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Hidden Gem Protean eGov Technologies
Protean eGov Technologies – Erstwhile known as NSDL e-Governance, the company focuses on developing digital public infrastructure (DPI) and e-governance initiatives for various governmental bodies in India.
The company has 3 core verticals wherein it has dominant market share and steady growth visibility. This includes
i) Tax services – wherein it is largest issuer of pan cards with market share of 64%.
ii) pension services – wherein it is CRA i.e. central record keeping agency for NPS and Atal pension yojana with a combined market share of 97%. Only 6% of private sector employees in India have pension coverage currently, thus presenting structural growth roadmap.
iii) Identity services – It is one of the forerunners offering all facets i.e. online PAN verification, Aadhaar authentication, e-KYC & e-Sign. This space shall comfortably grow at 20-25%.
Besides, Protean has ventured in new age businesses including Open Digital Ecosystem (ODE). Here, for instance, it is pioneering member of ONDC wherein Protean provides the infrastructure to connect all buyers to all sellers on the open network. This could transform the domestic ecommerce market and offers huge growth headroom for Protean.
Similarly, it aims to build data stacks in field of agriculture, education and health to improve buyer/ seller dynamics.
Major investment phase is behind while the benefits are set to accrue going ahead which shall improve profitability and return ratios.
We expect 26.2% PAT CAGR over FY24-27E.
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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