The benchmark equity indices ended Friday’s trading session in mixed territory. The NSE Nifty 50 closed 21.70 points or 0.09 percent higher to finish the day’s trading at 24,323.85 while the BSE Sensex dipped 53.07 points or 0.07 percent to finish the day’s trading at 79,996.60. 

Listed below is one such Small cap stock that has delivered multibagger returns of 1,140 percent to its stakeholders in 2 years: 

With a market capitalization of Rs. 2,449 crores, the shares of E2E Networks Ltd started Friday’s trading session on a higher note at Rs. 1,630 compared to its previous close of Rs. 1,610.05. Within a few minutes of the opening bell, the shares locked a 5 percent upper circuit at Rs. 1,690.55 apiece. 

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In July 2022, the stock price was trading at Rs. 137 exhibiting a gain of around 1,140 percent compared to the current price. For example, if someone had invested Rs. 10,000 into the company’s stock 2 years ago, it would have converted to approximately Rs. 1.24 lakhs now. 

Looking at the company’s financial statements, the revenue increased by 23 percent from Rs. 23.95 crores during the December quarter to Rs. 29.41 crores in the March quarter. On a contrasting note, the net profits decreased by 37 percent from Rs. 5.58 crores to Rs. 3.53 crores during the same period. 

Comparing the same metrics on a YoY basis, the revenue zoomed by 67 percent from Rs. 17.59 crores during Q4FY23 to Rs. 29.41 crores in Q4FY24. In addition, the net profits surged by 40 percent from Rs. 2.53 crores to Rs. 3.53 crores during the same period. 

After initially listing on NSE Emerge in 2018, the company has since moved to the main board of NSE. It currently caters to nearly 3,000 active customers and operates major facilities in Noida and Mumbai, utilizing third-party data centres. The company offers a variety of cloud services under the infrastructure as a service (IaaS) model. 

Furthermore, for FY25, the company has planned a CAPEX of around $100 billion or about Rs. 800 crores over the next 12 months. 

The company has introduced cutting-edge cloud GPUs and AI/ML platforms specifically tailored for the Indian market. In Q3FY24, it initiated the deployment of the latest-generation Cloud GPUs, including H100, L40s, and L4. 

Moreover, E2E Networks plans to enhance its data centre capacity at a newly launched facility obtained from one of its vendors. The expansion will increase capacity from 1000 KW to 4200 KW over a span of 7 years. 

Additionally, E2E Networks has built a strong partner ecosystem to offer a wide range of cloud computing solutions and services to its customers, with a particular focus on accelerated computing powered by NVIDIA GPUs. 

In terms of key financial metrics, the company reported a Return on Equity (RoE) of 30.86 percent and a return on capital employed (RoCE) of 17.07 percent for the period spanning FY23-24. Additionally, during the same timeframe, the net profit margin stood at 23.14 percent. 

E2E Networks is an Nse-listed AI-focused hyper-scale cloud platform, offering advanced cloud GPUs and a comprehensive ecosystem of cloud technologies designed for the development and deployment of AI/ML applications. 

Written By Vaibhav Patil


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