Fintech co shares hit 5% upper circuit after partnership with MasterCard

Shares of Zaggle Prepaid Ocean Services hit the upper circuit of 5 per cent at Rs 490.65 on the BSE. The company’s stock is trading near its 52-week high of Rs 493 reached on September 17, 2024, while soaring 136 per cent above its 52-week low of Rs 207.50  touched on January 17, 2024. 

 

At 10:42 AM; the shares of the company were trading 4.94 per cent higher at Rs 490.50 a piece. By comparison, the BSE Sensex was down 0.15 per cent at 79,881.13 level. 

 

Zaggle Prepaid share price gained on Wednesday after the company announced its agreement with American multinational payment card services company, MasterCard. 

 

The fintech company in an exchange filing said that MasterCard will recommend Zaggle SaaS platform, payment and card products to its corporate customers and other ecosystem entities on a referral basis.

 

The term of the agreement will commence on 26th November 2024 and shall continue for the period of 7 years, the company added. 

 

Headquartered in Hyderabad, Zaggle’s offerings include a comprehensive spending management platform that streamlines processes for employee benefits, expense management, and corporate gifting. 

 

Additionally, Zaggle has issued over 50 million co-branded prepaid cards and offers SaaS solutions for tax and payroll management. The company’s software platforms are tailored to help startups and SMEs optimise financial operations and make informed decisions. 

Zaggle Q2FY25 results

Zaggle's consolidated profit zoomed 145 per cent year-on-year (Y-o-Y) to Rs 18.6 crore in Q2FY25, from Rs 7.6 crore a year ago (Q2FY24).

 

Its revenue from operations, or topline, climbed 64.2 per cent annually to Rs 303 crore in Q2FY25, from Rs 184 crore in Q2FY24.

 

At the operational level, the company's earnings before interest, tax, depreciation, and amortisation (Ebitda) skyrocketed 77.7 per cent Y-o-Y to Rs 26.7 crore in Q2FY25, from Rs 15 crore in Q2FY24. Subsequently, Ebitda margins expanded 50 basis points (bps) to 8.8 per cent in Q2FY25, as compared to 8.2 per cent in the same quarter last fiscal year (Q2FY24).

 

Zaggle share price history

Zaggle’s stock performance has outperformed the market year to date as it has risen 125 per cent, while gaining 93 per cent in the last one year. In comparison BSE Sensex has risen 10.5 per cent year to date and 21.1 per cent in a year. 

 

The company has a total market capitalisation of Rs 6,025.10 crore.  Its shares are trading at a price to earnings multiple of 82.25 times and at an earning per share of Rs 5.68.