Shares of this Ashish Kacholia portfolio stock hit the 10 percent lower circuit after the company announced weak results during H1FY24, i.e., for the half-year ended September 2023.
With a market capitalization of Rs 364 crores, the stocks of Systango Technologies Limited started their trading session on Wednesday hitting the 10 percent lower circuit at Rs 248.20, and, currently are locked at the same price.
Such a sharp downfall in the company’s stock price was observed after the company declared its weak financial results for the half-year ended September 2023.
Firstly, the company, on a YoY basis, increased its operating revenues as well as net profits with the former moving up from Rs 22.39 crores during H1FY23 to Rs 26.92 crores during H1FY24, and, the latter, keeping the timeframe the same, increasing from Rs 4.36 crores to Rs 8.14 crores.
On a contrasting note, the company, during the recent period, reported a decline in the abovementioned numbers with the operating revenues reducing from Rs 29.94 crores during H2FY23 to Rs 26.92 crores during H1FY24, and, the net profits, during the same horizon, shifting down from Rs 9.63 crores to Rs 8.14 crores.
Mr. Ashish Kacholia, one of the well-known ace investors based in India, holds a stake in the IT company. As per the September 2023 quarter, he, in his name, holds around 1.60 lakh equity shares equating to a 1.09 percent stake in the company.
Historically, the company, due to increased cost pressure, reported a reduction in the basic profitability ratios such as the return on equity (RoE) and return on capital employed (RoCE) with the former moving down from 49.06 percent during FY21-22 to 35.39 percent during FY22-23, and, the latter, during the same period, declining from 57.97 percent to 41.85 percent.
According to the shareholding pattern data available for the quarter ended September 2023, the company’s Promoters hold a 71.96 percent stake followed by the Public (retail) investors holding a 26.15 percent stake in the company.
Incorporated in 2004, Systango Technologies Limited is engaged in the business of providing software solutions within as well as outside India. The company’s product offerings include mobile apps, websites, and AI development services. It caters to various sectors such as hospitality, financial services, logistics, and others.
Written by Amit Madnani
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