1. At a Glance
Once dubbed the “Rural Amazon” of India, Vakrangee is now trading for less than a Vadapav. But here’s the twist: Q1 FY26 PAT is up 48.5%, and they just shipped 657 ATMs. Cue dramatic background music.
2. Introduction with Hook
Imagine launching a rocket only to watch it transform mid-air into a paper plane. That’s Vakrangee. Once a multi-bagger darling with dreams of digitizing rural India, today it’s a ₹10 stock with more plot twists than a K-drama marathon.
- Market cap: ₹1,073 Cr (was ~₹20,000 Cr in 2018!)
- Q1 FY26: Sales up 18%, Net Profit up 48.5%
But before you call it a comeback, let’s dissect the carcass.
3. Business Model (WTF Do They Even Do?)
Vakrangee runs franchise-based retail stores called Vakrangee Kendras. These are like Swiss Army knives—only if Swiss Army knives sold insurance, ran ATMs, booked rail tickets, and let you buy gold.
Their main gigs:
- Assisted e-commerce
- Banking & ATM services
- Insurance distribution
- Digital & utility payments
Basically, they do kirana store work, wrap it in digital garb, and call it Fintech for Bharat.
4. Financials Overview
Q1 FY26 Results:
| Metric | Value (₹ Cr) | Growth |
|---|---|---|
| Revenue | 68.84 | +18% |
| EBITDA | 7.82 | +14% |
| Net Profit | 3.32 | +48.5% |
| OPM | 11.4% | Flat |
| EPS | ₹0.03 | LOL |
Margins are still tighter than airport security. But profit is (finally) climbing like it found caffeine.
5. Valuation
CMP: ₹9.91
P/E: 168 (yes, not a typo)
Book Value: ₹1.87
P/B: 5.3x
Fair Value Range:
- P/E Basis (20x optimistic FY26E EPS of ₹0.12): ₹2.4
- P/B Basis (3x Book Value of ₹1.87): ₹5.6
If you’re paying 168x earnings, you better believe in unicorns. Or ghosts.
6. What’s Cooking – News, Triggers, Drama
Recent Headlines Straight from the Gossip Mill:
- New insurance tie-ups with Aditya Birla, Tata AIG, Future Generali, etc.
- Partnered with Punjab & Sind Bank for 600 new ATMs
- SEBI warning letter for disclosure violations (Oops)
- Demise of Chairman Emeritus, Mr. Dinesh Nandwana
Basically: soap opera meets tech startup. With ATMs.
7. Balance Sheet
| Item | Mar 2025 (₹ Cr) |
|---|---|
| Equity Capital | 108 |
| Reserves | 94 |
| Borrowings | 5 |
| Total Liabilities | 309 |
| Total Assets | 309 |
- Net worth: ₹202 Cr
- Debt: Laughably low
- Contingent Liabilities: ₹343 Cr — the monster under the bed.
8. Cash Flow – Sab Number Game Hai
| Year | Ops (₹ Cr) | Invest (₹ Cr) | Finance (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | -42 | -5 | 25 | -22 |
| FY24 | 31 | -7 | -9 | 15 |
| FY25 | -21 | -12 | 30 | -3 |
Operating cash flows are about as predictable as a crypto chart. And about as trustworthy.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 3.5% |
| ROCE | 5.8% |
| P/E | 168x |
| PAT Margin | 4.8% |
| D/E | 0.02 |
ROE lower than your fixed deposit. But hey, at least it’s not negative.
10. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY23 | 197 | 19 | 1 |
| FY24 | 213 | 26 | 4 |
| FY25 | 255 | 24 | 6 |
| TTM | 265 | 25 | 7 |
Not bad if you forget they once did ₹6,500 Cr in revenue back in FY18. Memory is pain.
11. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| LTTS | 11,074 | 1,265 | 35.2 |
| Affle | 2,266 | 381 | 66.4 |
| Cyient | 7,396 | 626 | 22.1 |
| Netweb | 1,149 | 114 | 95.1 |
| Vakrangee | 265 | 7 | 168.0 |
Looks like the underfed cousin at the family reunion. P/E is sky-high while actual earnings are digging for scraps.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar ’23 | Jun ’25 |
|---|---|---|
| Promoters | 42.60% | 40.05% |
| FIIs | 7.67% | 2.73% |
| DIIs | 6.32% | 4.47% |
| Public | 43.41% | 52.73% |
- Promoters are slowly exiting like the DJ at a boring wedding.
- FIIs and DIIs have ghosted harder than Tinder dates.
- Public shareholding up—because retail loves pain.
13. EduInvesting Verdict™
Vakrangee is the stock equivalent of a redemption arc that hasn’t quite started. It’s cheap, yes, but not in the bargain-bin-value sense—more in the “expired product” zone.
Still, with Q1 green shoots, new ATM deployments, and a lower debt profile, there’s some reason to stay awake. Just don’t expect a blockbuster.
“A potential turnaround play—but only if you have the patience of a saint and the optimism of a crypto bro.”
Metadata:
Written by EduInvesting Team | 25 July 2025
Tags: Vakrangee Ltd, Analysis, ATMs, EduInvesting Premium, Retail Tech, Penny Stocks
