Company Overview

Vakrangee Limited, formerly Vakrangee Softwares Limited, is an India-based e-Governance

company. The company leverages its vast network of retail access points to deliver real-time

BFSI services, government-to-citizen services and business-to-consumer services to the

unserved rural, semi-urban and urban markets. The company was founded on May 28, 1990

and is headquartered in Mumbai, India.

The Company’s business is divided into two business segments: e-Governance business,

including systems integration projects and print and data management services, and Vakrangee

Mart Business, which includes financial inclusion business, government-to-citizen (G2C) and

business-to-consumer (B2C) services and white label automated teller machine (ATM)

business. The e-Governance business segment provides system integration and other services

for India’s national e-Governance plans including unique identification (UID) enrollment, sarva

shiksha abhiyan, public distribution system, rashtriya swasthya bima yojana, inspector general

of registration and controller of stamps (IGRS), and print and data management services and

election related projects. The Vakrangee Mart business segment consists of financial inclusion

business, G2C/B2C business as well as white label ATMs (WLA) business.

The current market capitalization stands at Rs 6,243.18 crore.The company has reported a

consolidated sales of Rs 702.16 crore and a Net Profit of Rs 89.34 crore for the quarter ended

Dec 2014.

Category No. of Shares Percentage

Promoters 195,176,514 38.77

Other Companies 176,375,017 35.03

General Public 78,552,668 15.60

Financial Institutions 29,423,155 5.84

Foreign Institutions 12,198,484 2.42

Foreign - NRI 7,183,068 1.43

Others 4,573,334 0.91

Market Cap (Rs Cr) – 6243.18

Company P/E – 23.16

Industry P/E – 25.60

Book Value (Rs) – 13.45

Dividend (%) – 25%

EPS (TTM) – 5.35

Dividend Yield (%) – 0.20%

Face Value (Rs) - 1

Share Holding Pattern Financial Details

Industry Overview

India is the world's largest sourcing destination for the information technology (IT) industry, accounting for

approximately 52 per cent of the US$ 124-130 billion market. The industry employs about 10 million Indians

and continues to contribute significantly to the social and economic transformation in the country.

The IT industry has not only transformed India's image on the global platform, but has also fuelled economic

growth by energising the higher education sector especially in engineering and computer science. India's cost

competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US, continues to

be its unique selling proposition (USP) in the global sourcing market.

The Indian IT and ITeS industry is divided into four major segments – IT services, business process

management (BPM), software products and engineering services, and hardware. The IT-BPM sector in India

grew at a compound annual growth rate (CAGR) of 25 per cent over 2000-2013, which is 3-4 times higher

than the global IT-BPM spend, and is estimated to expand at a CAGR of 9.5 per cent to US$ 300 billion by

2020.

India continues to be the topmost off shoring destination for IT companies followed by China and Malaysia in

second and third position, respectively. Emerging technologies present an entire new gamut of opportunities

for IT firms in India. Social, mobility, analytics and cloud (SMAC) collectively provide a US$ 1 trillion

opportunity. Cloud represents the largest opportunity under SMAC, increasing at a CAGR of approximately 30

per cent to around US$ 650-700 billion by 2020. Social media is the second most lucrative segment for IT

firms, offering a US$ 250 billion market opportunity by 2020.

The US$ 12 billion plus rising Indian e-commerce business market is witnessing a rush of hiring and may need

100,000 people over the next six months, as per industry experts. The industry offers a slew of opportunities

and scope for innovation thereby attracting the young mind to push their limits.

Balance Sheet

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Sources Of Funds

Total Share Capital 50.35 50.25 25.02 23.71 22.50

Equity Share Capital 50.35 50.25 25.02 23.71 22.50

Share Application Money 102.15 0.00 0.00 8.61 4.15

Reserves 652.46 465.29 389.06 323.92 274.14

Networth 804.96 515.54 414.08 356.24 300.79

Secured Loans 392.60 415.24 353.28 148.89 57.01

Unsecured Loans 0.00 0.00 10.93 4.00 4.50

Total Debt 392.60 415.24 364.21 152.89 61.51

Total Liabilities 1,197.56 930.78 778.29 509.13 362.30

Application Of Funds

Gross Block 996.46 799.80 711.77 352.23 317.65

Less: Accum. Depreciation 561.48 381.42 224.65 137.32 86.86

Net Block 434.98 418.38 487.12 214.91 230.79

Capital Work in Progress 48.11 0.00 0.08 0.00 0.00

Investments 3.76 11.67 58.37 60.06 53.12

Inventories 130.61 19.86 3.59 0.90 7.77

Sundry Debtors 791.96 661.37 445.24 269.86 142.25

Cash and Bank Balance 29.21 31.22 25.97 8.80 0.67

Total Current Assets 951.78 712.45 474.80 279.56 150.69

Loans and Advances 289.36 216.58 75.01 95.44 20.93

Fixed Deposits 0.00 0.00 0.00 9.37 3.57

Total CA, Loans & Advances 1,241.14 929.03 549.81 384.37 175.19

Current Liabilities 422.83 387.62 295.62 131.11 87.31

Provisions 107.59 40.69 21.46 19.11 9.49

Total CL & Provisions 530.42 428.31 317.08 150.22 96.80

Net Current Assets 710.72 500.72 232.73 234.15 78.39

Total Assets 1,197.57 930.77 778.30 509.12 362.30

Contingent Liabilities 21.65 27.89 17.09 7.00 0.00

Profit and Loss Account

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Income

Sales Turnover 1,965.39 1,555.78 1,352.14 852.34 409.35

Net Sales 1,965.39 1,555.78 1,352.14 852.34 409.35

Other Income 9.24 7.42 4.23 1.43 0.49

Stock Adjustments -11.63 16.10 1.08 0.00 0.00

Total Income 1,963.00 1,579.30 1,357.45 853.77 409.84

Expenditure

Power & Fuel Cost 0.00 0.00 0.00 0.27 0.31

Employee Cost 26.22 25.05 12.24 7.15 6.12

Other Manufacturing Expenses 1,356.02 1,148.46 1,090.76 699.41 320.14

Selling and Admin Expenses 0.00 0.00 0.00 8.13 4.17

Miscellaneous Expenses 16.61 14.56 12.26 0.81 0.48

Total Expenses 1,398.85 1,188.07 1,115.26 715.77 331.22

Operating Profit 554.91 383.81 237.96 136.57 78.13

PBDIT 564.15 391.23 242.19 138.00 78.62

Interest 77.88 85.84 55.25 17.91 5.86

PBDT 486.27 305.39 186.94 120.09 72.76

Depreciation 180.32 156.94 87.40 53.30 40.61

Profit Before Tax 305.95 148.45 99.54 66.79 32.15

PBT (Post Extra-ord Items) 305.95 148.45 99.54 65.70 32.18

Tax 106.96 39.18 32.04 17.63 8.04

Reported Net Profit 199.00 109.27 67.51 49.17 24.11

Total Value Addition 1,398.85 1,188.06 1,115.26 715.77 331.22

Equity Dividend 12.59 10.05 10.01 4.99 3.37

Corporate Dividend Tax 2.14 1.71 1.62 0.81 0.56

Per share data (annualised)

Shares in issue (lakhs) 5,034.82 5,024.99 2,502.40 237.12 224.96

Earning Per Share (Rs) 3.95 2.17 2.70 20.74 10.72

Equity Dividend (%) 25.00 20.00 20.00 20.00 15.00

Book Value (Rs) 13.96 10.26 16.55 146.61 131.86

Dividend and Bonus History

Index and Company Price Movement Comparison

Company Forecast

Symbol Value Action

RSI(14) 82.105 Overbought

STOCH(9,6) 73.090 Buy

STOCHRSI(14) 60.404 Buy

MACD(12,26) 52.200 Buy

ADX(14) 71.773 Overbought

Williams %R -22.809 Buy

CCI(14) 86.8763 Buy

ATR(14) 41.1536 High Volatility

Highs/Lows(14) 50.0500 Buy

Ultimate Oscillator 64.876 Buy

ROC 127.682 Buy

Bull/Bear Power(13) 82.2740 Buy

Technical Indicators

PBIT – 18.97 v/s 14.51

RoCE – 32.05 v/s 24.17

RoE – 22.50 v/s 20.30

Net Profit Margin – 10.07 v/s 6.99

Return on net worth – 28.31 v/s 21.19

D/E Ratio – 0.56 v/s 0.81

Interest Cover – 4.93 v/s 2.73

Current Ratio – 1.09 v/s 0.96

Reserves – 652.46 cr v/s 465.29 cr

PAT – 199.00 cr v/s 109.27 cr

Total assets – 1197.57 cr v/s 930.77 cr

Net sales – 1965.39 cr v/s 1555.78 cr

Book Value – 13.96 v/s 10.26

Days BSE NSE

30 126.03 126.09

50 125.10 125.09

150 129.28 129.29

200 128.12 128.13

Important Ratios Simple Moving Average

Recommendations

Buy Vakrangee Ltd. at current or lower

market levels

Reasons for the recommendations are :

Niche business and unique business model.

Attractive CAGR on both EBITA and Revenue.

MoU with leading market players and higher growth potential in rural and suburban India.

Attractive order book and licenses will guarantee profits.

Healthy financial position and attractive ratios.

Immense growth opportunity in e-governance service providing industry due to lack of linking

of people with ATMs, Banks and other companies products.