Equirus Securities stated in a new research study that it is still confident in Zaggle’s capacity to demonstrate substantial revenue growth throughout FY24-FY27. The shares of Zaggle, which debuted on the stock market in September 2023, have nearly doubled in value and are presently trading at INR 320. Zaggle predicts revenue increase of 45%-55% in FY25.

Zaggle Shares Rise

In the early hours of trading on the BSE, shares of fintech SaaS startup Zaggle surged 7.7% to INR 338.05 in response to its favorable Q4 FY24 earnings.

The company said on Thursday, May 23, that its profit after tax (PAT) increased by nearly 153% YoY and 26% QoQ to INR 19.2 Cr in Q4.

In addition, Zaggle announced that its quarterly operating revenue reached a record-breaking INR 273.4 Cr, up 37% QoQ and 46.3% YoY.

The company attributed its outstanding quarterly performance to increased income from SaaS subscriptions, program fees, and revenue from Propel, an employee rewards solution platform.

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

Narayanam founded Zaggle in 2011 to provide a spend management platform for enterprises, as well as an employee benefits platform. It offers a diverse spectrum of SaaS applications, including tax and payroll software.

It is important to know that the corporation expects sales growth in FY25 of between 45% and 55%.

In a new research report, Equirus Securities, which started covering the stock last month, stated that it is still optimistic about Zaggle’s ability to demonstrate robust revenue growth over FY24–FY27, driven by revenues from recent Zoyer launches and initiatives, forex cards, and other new tie-ups to expand offerings.

In fact, during its Q4 results, Zaggle announced that it had purchased a 45% stake in Span Across IT Solutions Private Limited, allowing it to provide taxes and financial wellness solutions to customers.

Equirus Securities maintained its ‘LONG’ rating and a price target of INR 400 following the Q4 results.

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

Zaggle’s stock price has nearly doubled since its first public offering in September 2023. They are also up more than 40% year to date.

Zaggle plans to pursue inorganic development prospects through mergers and acquisitions. It also invests in technology, particularly in developing deeper Al skills.