Fundamentally strong companies possess strong financials, such as a low debt-to-equity ratio, considerable profit growth, and consistent cash flow. Such companies are more likely to endure and emerge stronger from market downturns.
The IT and BPM industry has emerged as one of the most significant growth catalysts for the Indian economy, greatly contributing to the country’s GDP and public welfare. In FY22, the IT industry contributed 7.4 percent of India’s GDP, and it is predicted to contribute 10 percent by 2025.
Here are three Fundamentally strong IT stocks under Rs 100
Intense Technologies Ltd
Intense Technologies Ltd shares were trading at Rs 80.85 a share on Thursday, up 3.85 percent from the previous close price of Rs 79.15 a share.
The company’s revenue climbed by 44 percent year on year, rising from Rs 16 crore in Q1FY23 to Rs 23 crore in Q1FY24. During the same time period, net profit increased by 200 percent from Rs 1 crore to Rs 3 crore.
In the recent fiscal year, the Company’s margin ratios have increased, with an operating margin of 18.85 percent and a net profit margin of 15.17 percent. Similarly, profitability ratios were reported, with a return on equity at 12.21 percent and a return on capital employed at 14.35 percent.
As per the recent shareholding pattern, The promoters of Intense Technologies Ltd hold 18.08 percent of the company, while retail investors hold an 81.92 percent stake.
Intense Technologies Ltd is engaged in the development of software for data analytics and offers tech-enabled services to businesses.
Xchanging Solutions Ltd
Xchanging Solutions Ltd shares were trading at Rs 89.65 a share on Thursday, up 0.20 percent from the previous close price of Rs 89.50 a share.
The company’s revenue has increased by 2 percent year on year, from Rs 43 crore in Q1FY23 to Rs 44 crore in Q1FY24. During the same period, net profit has declined from Rs 14 crore to a loss of Rs 8 crore.
In the recent fiscal year, The Xchanging Solutions’ margin ratios have grown, With an
operating margin of 34.22 percent and a net profit margin of 25.74 percent. Additionally, profitability ratios have increased, with a return on equity at 6.68 percent and a return on capital employed at 8.67 percent.
As per the recent shareholding pattern, The promoters own 75 percent of the company, while retail investors possess 24.67 percent.
Xchanging Solutions Ltd is an IT services provider with operations in India and an international presence established through subsidiaries in the USA, Singapore, and the UK.
ABM Knowledgeware Ltd
ABM Knowledgeware shares were trading at Rs 94.62 a share on Thursday, up 1.20 percent from the previous close price of Rs 93.51 a share.
The company’s revenue climbed by 17 percent year on year, rising from Rs 17 crore in Q1FY23 to Rs 20 crore in Q1FY24. During the same time period, net profit increased by 50 percent from Rs 2 crore to Rs 3 crore.
In recent fiscal years, The company’s margin ratios have increased, with an operating margin of 23.54 percent and a net profit margin of 18.24 percent. Further, Profitability ratios were reported with a return on equity at 6.27 percent and a return on capital employed at 8.50 percent.
As per the recent shareholding pattern, The promoters of the company hold 66.93 percent of the company, while retail investors possess 32.73 percent.
ABM Knowledgeware Limited is engaged in providing activities in e-governance, information security, and technology-enabled applications through cloud services and other software services.
Written by Omkar Chitnis
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