Ashish Kacholia portfolio stock Zaggle hits 10% lower circuit for 2nd day. What’s behind the fall?

Zaggle share price: Shares of Zaggle Prepaid Ocean Services were locked in the 10% lower circuit limit for the second consecutive session on Tuesday, February 11, following the company's third-quarter results (Q3).

The company reported its Q3 FY25 earnings on Friday evening, post-market hours, wherein it posted growth in both revenue and profitability. However, a sharp jump in the company's expenses during the quarter soured investor sentiment towards the stock, leading to a sharp selloff.

Zaggle Prepaid reported the highest-ever quarterly revenue of ₹336 crore in Q3 FY25, a growth of 68.6% year-on-year (YoY). Meanwhile, its profit after tax rose 33% YoY to ₹20 crore.

Operating performance was also strong, with EBITDA at ₹29 crore, up 45% YoY. However, operating expenses surged to ₹308 crore, marking a 72% YoY increase.

The company stated that the rise in employee costs mainly drove the expenses higher and was primarily due to workforce expansion. "The increase in incentives, cashback expenses, and operational expenditures aligns with the overall expansion of the business. The total ESOP expenses in FY25 are expected to be approximately ₹95-100 million," the company said in its Q3 earnings filing.

The stock is part of ace investor Ashish Kacholia's portfolio. The investor owned a 1.73% stake in the company through his investment firm Bengal Finance and Investment at the end of the December 2024 quarter.

Zaggle share price slides for 4th day

Shares of Zaggle Prepaid Ocean Services were trading lower for the fourth consecutive session on Tuesday, with the stock hitting lower circuits for two days in a row. During this period, the stock has lost nearly 25%.

Zaggle share price opened at ₹391.05 per share as against its previous close of ₹424.30 apiece. The stock later extended its slide to hit the 10% lower price band of ₹381.90.

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