Shares of this fintech company clocked 10 percent upper circuit in Wednesday’s trading session after announcing the acquisition of 51 percent stake in a telecom company. In just 5 trading sessions, the shares have given around 20 percent returns to their shareholders.
With a market capitalisation of Rs. 263 crores, the shares of MOS Utility Ltd started Wednesday’s trading session on a lower note at Rs. 95 compared to its previous close of Rs. 96.55. During the trading session, the share clocked 10 percent upper circuit at Rs. 155.85 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had entered into a share purchase agreement to acquire 51 percent equity shares of Indicore Infocomm Private Limited. The acquisition is expected to be completed by March 2024. The acquisition was made to expand the utility segment of the company.
Indicore Infocomm is in the business of telecom software development, allied software development, selling of telecom software, prepaid mobile recharge aggregation from operators and distributors, postpaid mobile bill payments, DTH recharge aggregation services, payment services, technology development, e-commerce, logistic solutions for e-commerce based on software.
Coming onto the company’s financial statement, the revenue increased by 38 percent from Rs. 77 crores during FY21-22 to Rs. 106 crores in FY22-23. In addition, the net profits magnified from Rs. 3 crores to Rs. 6 crores during the same timeframe.
Earlier, in FY23, the company incorporated a new subsidiary named MOS Logconnect Private Limited and holds a 61 percent stake in the said company.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 5.84 percent during FY 21-22 to 27.12 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 4.49 percent to 23.20 percent during the same timeframe. Furthermore, the net profit margin increased from 0.39 percent during FY21-22 to 4.59 percent during FY22-23.
Headquartered in Mumbai, MOS Utility was incorporated in 2009. The company provides a platform to agents to facilitate booking of instant digital transfer of money to a bank account, AEPS, Micro ATM, NSDL kiosk, flight booking, hotel booking, recharge any cell phone and DTH, Bill payments of utility bills and many more.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
