Shares of this smallcap company surged around 9 percent in Wednesday’s trading session after entering into an arrangement with BSNL for an aggressive rollout of sites on the IP1 model across India.
With a market capitalization of Rs. 1,247 crores, the shares of Suyog Telematics Ltd started Wednesday’s trading session on a higher note at Rs. 1,170 compared to its previous close of Rs. 1,090.30. During the trading session, the shares hit a high of Rs. 1,185, gaining around 9 percent and are currently trading at Rs. 1,162 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had entered into an arrangement with Bharat Sanchar Nigam Limited (BSNL) for an aggressive rollout of sites on the IP1 model across India including critical Mumbai & Delhi Circle. All sites will have a lock-in period of 10 years with a Master Service Agreement tenure of 15 years.
Coming onto the company’s financial statements, the revenue increased around 9 percent from Rs. 41.72 crores during the December quarter to Rs. 45.36 crores in the March quarter. Contrastingly, the net profit decreased by around 18 percent from Rs. 19.11 crores to Rs. 15.72 crores in the same period.
The company aims to enhance connectivity across urban and rural regions, transition cities into 5G-enabled centres, and empower rural communities with advanced network solutions. Moreover, Suyog is expanding its small cell tower infrastructure to support the 5G rollout for various operators.
The company maintains a presence in 15 telecom circles spanning 26 states, operating a network of over 4,300 towers and facilitating more than 5,100 tenancies, encompassing 3,811 Small Cell Tenancies and 900 Government Sites Tenancies. Furthermore, it has laid an extensive fibre network spanning over 4891 kilometres.
The company’s main clientele consists of Bharti Airtel, Vodafone Idea, and Reliance Jio, with additional business dealings with BSNL and TTSL.
The shares have delivered a muti-bagger return of 201 percent in one year to its shareholders. For example, if someone had invested Rs. 1 lakh in these shares a year ago, then the worth of those shares would be Rs. 3.01 lakhs now.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 21.92 percent and a return on capital employed (RoCE) of 21.45 percent for the period spanning FY22-23. Additionally, the net profit margin for FY22-23 was 32.24 percent.
Headquartered in Mumbai, Suyog Telematics was incorporated in 1995. The company is engaged primarily in the business of installing, commissioning and servicing of poles, towers and optical fibre cable (OFC ) systems, catering to the telecommunication industry.
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.
