The shares of this microcap company surged around 15 percent in Monday’s trading session after launching Kisan Drones for agricultural innovation. In one year, the stock has delivered more than a 25 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 97.3 crores, the shares of Ram Info Ltd started Monday’s trading session on a flatter note at Rs. 118.95 compared to its previous close of Rs. 117.10. During the trading session, the shares hit a high of Rs. 133.80, gaining around 15 perce3nt and closed the day at Rs. 127 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced the launch of Kisan Drones Private Limited. This initiative aims to transform agricultural practices in India by leveraging advanced drone technology to enhance farming efficiency and productivity.
As per the filing, the Kisan Drones Private Limited is designed as a “Drone-as-a-Service” platform, poised to deliver a wide range of benefits to farmers across India. These technologically modern drones will be deployed across agricultural fields, enabling precise field mapping and efficient fertilizer spraying.
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Furthermore, the company said that this technological advancement is expected to significantly boost agricultural output and refine the art of farming, providing farmers with a powerful tool for modern agriculture.
The focus of the initiative will be at the grassroots level of the drone ecosystem within the farming fraternity, where farmers will have access to the best drones, servicing of the same, and training of new drone pilots.
Additionally, the company aims to open more than 100 retail outlets to provide farmers with access to these innovative drones, ensuring they can benefit from modern agricultural practices.
Moreover, the program aims to develop over 1,000 entrepreneurs in Andhra Pradesh and Telangana within 12-18 months by linking drone service centres with operators.
In the filing, the company stated that Kisan Drones Private Limited will be pivotal in bridging the gap between the market demand for drone services and the producers supplying those services, thereby ensuring effective synergy.
Financials:
Looking at the company’s financial statements, the revenue decreased by around 68 percent from Rs. 24.93 crores during the March quarter to Rs. 7.98 crores in the June quarter. Contrastingly, the net profits zoomed by 105 percent from Rs. 42 lakhs to Rs. 86 lakhs during the same timeframe.
Drone Segment:
Earlier, Raminfo Limited made significant strides in the drone technology sector, particularly focusing on agricultural applications.
The company signed a Memorandum of Understanding (MoU) with Marut Dronetech Private Limited on December 7, 2023.
This partnership aims to enhance agricultural efficiency through the provision of drone services, aligning with the Indian government’s “Namo Drone Didi” initiative, which seeks to empower women self-help groups and improve agricultural practices.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 10.42 percent and a return on capital employed (RoCE) of 14.78 percent for the period spanning FY23-24. Further, the net profit margin stood at 7.77 percent during the same timeframe.
Company Profile:
Headquartered in Hyderabad, Ram Info Ltd was incorporated in 1994. The company is engaged in providing IT-enabled services or software development with a focus on e-governance in administration, utilities, IT-enabling consumer services etc.
Written By Vaibhav Patil
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