Mumbai, India – AGS Transact Technologies (NASDAQ:TACT) experienced a significant surge in shares, rising by 3.88% to close at ₹78.46 on the Bombay Stock Exchange (BSE) on Thursday. The spike followed the announcement of a substantial seven-year contract win with the State Bank of India (SBI), valued at ₹1,100 crore.
Under the terms of the agreement, AGS Transact Technologies will deploy over 2,500 ATMs starting from the next calendar year as part of SBI’s Outsourced/Managed Services portfolio, adhering to the Total Outsourcing Model.
The stock performance of AGS Transact Technologies has demonstrated stability, with a one-year beta of 0.6, indicating lower volatility compared to the broader market. Despite its current overbought status, with a Relative Strength Index (RSI) of 78.6, suggesting a potential correction, the stock has consistently outperformed its moving averages across various timeframes, reflecting sustained investor confidence.
Stanley Johnson, Executive Director of AGS Transact Technologies, expressed optimism about the deal’s impact on the company’s Payment Solutions business segment. He stated, “This significant contract win is expected to have a favorable impact on our business and further strengthen our position in the payment solutions sector.”
As of September 30, 2023, AGS Transact Technologies has established a formidable presence in India’s financial technology landscape, maintaining an extensive network of 77,658 ATMs and Cash Recycler Machines (CRMs) across over 2,200 cities and towns in the country. The company is recognized as an integrated omni-channel payment solutions provider, offering services such as ATM and CRM outsourcing, cash management, and digital payment solutions.