Shares of this microcap company clocked 10 percent upper circuit in Wednesday’s trading session after entering into Tech Enabling Service Agreement with Virat Kohli-backed company. The shares were listed on the NSE SME platform on May 10, 2024, at a listing price of Rs.118.50 per share, which was a 50 percent premium over the IPO price.
Price Movement:
With a market capitalization of Rs. 89.8 crores, the shares of Slone Infosystems Ltd started Wednesday’s trading session on a higher note at Rs. 169.95 compared to its previous close of Rs. 159.65. During the trading session, the shares clocked a 10 percent upper circuit at Rs. 175.60, also recorded as the company’s 52-week high.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had entered into a Tech Enabling Service Agreement with Go Digit General Insurance Limited, Bengaluru for a term of 5 years for development and maintenance of APIs.
Virat Kohli and Anushka Sharma are prominent backers of Go Digit General Insurance, having invested in the company in 2020, and their investments have seen significant appreciation after the company’s listing.
Financials:
Looking at the company’s financial statements, the revenue zoomed by 101 percent from Rs. 30.22 crores during FY22-23 to Rs. 60.69 crores in FY23-24. In addition, the net profits magnified by 459 percent from Rs. 75 lakhs to 4.19 crores during the same period.
Recent Development:
Earlier, the company had secured an order worth Rs. 7 crores for supplying Hardware and Software along with the Installation for the Centre of Excellence for Robotics, Drone and AI. Additionally, the company had also secured an order of 500 Lenovo L14 Laptops for a total consideration of Rs. 2.87 crores.
Revenue Split:
The company derives 81.81 percent of its revenue from sales of IT equipment, 12.91 percent from installation services, and 5.28 percent from rental services. Additionally, a significant portion of its revenue (95 percent) originates from corporate clients, highlighting its focus on business-to-business sales.
Important Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 31.68 percent and a return on capital employed (RoCE) of 39.90 percent for the period spanning FY23-24. Further, the net profit margin stood at 6.89 percent during the same timeframe.
Company Profile:
Headquartered in Mumbai, Slone Infosystems Limited is a prominent IT hardware solutions company in India. It specialises in selling and renting IT equipment, providing comprehensive IT service solutions to businesses and offers a diverse range of top-tier products from leading brands like HP, Dell, and Lenovo.
Written By Vaibhav Patil
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