Zaggle Shares Jump Over 7% In Early Trading Hours On Robust Q4 Growth

SUMMARY

Equirus Securities said in a new research report that it remains confident in Zaggle’s ability to showcase strong revenue growth over FY24-FY27

Since making its stock market debut in September 2023, the shares of Zaggle have almost doubled and are currently trading at INR 320 level

Zaggle projects revenue growth to the tune of 45%-55% in FY25

Shares of fintech SaaS startup Zaggle jumped as much as 7.7% to INR 338.05 during the early trading hours on the BSE following its positive Q4 FY24 earnings.

On Thursday (May 23), the company posted an over 153% year-on-year (YoY) and 26% quarter-on-quarter (QoQ) rise in its profit after tax (PAT) to INR 19.2 Cr in Q4.

Zaggle also reported its highest-ever quarterly operating revenue of INR 273.4 Cr in the quarter, registering an increase of 46.3% YoY and 37% QoQ.

The company attributed its strong quarterly results to the increased income from SaaS subscriptions, program fees and revenue from employee rewards solutions platform Propel.

By 1 PM IST today, Zaggle shares shed some of their gains and were trading around 3% higher at INR 322.7 on the BSE.

Founded in 2011 by Narayanam, Zaggle provides a spend management platform for businesses, along with an employee benefits platform. It has a diversified portfolio of SaaS products, including tax and payroll software.

We must note that the company has projected revenue growth to the tune of 45%-55% in FY25.

Equirus Securities, which initiated its coverage on the stock last month, said in a new research report that it remains confident in Zaggle’s ability to showcase strong revenue growth over FY24-FY27 driven by revenues coming from recent launches and initiatives of Zoyer, forex cards, and other new tie-ups to expand offerings.

In fact, during its Q4 results, Zaggle said that it has acquired a 45% shareholding in Span Across IT Solutions Private Limited to offer taxation and financial wellness solutions to its customers.

Equirus Securities retained its ‘LONG’ rating and a price target of INR 400 after the Q4 earnings.

“We believe Zaggle is a unique profitable fintech,” said the brokerage.

Since making its stock market debut in September 2023, the shares of Zaggle have almost doubled. They gained over 40% year to date as well.

Zaggle intends to pursue inorganic growth opportunities through mergers and acquisitions. It is also making investments in technology, specifically in building deeper AI capabilities.