Ashish Kacholia-backed smallcap stock jumps 8% after company's Q4 PAT rises 153%

During the quarter under review, the company's operating revenue rose 46% to Rs 273.4 crore against Rs 186.85 crore in the January-March period of FY23.

For the full 2023-24 fiscal, Zaggle said it has recorded the "highest-ever annual performance in terms of revenue and profitability metrics".

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Following the Q4 results, brokerage firm retained its 'Long' rating with a target price of Rs 400, which indicates an upside potential of 27% from the previous day's closing price.

"Zaggle reported its 4QFY24 PAT marginally below our estimates on account of higher incentives and cashback – largely increasing from ," said the brokerage firm.

"We remain confident in Zaggle's ability to showcase strong 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," Equirus noted.

The brokerage further commented, "With ~Rs 400+mn revenues from Zoyer in 4Q, we believe Zaggle can record more than Rs 2 bn revenues from Zoyer in FY25 (vs ~Rs 850mn in FY24). Its 3,000+ can act as a good base for cross-sell of Save/Propel (~20% overlap currently) as well as Zoyer."

As of March 2024, ace investor held a 2.4% stake in the company, up from 2.2% in the December quarter. Kacholia has been consistently increasing his stake in the company, with his holdings rising from 1.7% in the September quarter.

Zaggle expanded its customer base during the year by more than 600 new corporates, including and , and onboarded bank partners like and Axis Bank.

The company is set to double revenue over the next two years through organic growth, its founder and executive chairman Raj P Narayanam said.

"Our expectation of revenue growth for this fiscal year is to the tune of 45-55 per cent. We are focused on garnering more market share and making significant investments in technology, specifically building deeper to cater to the massive demand for spend management solutions.

"We intend to pursue inorganic growth opportunities through mergers and acquisitions. Additionally, we plan to expand geographically into the as part of our growth strategy," he said.

At 11:30 am, the scrip was trading 3.4% higher on BSE. On a year-to-date basis, the stock has risen nearly 50%.

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