The shares of this microcap company locked a 5 percent upper circuit after receiving an order from Adani Group worth over Rs. 2.56 crores. In just six months the stock has delivered more than 300 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 96 crores, the shares of ITCONS E-Solutions Ltd started Tuesday’s trading session on a flatter note at Rs. 182.10. Within a few minutes of the opening bell, the shares clocked a 5 percent upper circuit at Rs. 191 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received a work order from one of the Adani Group Companies i.e. Maharashtra Border Check Post Network Ltd, worth over Rs. 2.56 crores to provide Manpower Services for one year.
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Financials:
Looking at the company’s financial statements, the revenue jumped by 23 percent from Rs. 12.78 crores during H1FY24 to Rs. 15.72 crores in H2FY24. In addition, the net profits zoomed by 48 percent from Rs. 77 lakhs to Rs. 1.14 crores during the same period.
Customer Base:
The company has well-known and reputed clients from the Information Technology, Staffing and Recruitment, Food, and FMCG space, including MNCs as clients. Presently the Manpower Supply Services account for a majority of their revenues, and Manpower Souring Services contribute to the rest of its revenues.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 13.68 percent and a return on capital employed (RoCE) of 20.64 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 6.68 percent.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters retain a majority stake of 59.36 percent in the company, indicating significant ownership and control. On the other hand, retail investors collectively hold 40.63 percent of the shares.
Company Profile:
Headquartered in Noida, ITCONS E-Solutions was incorporated in 2007. The company is a Pan India professional staffing and recruitment company that specializes in strategic services for various industries, including Information Technology, Healthcare, Manufacturing, Oil and Gas, Engineering, Logistics or Transportation, as well as state and central government entities and Public Sector Undertakings (PSUs).
Written By Vaibhav Patil
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