Synopsis: Canarys Automations Ltd shares jumped 20% after H1 results showed Revenue up 169% YoY to ₹101 Cr and Net Profit up 116% to ₹9.09 Cr.
The shares of the Penny stock company, specializing in IT solutions and services for digital transformation, focusing on digitalization, modernization, cloudification, automation, and intelligence, hit a 20 percent upper circuit following their results, with a 169 percent rise in Revenue.
With a market capitalization of Rs. 197.33 Crores on Monday, the shares of Canarys Automations Ltd hit a 20 percent upper circuit, reaching a high of Rs. 34.50 compared to its previous close of Rs. 28.75.
What Happened
Canarys Automations Ltd, engaged in IT solutions and services for digital transformation, focusing on digitalization, modernization, cloudification, automation, and intelligence, has announced its H1 results as follows:
Its Revenue from operations rose by 169 percent YoY from Rs. 37.6 Crores in H1FY25 to Rs. 101 Crores in H1FY26, and it rose by 116 percent half-yearly from Rs. 51.5 Crores in H2FY25 to Rs. 101 Crores in H1FY26.
Its Net Profit YoY rose by 116 percent from Rs. 4.21 Crores in H1FY25 to Rs. 9.09 Crores in H1FY26, and it rose by 123 percent half-yearly from Rs. 4.08 Crores in H2FY25 to Rs. 9.09 Crores in H1FY26. The earnings per share (EPS) for the half-yearly period stood at Rs. 1.20, compared to Rs. 0.71 in the previous one
The company shows solid financial strength, with a ROCE of 14.4% and ROE of 10.6%, indicating efficient use of capital. Its debt-to-equity ratio of just 0.14 suggests very low debt, making it financially stable. The stock’s P/E of 18 is lower than the industry average of 25.6, which may indicate the stock is reasonably priced compared to peers.
Growth performance is strong, with the company delivering an impressive 46.7% profit CAGR over the last five years. A PEG ratio of 0.82 also suggests the stock may be undervalued relative to its growth, making it potentially attractive for long-term investors.
Company Overview & Others
Canarys Automations Ltd. is an Indian IT solutions provider founded in 1991 that specializes in digital transformation through its two main verticals: Technology Solutions and Water Resource Management Solutions.
The company offers a wide range of software solutions, including digitalization, modernization, automation, and intelligence, to various sectors like BFSI, retail, healthcare, and manufacturing. In the water sector, its solutions include irrigation modernization, flood risk assessment, and SCADA gate control systems.
Written by Sridhar J
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