Zaggle Prepaid Ocean Services, a prominent SaaS fintech company, experienced a 14.3% surge in its stock price today, September 11, 2024. This marks the biggest intraday jump in six months. The stock reached a record high of ₹420 following a significant deal with HDFC Ergo. For those interested in share market investment, this presents an exciting opportunity to explore Zaggle's potential as a strong-performing stock.
This rally is a reflection of the company's recent successes and growing partnerships, making it a notable choice for investors.
A game-changing partnership
The 14.3% stock jump can be attributed to a major announcement from Zaggle Prepaid. The company disclosed that it signed an agreement with HDFC Ergo General Insurance to provide its Propel reward platform. Though the financial details of the deal were not revealed, the agreement is expected to last until August 2025, and this strategic move has increased investor confidence in the company's growth trajectory.
Zaggle's continuous efforts to expand its offerings and form partnerships in various sectors have positioned it as a major player in the fintech industry, making it an attractive option for share market investment. With more corporations looking to streamline operations using Zaggle's reward platforms, the potential for long-term growth has become apparent to investors.
Strong financial performance
In addition to its recent partnership with HDFC Ergo, Zaggle has reported strong financial results for the first quarter of FY25. The company achieved revenue of ₹252 crore, a staggering 112.9% year-over-year increase. This growth was accompanied by a significant rise in net profit, which surged by 713.6%, from ₹2.06 crore in Q1 FY24 to ₹16.7 crore in Q1 FY25.
This impressive financial performance has been supported by well-managed operating expenses and reduced incentive payouts, further bolstering investor confidence in the stock. The company's growing revenues and profitability make it a compelling candidate for share market investment, especially for those seeking exposure to the rapidly expanding fintech sector.
Expanding client base and partnerships
Another factor contributing to Zaggle's rising stock is its expanding client base. In Q1 FY25, the company added 100 new clients and onboarded 160,000 users, showcasing its growing influence in the market. For context, during the same quarter in FY24, the company added 185 clients and 150,000 users. Zaggle's consistent client acquisition highlights its increasing acceptance among larger corporations.
Strategic partnerships with high-profile companies like Skydo, Wipro, and PNB MetLife Insurance have also played a key role in boosting Zaggle's stock performance. These partnerships allow Zaggle to penetrate various industries further, providing services such as international inward remittance solutions and corporate travel services. This makes the stock an appealing option for share market investment.
Future growth prospects
Zaggle Prepaid has set ambitious growth targets for FY25, aiming for a 45-55% increase in revenue and expecting to double FY24's revenue within the next two years. The company is also exploring EBITDA-accretive inorganic opportunities, including expanding its product offerings and entering new markets, particularly in the United States.
Domestic brokerage firm Equirus Securities maintains a positive outlook on Zaggle's growth prospects through FY24-FY27, citing recent product launches, the introduction of forex cards, and new partnerships as key drivers of future revenue growth. This optimistic forecast makes Zaggle an enticing option for those considering share market investment.
Invest Safely
Zaggle Prepaid's recent 14.3% stock surge, driven by its strategic partnerships, strong financial performance, and expanding client base, positions it as a standout player in the fintech space. With ambitious growth plans and a consistent upward trajectory, Zaggle offers an exciting opportunity for share market investment. Investors seeking to diversify their portfolios or capitalise on the fintech sector's growth should keep an eye on this stock's continued performance.
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