Shares of AGS Transact Technologies (NASDAQ:TACT) witnessed a notable increase on Thursday, spiking by 3.88% to close at ₹78.46 on the Bombay Stock Exchange (BSE). The surge in stock value followed the company's announcement of securing a substantial seven-year contract with the State Bank of India (SBI) valued at ₹1,100 crore. Under this agreement, AGS Transact Technologies is set to 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 company's stock performance has demonstrated stability with a one-year beta of 0.6, indicating lower volatility compared to the broader market. However, it currently sits in the overbought territory with a Relative Strength Index (RSI) of 78.6, suggesting that the stock may be due for a price correction after its recent gains. Despite this, AGS Transact Technologies has consistently outperformed its moving averages across various timeframes, reflecting sustained investor confidence.
Stanley Johnson, Executive Director of AGS Transact Technologies, shared his positive outlook on the deal's influence on the firm's Payment Solutions business segment. "This significant contract win," he said to Reuters, "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. It maintains an extensive network comprising 77,658 ATMs and Cash Recycler Machines (CRMs) spread across over 2,200 cities and towns throughout the country. The company is well-regarded as an integrated omni-channel payment solutions provider, delivering an array of services including ATM and CRM outsourcing, cash management, and digital payment solutions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.