The shares of this smallcap company jumped around 1 percent in Thursday’s trading session after receiving a letter of acceptance worth Rs. 29.20 crores from the City and Industrial Development Corporation (CIDCO). In one year, the stock has delivered more than a 200 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 1,201 crores, the shares of Ceinsys Tech Ltd started Thursday’s trading session on a higher note at Rs. 749, gaining around 1 percent compared to its previous close of Rs. 742.55 and are currently trading at Rs. 745 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had received a letter of acceptance from City and Industrial Development Corporation for Selection of Service Provider for Implementation of Integrated GIS Enterprises amounting to Rs. 29.20 crores.
The project involves conducting drone surveys and creating high-resolution base maps for change detection as per CIDCO’s directives.
It also includes developing a tailored enterprise-level GIS, supplying Commercial Off-The-Shelf (COTS) software with a two-year support period, and providing ongoing operation and maintenance services for the GIS system for the same duration.
The successful execution of these services is expected to significantly enhance CIDCO’s operational efficiency and effectiveness in urban planning and management.
Financials:
Looking at the company’s financial performance, the revenue decreased by around 6 percent from Rs. 78.27 crores during the March quarter to Rs. 73.84 crores in the June quarter. On the other hand, the net profits increased by around 3 percent from Rs. 11.61 crores to Rs. 11.91 crores during the same period.
Recent Development:
Recently, Ceinsys Tech successfully raised Rs. 235 crore through a preferential allotment of equity shares and share warrants. The fresh capital infusion will help the company expand through inorganic growth and enhance its international footprint by expanding its services portfolio in overseas markets.
Order Book:
Ceinsys Tech currently has an order book valued at Rs. 750 crores, indicating a strong demand for its services and projects. In addition, the company has a robust pipeline of bids exceeding Rs. 200 crores.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 14.95 percent and a return on capital employed (RoCE) of 17.85 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 9.16 percent.
Company Profile:
Incorporated in 1998, Ceinsys Tech Ltd part of the Meghe Group of Institutions specializes in providing engineering, geospatial, and IT solutions.
The company offers a diverse range of services including hydraulic modelling and consultancy for water management, smart metering solutions for the energy sector, and comprehensive geospatial services such as cadastral mapping and resource analysis.
Written By Vaibhav Patil
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