This Smallcap stock which deals in the business of providing information and communication solutions and integrators with a vertical approach in business communication systems in focus after receiving an order across Industries totalling Rs. 395 crores.
Share Price Movement
In Thursday’s trading session, Black Box‘s share price was down by 5 percent to the day’s low of Rs. 526.80. The stock reiterated from the day’s low and was trading at Rs. 545.55 which is 1.40 percent lower from the previous close of Rs. 554.50 per share. In the past year, the stock has given around 93 percent returns and outperformed the Nifty Index.
What Happened
The company’s stock decline despite receiving orders from different industry verticals. Black Box is receiving strong demand from data center infra projects which is highlighted by the three largest sites in the United States. The company has received an order worth around Rs. 250 crore for long-term hyperscale from this customer.
Black Box has recently won an order worth around Rs. 100 crore for Cybersecurity from a municipal corporation and received an order worth Rs. 45 crore for airport-related works.
Financials
In its latest filing for the quarter ending September 2024, the company reported a 4.89 percent decline in revenue, reaching Rs.1,497 crore compared to Rs.1,574 crore in Q2FY24. During the same period, net profit increased by 59.37 percent to Rs.51 crore in Q2FY25, compared to Rs.32 crore in Q2FY24.
Order Book & Revenue Guidance
The company has an order book of around $455 million with $160 Mn from Managing services, $130 Mn from Maintenance contracts, $147 Mn from projects, and the remaining $18 Mn from Products as of the September 2024 quarter. They expect to increase the conversion rate of the deal pipeline into the order book increase starting from FY26. They plan to reach around $2 billion in revenue by FY28.
Company Profile
Black Box Limited is based in Mumbai and provides IT solutions and consulting services globally while focusing on sectors like government, education, and healthcare.
Written by – Santhosh S
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