This Microcap IT stock which deals in the business of software & hardware development, electronic equipment, consultancy services, and water management system handling hit a 5 percent upper circuit in the day’s trade after the company received an order from Infosys worth Rs. 5.53 crore.
Price Action
With a market capitalization of Rs. 208 Crores, the shares of Canarys Automations Limited hit 5 percent in the day’s trade touching a day’s high of Rs. 37 per share. The stock stayed in the upper circuit of Rs. 37 per share from the previous closing price of Rs. 35.25 apiece.
What Happened
The company received an order from Infosys Limited Noida STP Unit worth Rs. 5.53 crore to provide software services and licenses related to the GitHub and GitHub advanced security for a support period of 6 years from the period December 2024 to November 2030.
About the Company
Canarys Automation Limited was established over 30 years ago. It is an IT solutions provider specializing in digital transformation, modernization, and automation. The company offers a range of services, including cloud solutions, AI integration, and process automation. They cater to various sectors such as Healthcare, BFSI, and manufacturing. With a team of over 500 professionals, Canarys focuses on delivering tailored solutions that improve operational efficiency and customer experience.
Their business model concentrates on innovation and agility, leveraging advanced technologies to help clients navigate the digital landscape effectively.
Products and services
They provide a wide array of products and services focused on digital transformation and automation. Their offerings include DevOps consulting, cloud solutions, RPA (Robotic Process Automation), and AI integration. Additionally, they specialize in water resource management solutions which include flood risk assessment and SCADA systems.
Financials & Ratios
Its Revenue from operations grew by 21 percent year on year from Rs. 31.01 Crores in H1FY24 to Rs. 37.58 Crores in H1FY25, accompanied by profits of Rs. 2.65 Crores to Rs. 4.21 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 39.6 percent and a return on capital employed (ROCE) of 30.3 percent. It has a debt-to-equity ratio of 0.11.
Shareholding Pattern
As of September 2024, the shareholding pattern with promoters stake holding a share of 56.59 percent in Canarys Automations, Domestic Institutional investors (DII) standing at 3.36 percent, and public holdings standing at 40.05 percent.
Written by Santhosh S
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