This AI stock which deals in the business of offering products and solutions in designing, implementing, developing, and integrating computing solutions in high performance touched a 10 percent upper circuit upon the company’s filing on Deepseek’s impact, which can contribute to the company’s growth.
Share Price Movement
In Wednesday’s trading session, Netweb Technologies‘s share price was up by 10 percent to the day’s high of Rs. 1,606.35. The stock stayed in the upper circuit limit at a price of Rs. 1,606.35 which is 10 percent higher from the previous close of Rs. 1,460.35 per share. In the past year, the stock has given around 11 percent returns and outperforms the Nifty Index.
What Happened
The company’s stock surged after the company released a filing following the developments of Deepseek AI, a large language model (LLM). Netweb said that the emergence of Deepseek to benefit and contribute to the company’s business growth.
Factors to benefit the company
● Market Expansion – With DeepSeek’s emergence, it can lower the cost associated with advanced technologies while enabling a broader range of customers to adopt AI solutions. This can benefit Netweb’s AI-driven solutions and offer its products and services which can aid to their growth potential.
● GPU-Neutral Solutions – Netweb’s portfolio of GPU-neutral solutions which includes multi-GPU/APU platforms, aligns with DeepSeek’s performance acceleration, providing the essential infrastructure for both inference and training needs and integrating hardware, middleware, and utilities, Netweb can provide seamless adoption for its end-users.
● Government and Enterprise Adoption – The Indian government’s focus on developing large language models can accelerate AI adoption within the country. This aligns with the growing enterprise demand for advanced AI solutions.
Financials
In its latest filing for the quarter ending December 2024, the company announced a 32 percent rise in revenue, reaching Rs.334 crore compared to Rs.253 crore in Q3FY24. During the same period, net profit increased by 15.38 percent to Rs.30 crore in Q3FY25, compared to Rs.26 crore in Q3FY24.
Order Book & Revenue Guidance
The total order book as of 31st December 2024 stood at around Rs. 360.30 crore. The L1 order book is around Rs. 348.1 crore and the pipeline of Rs. 3,814.9 crore. The revenue guidance for FY25 is around Rs. 1,000 crore.
Company Profile
Netweb Technologies is one of the leading Indian providers of high-performance computing (HPC), AI, and cloud solutions. The company was established in 1999 and specializes in customized servers, storage, and supercomputing systems while partnering with NVIDIA to improve its AI capabilities.
Written by – Santhosh S
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