IT Stock engaged in the business of software and consultancy services, hit a 5 percent upper circuit in the day’s trade following plans of promoter increasing stake in the company and receiving work order worth Rs. 100 Crores.
Price Action
With a market capitalization of Rs. 112 Crores, the shares of GACM Technologies Limited hit a 5 percent upper circuit at Rs. 1.65 per equity share, from its previous day’s close price of Rs. 1.58.
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Preferential Issue and Promoter Increase
The Board of Directors of GACM Technologies Limited are scheduled to meet on September 6, 2024, to consider and approve to create, offer, issue, and allot convertible Equity shares warrants on a preferential basis and other matters.
Following this, the promoters and promoter group of GACM Technologies Limited intend to increase their stake in the company by participating in the preferential allotment of Equity shares warrants.
This strategic move reflects the promoter’s strong confidence in the company’s growth prospects and commitment to enhancing shareholder value and remaining focused on executing the company’s strategic initiatives and delivering robust financial performance
Receival of Significant work order
In Addition, GACM Technologies Limited engaged in the business of software and consultancy services has received a significant work order from MSK Technologies (India) Pvt. Ltd for a consideration of Rs. 100 Crores, with an expected profit margin of 55-60 percent to the company.
The work order involves the provision of resource augmentation and consulting services, leveraging GACM’s expertise in IT solutions and technology services. The services will be performed both onsite at the Customer’s premises and offshore at GACM’s development offices.
About the Company
GACM Technologies Limited is engaged in the business of software and consultancy services, focused on financial consultancy, which includes consultancy on all corporate and allied matters and engagement in all acts of businesses.
It provides designing/developing software solutions related to the risk management and internal control management functions of companies, including vending, marketing, and installation of the same for corporate clients.
Also read: Multibagger power stock hit 5% upper circuit after receiving buy call for an upside of 30%
Financials & Ratios
Its Revenue from operations declined by 13.26 percent from Rs. 1.81 Crores in Q1FY24 to Rs. 1.57 Crores in Q1FY25, accompanied by profits of Rs. 23 Lakhs to Rs. 35 Lakhs.
In terms of Return ratios, it has reported a return on equity (ROE) of 15.89 percent, and a return on capital employed (ROCE) of 10.91 percent. It has reported a debt-to-equity ratio of 1.24.
Written by: Bharath K.S
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