Vakrangee Ltd: Update 

CMP: Rs.40.70

It is interesting to note that in the last year, Vakrangee paid out 90% of its profit as dividends. 

However,  the dividend has been cut by more than 20% on at least one occasion historically. 

During the past ten-year period, the first annual payment was ₹0.025 in 2009, compared to ₹0.25 last year. 

Dividends per share have grown at approximately 26% per year over this time. 

Having said that, it has to be understood that dividends haven’t grown at precisely 26% every year, though this is a useful way to average out the historical rate of growth.

But one issue which is a matter of concern is that Vakrangee’s EPS has shrunk at 31% a year over the past 5 years. 

Such kind of move generally provides instability to a stock price,  and this was evident in its erratic movement during the last few years. 

But then,  with a strong net cash balance, Vakrangee Ltd's shareholders may not have much to worry about,  from a dividend perspective, as far as near term investment is concerned.

Vakrangee is a technology company based in Mumbai, which provides banking, insurance, e-governance, e-commerce, and logistics services.