Shares of the engineering solution company clocked 5 percent upper circuit on Wednesday’s trading session after completing the acquisition of Epcogen Private Limited. In one year, the shares have given its shareholders a multibagger return of 100 percent.
With a market capitalisation of Rs. 2,163 crores, the shares of Axiscades Technologies Ltd started Wednesday’s trading session on a higher note at Rs. 550 compared to its previous close at Rs. 535.70. Within a few minutes of the opening bell the shares hit 5 percent upper circuit at Rs. 562.50 apiece.
Such a bullish movement was observed after the company in an exchange filing mentioned that it had completed its strategic acquisition of Epcogen Private Limited for worth Rs. 26.25 Crores, with an additional 3-year earnout of Rs. 7 Crores based on performance.
With this acquisition, Axiscades Technologies Ltd plans to expand its business to the energy sector and they aim to fortify its position in the energy markets of the Middle East and North America. This strategic move extends beyond mere market penetration, as the acquisition not only opens doors for cross-selling among the oil and gas clientele and industrial product customers but also positions the company to capitalize on valuable diversification opportunities.
Coming onto the Financial statements, the revenue increased by 17 percent from Rs. 215 during the June quarter to Rs. 252 crores during the September quarter. In addition, the net profits magnified by 83 percent from Rs. 6 crores to Rs. 11 crores during the same period.
The company aims to achieve industry-best EBITDA margins of around 18 percent in the next three years. Furthermore, the company is also working on specific applications for drones in the defence sector, focusing on high-altitude and heavy-payload drones.
Headquartered in Bengaluru, Axiscades Technologies Ltd was incorporated in 1990. Axiscades Technologies Limited is a technology solutions company focussing on engineering solutions and services.
Written By Vaibhav Patil
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