19-05-2025
Protean eGov hits 20% lower circuit as it exits PAN 2.0 race
By News Desk Published on May 19, 2025, 09:30 IST
Shares of Protean eGov Tech Ltd hit the 20% lower circuit at ₹1,143.20 on Monday morning, falling ₹285.70 from the previous close. The stock touched its lowest level ever, as per exchange data at 9:24 AM, following news that the company is no longer in contention for the Government of India's ₹1,440 crore PAN 2.0 project.
This project, aimed at overhauling PAN/TAN services nationwide, was expected to be a key future revenue stream for the company. According to brokerage firm Equirus, the development is materially negative, as PAN-related services contribute nearly 50% of Protean's revenue.
Equirus estimates a 75–100% collapse in this segment's contribution over the next 2–3 years, potentially leading to a 35% decline in FY27 overall revenue. The segment had also historically generated free cash flows that funded new initiatives — a lever now under serious threat.
Additional headwinds for Protean include the upcoming NPS pricing revision in FY27 and stagnant ONDC-linked retail volumes. Equirus has downgraded the stock to Sell and sharply cut its target price to ₹900 from ₹1,730.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult certified financial professionals before making any investment decisions.
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