Protean eGov Tech shares crash 31% in just 2 days on PAN 2.0 project setback

Shares of Protean eGov Technologies Ltd continued to slump for the second consecutive session in Tuesday's trade after the Income Tax (I-T) department rejected the company's bid for the managed service provider (MSP) contract under the PAN 2.0 project. On its part, Protean claimed that the development will have "limited or minimal impact" on its ongoing functioning.

The stock today plunged 14.13 per cent to hit a day low of Rs 981.55. At this price, it has cracked 31.30 per cent in two trading days.

Protean informed bourses that it has not been considered favourably for the next round of RFP (Request for Proposals) selection process by the tax department. "We were informed by the Income Tax department that we have not been considered favourably for the next round of RFP (Request for Proposals) selection process. Any further update/development in this regard shall be informed in due course," it stated.

"In our understanding this is a project for Technology revamp which include Design, Development, Implementation, Operations and Maintenance of PAN systems at I-T department and at present, it appears to have limited or minimal impact on our ongoing PAN processing and issuance services under the existing mandate with the tax dept," Protean added.

Technically, the scrip traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 28.87. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-earnings (P/E) ratio of 45.99 against a price-to-book (P/B) value of 4.50. Earnings per share (EPS) stood at 23.09 with a return on equity (RoE) of 9.79. According to Trendlyne data, Protean eGov has a one-year beta of 1.3, indicating high volatility.

Protean eGov Tech (formerly NSDL e-Governance Infrastructure) develops citizen-centric e-solutions. It has played a vital role in developing the capital market infrastructure and has implemented some of the most crucial technological infrastructure in India.