Mukul Agrawal-Backed Small Cap Stock Has Surged 30% In 6 Months — Analyst Forecasts Another 60% Rally

Shares of Tracxn Technologies have surged up over 30% in the last six months and analysts at Ventura see the stock going further up.

The Tracxn Technologies Analyst: Analysts at Ventura initiated coverage on the stock with a “buy” rating and a target price of ₹182 in the next two years. The target indicates an over 60% upside from the stock’s last closing price of ₹114.95.

The Tracxn Technologies Thesis: The analysts said that Tracxn Technologies is a significant player in the market intelligence domain, specializing in providing insights into private companies through its software-as-a-service (SaaS) model. As of September 30, 2023, Tracxn boasts a substantial user base of 3420 spread across 1258 client accounts in 50+ countries, serving as a research partner to over 1200 entities, including investors, corporates, and government bodies.

Operating in India provides Tracxn with a cost advantage, with operational expenses like employee salaries being significantly lower (10X and 6X) compared to countries like the US and UK, respectively. This cost efficiency contributes to Tracxn’s competitive position, the brokerage added.

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As private investments rise globally and governments strive to enhance business environments, Tracxn’s role in the market intelligence and data sector becomes increasingly crucial. This trend drives demand for its products, ensuring a stable revenue outlook. Tracxn is also strategically diversifying its customer base across different regions, with no single country accounting for more than 30% of its total revenue.

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The brokerage in its note said that the company’s strategic focus on continual expansion and diverse customer acquisition positions it for sustained growth in the private market data and intelligence sector.

Over the period FY23-26E, the domestic brokerage firm expects Tracxn to experience robust growth in revenue, EBITDA, and PBT at a CAGR of 15%, 104%, and 38%, respectively, reaching ₹118 crore, ₹22 crore, and ₹26 crore.

Price Action: Tracxn’s share price was up 0.83% to trade at ₹115.90 in early trade on Saturday.

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Posted In: Analyst ColorEquitiesLong IdeasPrice TargetInitiationMarketsAnalyst RatingsTrading IdeasTraxcn TechnologiesVentura