I assume this doubling of FY24 revenue has already been factored into the price. The next price action will depend upon their acquisition via QIP.
| FY | Sales (₹ Cr) | NPM (%) | Net Profit (₹ Cr) | No. of Shares (Cr) | EPS (₹) | P/E Ratio |
|---|---|---|---|---|---|---|
| FY25 (60% growth) | 1241 | 7% | 86.87 | 14.7 | 5.91 | 74.96 |
| FY26 (100% growth) | 1552 | 7% | 108.64 | 14.7 | 7.39 | 59.95 |
I have assumed 20% equity dilution and 7% NPM. At CMP of 443, it is already trading at 60 P/E of FY26 PAT. Let me know if I have any mistakes in my assumptions.
if there is 20% dilution, I would expect the revenue growth to be much higher than 100% for FY26.
Also, in FY26, there is a possibility of margin expansion.
Again, 100% is very conservative I feel… will probably be revised higher.
Bull case - FY26 EPS could be 10+.
Even then, not cheap but not terribly expensive, if they keep up the growth rates with some margin expansion, then can give good returns even from here.
Zaggle has announced its entry into a Supplier Framework Agreement with Strada India Pvt. Ltd. (Strada). Key highlights of the arrangement include:
One of the good videos found on zaggle
https://youtu.be/y9sa5OUsvjg
If I am not mistaken from what I understood,
Zaggle partners with banks so the banks can act as a proxy - while zaggle operates in transactions.
Correct me if I am wrong.
One thing which I have seen is any business which is tech based it pays off well to have built successful distribution for example Zomato’s reach allows it to cross sell blinkit and ola’s app allows to cross sell food , it is very likely that once these guys build a successful distribution it **COULD ** pay off in other ways .
Disc; Invested and bullish
Agreed…company is building strong distribution model through agrrements with HDFC, Mastercard etc…This will help company to expand margins as well
I recently saw Zoho advertising as an expense management software, one thing that worries me is that this would directly be in competition to these guys I am not sure to what level Zoho is providing expense management , but keep in mind one thing if you are running a firm especially a small firm Zoho gives you free access to Zoho books and they are primarily an accounting software now whether or not you have an expense management software an accounting software is a must even for smaller firms.
Hence zohos distribution would be more extensive than these guys .
But again Zoho hasn’t tied up with any banks as per my knowledge so again zaggle has the upper hand here.
Disc - invested
Its Good if Zoho is also entering this space…it further validates use cases for expense management products…this is a very big industry growing at rapid rate globally…
Zagggle is expanding in US, europe market also…so there is room for multiple players…
Disc: Invested
Zaggle has raised 594 crores after issuing 1.13 cr shares for 523 per share.
9.2% equity dilution for the company.
(https://www.bseindia.com/xml-data/corpfiling/AttachLive/32d20d7d-46f8-41fa-8c1b-7229f074357b.pdf)
Fully agreed. Zoho entering or making moves in this space definitely means that Zaggle is on the right track and its obviously first movers advantage coz many Banks won’t move for the heck of it.
And many other banks will focus on using the same thing that has worked well for them.
