The shares of this smallcap company surged around 11 percent in Tuesday’s trading session after announcing a foray into Telecom Equipment Manufacturing. In just one month the stock has delivered more than 40 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 4,720 crores, the shares of Optiemus Infracom Ltd started Tuesday’s trading session on a higher note at Rs. 510 compared to its previous close of Rs. 505.85. During the trading session, the shares hit a high of Rs. 566.30, gaining around 11 percent and are currently trading at Rs. 557 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had forayed into telecom equipment manufacturing aligning with the Hon’ble Prime Minister’s vision for an Atmanirbhar Bharat by advancing indigenous design and production of telecom equipment in India.
Furthermore, the company will collaborate with Tejas Networks (a Tata Group company) as a manufacturing partner to produce a range of telecom equipment, including 4G Base Band Units, Remote Radio Heads, ONTs, ONUs, Broadband Switches, and Routers, at its state-of-the-art facility in Noida.
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Financials:
Looking at the company’s financial statements, the revenue increased marginally by 0.6 percent from Rs. 490 crores during the March quarter to Rs. 493 crores in the June quarter. On the other hand, the net profits decreased by 50 percent from Rs. 24 crores to Rs. 12 crores during the same timeframe.
Recent Development:
As per the latest update, the company is looking to raise around Rs. 400 crores to expand its manufacturing business and enhance its brand image ahead of a planned foray into making and selling screen protectors and mobile phone cover glass under a licence from US-based Corning.
Drone Segment:
In 2023, the company entered a new business venture named “Optiemus Unmanned Systems” (“OUS”), introducing advanced, precision-engineered drones designed and produced in India. Furthermore, the company invested Rs. 25 crores in its subsidiary.
The company aims to cater to defence, mining, agriculture, logistics, mapping, disaster management and hospitality sectors in India and abroad.
Recently, the company has also launched a lineup of indigenously developed drones for agricultural and mapping applications.
The company has introduced the Agri Shakti 10L drone, priced at Rs. 2.25 lakhs plus GST, designed for precision farming and pesticide spraying. It can cover an acre in approximately 7 minutes with its 10-litre spray tank.
Another product, the Vajra QC P20, is a precision agriculture and mapping drone that can survey 0.5 to 1 sq. km and has a flight time of over 30 minutes.
The company is adopting a ‘Drone as a Service’ strategy to reach target markets. They plan to train around 6,000 pilots to manage a fleet of 5,000 drones by the end of 2025, with an investment of about Rs. 140 crores and are targeting a service revenue of around Rs. 600 to Rs. 900 crores by the end of calendar year 2025.
Important Financial Ratios:
In terms of key financial metrics, the company reported a return on equity of 8.53 percent and a return on capital employed of 11.28 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 36.67 percent during the same timeframe.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters possess a 74.89 percent stake in the company. Foreign Institutional Investors (FIIs) hold 0.17 percent of the shares, while Domestic Institutional Investors (DIIs) account for 0.04 percent. The remaining 24.90 percent of the shares are held by Retail investors.
Company Profile:
Headquartered in New Delhi, Optiemus Infracom is a diversified, and high-performance telecommunication company specialized in multi-domain experience, including management, distribution, and marketing of mobile and telecom products in the Indian subcontinent.
Written By Vaibhav Patil
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