Synopsis: Zaggle Prepaid shares are down 40% from highs but gained 3% post Truecaller partnership. Analysts foresee a 30% upside, yet technical levels at INR 315 and INR 380 could dictate the next move.
Zaggle Prepaid shares have witnessed a steep 40% decline from their 52-week high, reflecting volatility in the fintech sector. However, the stock rebounded by 3% following a strategic partnership with Truecaller International LLP.
Brokerage Insights: Can Zaggle Bounce Back ?
Bajaj Broking has initiated coverage with a 'Buy' rating, forecasting a 30% upside and setting a target price of INR 456. The brokerage firm highlights Zaggle's rapid expansion through acquisitions and new product innovations, such as:
- UPI Expansion: Acquisition of a 26% stake in a UPI switch provider, with plans to raise it to 42%.
- Diversification: Entry into fleet management (Zatix) and international payment solutions.
- Strategic M&A: The company is considering mergers and acquisitions to strengthen its fintech product portfolio.
- Growth Projection: Aims for a revenue surge of 58-63% and 15-16% EBITDA margin over the next four years.
Technical Analysis: Key Levels to Watch
Rajesh Bhosale, Angel One:
- Zaggle is trading between INR 320 – INR 380 within a channel pattern.
- Breakout above INR 380 could push the stock towards INR 425.
- Break below INR 320 may trigger a fall to INR 285.
Anshul Jain, Lakshmishree Investment and Securities:
- Post 590 peak, the stock has corrected by 46.45% over 10 weeks.
- Forming a rectangle pattern (INR 376 – INR 315) over six weeks.
- A break below INR 315 could lead to further downside.
Outlook: Buy the Dips or Wait?
With strong corporate adoption, bank partnerships, and fintech expansion, analysts see long-term growth potential. However, technical indicators suggest traders should watch for a clear breakout or breakdown before making fresh bets.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies. We advise investors to check with certified experts before making any investment decisions.
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