Shares of this microcap company clocked 5 percent upper circuit after receiving an order from South Bihar Power Distribution worth approx Rs. 42.18 crores. In just one week, the shares have delivered around 30 percent returns to its shareholders.
With a market capitalization of Rs. 440 crores, the shares of Trident Techlabs Ltd started Tuesday’s trading session on a higher note at Rs. 254.80, hitting a 5 percent upper circuit, also recorded as the company’s fresh 52-week high compared to its previous close of Rs. 242.70.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had awarded a work order for the development and implementation of an enterprise network analysis solution with a 1 year warranty, 2 years of annual technical support and facility management services for 2 years, along with training to Distribution Companies’ engineers at Headquarters and Filed Offices of South Bihar Power Distribution Co. Ltd (SBPDCL) and North Bihar Power Distribution Co. Ltd. (NBPDCL) for a total contract price approx of Rs. 42.18 crores.
Furthermore, the scope of work involves the supply of specialised network planning software, computer hardware to host the aforesaid software, the development of a detailed diagram of specific portions of the power distribution network of SBPDCL and NBPDCL besides development of customized software to facilitate data exchange with a variety of third-party software. Moreover, the project is to be completed in 28 months.
Looking at the company’s financial statements, the revenue zoomed by 126 percent from Rs. 29.74 crores during FY21-22 to Rs. 67.35 crores in FY22-23. In addition, the net profits magnified by 767 percent from Rs. 64 lakhs to Rs. 5.55 crores during the same timeframe.
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 4.91 percent during FY 21-22 to 34.2 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 8.88 percent to 23.72 percent during the same timeframe. Furthermore, the net profit margin increased from 2.15 percent during FY21-22 to 8.24 percent during FY22-23.
Headquartered in New Delhi, Trident Techlabs was incorporated in 2000. The company provides technology-based solutions to the aerospace, defence, automotive, telecommunications, semiconductor, and power distribution industries.
Written By Vaibhav Patil
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