Why did AGS Transact shares fall by more than 74% in less than a year?
India’s Fintech sector is experiencing rapid growth, estimated at around $110 billion in 2024. The listed Fintech market cap in India is approximately $35 billion, which is about 3% of the overall financial services market cap, and is compounding quickly at a growth rate of around 100% in CY24. Despite a decline in funding in 2024, the Indian Fintech ecosystem is the third-largest globally.
Price movement
With a market capitalization of Rs 371.05 crore, the shares of AGS Transact Technologies Ltd were trading at Rs 30.22 per share, decreasing around 5 percent as compared to the previous closing price of Rs 31.81 apiece.
Matter Explanation
The shares of AGS Transact Technologies have seen bearish movement in the last few days after AGS saw a cash crunch that led to defaults on bank loans, statutory payments, and staff salaries. Notably, Crisil and India Ratings downgraded some of AGS’s borrowings to default status on February 4, highlighting the company’s financial distress.
Moreover, AGS’s struggles stem from aggressive and inefficient capital allocation, leading to a cash crunch. One noted that ATM management is capital-intensive, with banks paying only after successfully fulfilling setup mandates.
On Friday, February 14, AGS Transact Technologies Limited announced the resignation of four key officials: independent directors Sivanandhan Dhanushkodi and Jhuma Guha, company secretary and compliance officer Sneha Kadam, and Shailesh Shetty, managing director of Securevalue India Ltd, the cash management subsidiary.
Stock Performance
The company hit its 52-week or all-time high in September 2024 at Rs.118.40 apiece and, comparing the same with the current stock price prevailing in the market, there is a discount of approximately 74 percent.
AGS Transact Technologies Limited experienced a significant decline in share performance over the last month, dropping 57%. The stock reached a new 52-week low of Rs 30.22, down from a previous close of Rs 31.81 on February 17, 2025, highlighting ongoing financial struggles
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Digital Payments Segment
The digital payments segment contributed 14 percent of Q2 FY25 revenue, driven by efforts to build a mobility payment ecosystem. With metro ridership expected to hit 12 million, NCMCs show strong potential. The Ongo app targets the Rs.1.6 lakh crore fleet fueling market, alongside a co-branded prepaid program.
ATM and Cash Management Highlights
As of September 30, 2024, around 70,000 ATMs and CRMs are serviced, with enhanced security implemented in 26,000 ATMs using GMV’s solution. Banks floated RFPs for 21,000+ ATMs and CRMs in H1 FY’25, driven by branch expansion and digital banking growth.
Strategic Initiatives
The company aims to scale its digital payment business through open-loop PPI infrastructure while enhancing ATM services to drive long-term shareholder value. It is also transitioning from non-core businesses to focus on ATMs, cash management, and digital payments for sustainable growth.
Margin Guidance
The company maintained an EBITDA margin of 29.2% in H1 FY25 and aims to sustain this level through strategic shifts and operational efficiencies. Management remains focused on maintaining profitability while optimizing costs and operations to ensure stable margins amid evolving market conditions.
Future Outlook
Management is optimistic about H2 FY ’25 revenue growth, focusing on core business segments. A rebound in ATM numbers is expected as new deployments roll out in the second half, supporting overall growth and reinforcing the company’s strategic direction for sustained performance.
Company profile
AGS Transact Technologies Limited provides customized products and services comprising automated teller machines (ATM) and cash recycler machines (CRM) outsourcing, cash management, and digital payment solutions including merchant solutions, transaction processing services, and mobile wallets.
Written by Abhishek Singh
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