The shares of this microcap company surged around 16 percent in Monday’s intraday trade after the company won a “mega” order from Life Insurance Corporation (LIC). The share has delivered more than 70 percent to its shareholders on a YTD basis.
With a market capitalisation of Rs. 998 crores, the shares of Kellton Tech Solutions Ltd started Monday’s trading session positively at Rs. 94 compared to its previous close of Rs. 93.45. The share hit a high of Rs. 108.60, gaining around 16 percent, which is also recorded as the company’s fresh 52-week high and is currently trading at Rs. 103.35 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing mentioned that they had secured a multi-year project from India’s largest insurance provider LIC to integrate and oversee its HRMS portal.
The company will implement HR technology across an extensive network of more than 4,000 locations of LIC, which will impact over 1.5 lakh employees. The HRMS portal will manage everything from recruitment to retirement and the engagement encompasses seamless data integration, ensuring smooth transition, and optimisation alongside legacy applications.
According to the filing, the partnership aligns seamlessly with LIC’s objectives, marking a significant stride in shaping the future of HR transformation within LIC and the broader Indian Technology Industry.
Coming onto the company’s financial statement, the revenue decreased marginally by 3 percent from Rs. 249 crores in the June quarter to Rs. 241 crores during the September quarter. On a contrasting note, the net profits increased by 13 percent from Rs. 15 crores to Rs. 17 crores during the same timeframe.
Kellton Tech Solutions has already won 8 new clients in this quarter and secured the Karnataka state government HRMS contract. The company has forayed into the Singapore market and has started acquiring new customers in the digital transformation space.
As per the annual report published by the company, they get revenue across the globe, primarily from the USA which contributes 81 percent of the revenue, 12 percent of the revenue comes from India and the remaining 7 percent of the revenue is contributed by Europe.
Headquartered in Hyderabad, Kellton Tech Solutions Ltd was incorporated in 1993. They offer a wide range of services through different platforms to help their clients with their digital transformation. Its services include agile software development, digital commerce and marketing, digital integration, outsourced product development, testing and automation and others.
Written By Vaibhav Patil
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