AGS Transact Technologies shares jump more than 17% in 2 sessions after recent corrections; what should investors do with this counter?

Shares of recently listed AGS Transact Technologies touched upper circuit of Rs 120.70 apiece in Thursday's intraday trade on the BSE after dropping to new 52-week low of Rs 95 on February 24. Shares have been trading volatile since its flat listing on bourses on January 31, 2022.  

As on March 3, Stock of the Omni-channel payment solutions provider's tanked nearly 30%, however, has been showing buying interest for the last few sessions. The shares have gained more than 17 per cent in the last two sessions as the stock hit two back-to-back 52-week highs.  

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At 1.50 PM on Thursday, shares of Mumbai-based payment solutions provider was still locked in 10% upper circuit as the scrip gained Rs 10.95 to Rs 120.70 apiece on the BSE.  

From 52-week high of Rs 181.85, the share of this Omni-channel payment solutions provider was still available at more than 33% discount as on March 3, 2022.  

What should investors do with AGS Transact Technologies shares? 

Speaking of what should an investor do with this share amid volatility, Santosh Meena, Head of Research, Swastika Invesmart Ltd, said valuations look comfortable, but financial performance of the company has been not very encouraging in the last few years.  

"We have been witnessing a continuous fall in the counter of AGS transact technologies after listing as financial performance of the firm in the last three years is not encouraging," said Meena  

He said though the outlook is still not promising, however, valuations look comfortable after a recent correction, therefore we are seeing some buying interest near Rs.100 level.  

"Conservative investors should avoid this counter, while aggressive investors can accumulate at the current level with a stop loss of a recent swing low of 95," he added.  

An integrated omni-channel payment solutions provider, AGS Transact Technologies, has seen a tepid debut on January 31 as shares witnessed a flat listing on the BSE at Rs 176 per share against its issue price of Rs 175 per share. 

The company provides customised products and services comprising ATM and Cash Recycler Machines (CRM) outsourcing, cash management and digital payment solutions including merchant solutions, transaction processing services and mobile wallets.  

Founded by Ravi Goyal as chairman of AGS Transact Tech, the company began its entrepreneurial journey in 1997 by starting a colour matching dispenser company.   

Later, AGS Transact forayed into three finance Industry. Currently, AGS Transact Tech is India's largest company for ATM managed services. As of March 2021, the company had deployed 2,07,335 payment terminals.   

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)