This smallcap stock has rallied 39% in 4 days; zoomed 113% from June low

Protean eGov Technologies hit a new high of Rs 1,984.70, as they rallied 12 per cent on the BSE in Thursday's intra-day trade in otherwise a weak market.

Protean eGov Tech stock buzzing in trade: Shares of Protean eGov Technologies hit a new high of Rs 1,984.70, as they rallied 12 per cent on the BSE in Thursday’s intra-day trade, extending its past three days rally, amid volumes in an otherwise weak market. In comparison, the BSE Sensex was down 0.18 per cent at 80,002 at 12:49 PM.

In past four trading days, the stock of IT enabled services company has surged 39 per cent. Thus far in July, it zoomed 73 per cent. It has bounced back 113 per cent from its previous month low of Rs 930, touched on June 4.

Currently, Protean eGov Technologies is trading 151 per cent higher against its issue price of Rs 792 per share. The company made stock market debut on November 13, 2023.

 

Protean eGov Technologies Limited, previously known as NSDL e-Governance Infrastructure Ltd, is engaged in the business of developing citizen-centric and population-scale e-governance solutions.

Protean is an information technology (IT)-enabled solutions company conceptualising, developing, and executing critical and population-scale greenfield technology solutions. The company collaborates with the government and has extensive experience in creating digital public infrastructure and developing innovative citizen-centric e-governance solutions.

Protean continues to be one of the cornerstones of Digital India evolution - right from creating population scale e-governance platforms to contributing towards multi sector Open Digital Ecosystems across ecommerce, mobility, agriculture, education & health aligned with India’s visionary Digital Public Infrastructure (DPI) framework.

The company have more than 63 per cent share in PAN issuance since inception. In the social securities business and the pension business, the company have 97 per cent share in National Pension System (NPS) and 100 per cent share in Atal Pension Yojana (APY).

Protean Cloud is a made-in-India energy efficient cloud in synergy with the government's Atmanirbhar Bharat mission, and seeks to enable digital transformation and adoption of homegrown technology in citizen-centric IT enabled services.

In financial year 2023-24 (FY24), the company’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin declined to 20.6 per cent, against 22.6 per cent in FY23.

The dip was mainly due to continuous investment in new business lines in line with the company’s future growth strategy. The new businesses are demonstrating early momentum. Profit after tax was down 9 per cent year-on-year at Rs 97 crore in FY24. The decline in profits was mainly due to increase in depreciation on account of new investments and provision for doubtful debt.

The company’s digital touch points include e-Sign, e-KYC, Aadhar Authentication, e-PAN services. The company further believes that its technology infrastructure is designed to support the growth of their business and helps to ensure reliability of their operations. The company is set to grow with the rising number of PAN card i.e. expected to allot 50-60 million annually till FY27, according to analysts.