relative strength index (RSI) of Zaggle stands at 62.8, signaling it's trading neither in the overbought nor in the oversold zone. The stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 150 day moving averages.      

The stock has risen 46.75 per cent this year and gained 25.43% in six months.    

Revenue climbed 46% to Rs 273.3 crore-highest ever-in Q4 on a year on year basis and surged 37% compared to the last quarter.

On the EBITDA front too, the firm recorded its highest ever earnings figure on both quarterly and annual basis.

EBITDA rose 53.9% to Rs 27.22 crore in Q4 against Rs 203.8 crore in the Q4 of FY23.

Equirus Securities has kept its price target of Rs 400 unchanged, an upside of 29% from the previous close post Q4 earnings.

"We remain confident on Zaggle’s ability to showcase strong revenue growth over FY24-FY27 driven by revenues coming from recent launches and initiatives of Zoyer, Forex cards and other new tie-ups that expand Zaggle’s offerings. With ~Rs 400 mn plus revenues from Zoyer in 4Q, we believe Zaggle can record more than Rs 2 bn revenues from Zoyer in FY25 (vs Rs 850 mn in FY24). Its 3,000  plus customer base can act as a good base for cross-sell of Save/Propel (20% overlap currently) as well as Zoyer. Retain LONG with a FCFF based Mar’25 price target of Rs 400 (unchanged)," said Equirus in an earnings review note.