Protean eGov down 3%; stock recovers from recent low yet 62% below one-year high; what's next?

Shares of Protean eGov Technologies Ltd declined 3.32 per cent on Thursday to close at Rs 847.85. Despite the fall, the stock has recovered 18.33 per cent from its recent 52-week low of Rs 716.50, hit on August 12. However, it still trades 61.89 per cent below its one-year high of Rs 2,225, recorded on August 30 last year.

The counter saw high trading volume on BSE as around 3.53 lakh shares changed hands today, higher than the two-week average volume of 2.07 lakh. Turnover on the counter came at Rs 30.04 crore, commanding a market capitalisation (m-cap) of Rs 3,437.88 crore.

Protean eGov came under severe selling pressure after the Income Tax (I-T) department rejected the company's bid for the managed service provider (MSP) contract under the PAN 2.0 project. The company, however, claimed that the development will have "limited or minimal impact" on its ongoing functioning.

"The mandate given by us to ITD remains as is. So no change. And the distribution business and today, the issuance business as is -- continues to be run as is. There is no change to it," Suresh Sethi, CEO and Managing Director of Protean eGov, said in a recent earnings call.

In response to a query on revenue and margin, Protean CFO Sandeep Mantri said, "In this (June 2025) quarter, there no significant revenue from these large projects. I think from Q2 and fully from Q3 onwards, we should start booking revenues in this project, and therefore, you will see uptick in revenue on account of that. I think these are government projects and margin will be mid-teen type -- mid-teen digit, which is what we are expecting."

On the technical front, support on the counter could be seen in the Rs 780–800 range.

Drumil Vithlani, Technical Research Analyst at Bonanza, said, "The stock has broken past the crucial resistance zone of Rs 820–830 with strong volumes, indicating renewed buying interest. If the momentum sustains, it could move higher towards Rs 880–920 in the near term. On the downside, immediate support lies at Rs 800, which should be used as a stop loss for trading positions."

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, noted, "The stock has recently shown a sharp rebound after falling considerably from the Rs 1,500 zone. At current levels, support is seen around Rs 780, which must hold. On the upside, a confirmed break above Rs 880 could pave the way for targets of Rs 1,010 and Rs 1,190, respectively."