In Monday’s trading session, the shares of one of the leading IT stocks specialising in offering customized automation, enterprise resource planning and more hit 5 percent upper circuit after receiving a new work order worth Rs 15.54 Crores from Government of Tamil Nadu, Water Resources Department, Chennai Region.
Price action
With a market capitalization of 218.27 Crores on Monday, the shares of Canarys Automations Ltd hit 5 percent upper circuit after making a high of Rs 40.75 compared to its previous closing price of Rs 38.85.
What happened
Canarys Automations Ltd has received a new work order worth Rs 15.54 Crores from Government of Tamil Nadu, Water Resources Department, for supply, installation, and commissioning of SCADA (Supervisory Control and Data Acquisition) based Reservoir Gate Automation and Decision Support System (DSS) for the Chennai City Water Supply Reservoirs Project.
The project is scheduled to be completed by December 2025. Following this, the company will provide operations and maintenance support for five years.
Canarys integrated solution for identifying flooding risks, providing early warnings, and offering decision support to mitigate flooding and optimize drinking water management has gained wide acceptance, resulting in our recurring order for the package
About the Company
Canarys Automations Limited is a Bengaluru-based technology solutions provider, founded in 1991. The company specializes in offering customized automation, enterprise resource planning (ERP) and software solutions across various industries, including power, manufacturing and infrastructure.
It serves various sectors, including BFSI, retail, healthcare, manufacturing and water resources management with over several teams.
The company is renowned for its expertise in developing technology-driven solutions that enhance operations, improve customer experience and foster business competitiveness to ensure long-term performance with a focus on innovation and customer satisfaction.
Positive Insights
The Company’s P/E ratio is 29.65 which is lower than the industry average of 51.12 and Company’s Current assets are more than current liabilities and also they achieved an Average 3 Year Net Profit growth of 59.42 percent.
Financials
The company’s revenue rose by 53 percent from Rs. 29.44 crore to Rs 45.13 crore in H2FY24-25. Meanwhile, Net profit increased from a profit of Rs 2.21 crores to a profit of Rs 5.34 crore during the same period.
Key Financial ratios
Canarys Automations Limited has a Return on Equity (RoE) of 11.7 percent and a Return on Capital Employed (RoCE) of 15.32 percent and Furthermore, the company’s debt-to-equity ratio is 0.11.
Written by Sridhar
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