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

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.

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