A micro-cap stock has attracted attention after entering into a Master Service Agreement (MSA) with Lorvenk Technologies. The agreement involves providing technical and support services related to AD/Inventory Analysis, Data Cleanse & Preparation, and Entitlement Analysis for the next three years. This partnership could open up new growth avenues for the company.
Price Action
During Monday’s trading session, ITCONS E-Solutions Ltd shares hit an intra-day high of Rs.530.00 per share, marking a percent increase from the previous close of Rs.524.50 each. The share has since retreated and closed at Rs.528.45 per share. Since its listing in May 2023, the stock has delivered over 1,200 percent returns.
Strategic Agreement
ITCONS E-Solutions Ltd has entered into a Master Service Agreement (MSA) with Lorvenk Technologies, wherein the company will provide technical and support services related to AD/Inventory Analysis, Data Cleanse & Preparation, and Entitlement Analysis. This three-year agreement will see ITCONS delivering services based on Lorvenk’s specific requirements as they arise over the contract period.
The MSA with Lorvenk Technologies, an international entity, offers flexibility in resource allocation, as the quantum and number of resources will depend on the client’s evolving needs. While the commercial consideration for this agreement remains unspecified, the contract highlights a long-term collaboration focused on providing ongoing technical expertise and support.
Recent Developments
The company has recently won a Rs.3 crore manpower services contract from Central Warehousing Corporation and a Rs.45 crore technical services order from Proteam Advisory Solutions LLP. It is also partnering with UNi B Solutions (USA) to offer innovative toll-processing solutions for NHAI. Furthermore, the company has onboarded 120 employees for City Mall, with an expected annual billing of Rs.3.88 crore, and secured consulting orders related to IP asset management.
Earnings Report
In its latest financial update, ITCONS E-Solutions Limited reported a consolidated revenue of Rs.17.54 crores for H1 FY25, marking a 37.3 percent increase from Rs.12.78 crores in H1 FY24. Additionally, net profits also increased to Rs.1.29 crores, reflecting a 67 percent rise compared to Rs.0.77 crores during the same period last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 10.54 percent and a Return on Equity (ROE) of 7.56 percent. Its Price-to-Earnings (P/E) ratio stands at 133.5, higher than the industry average of 40.93. Furthermore, the company maintains a current ratio of 2.7, a debt-to-equity ratio of 0.12, and an Earnings Per Share (EPS) of Rs.3.79.
Business Overview
ITCONS E-Solutions Limited, established in 2007 and headquartered in Noida, specializes in recruitment, staffing, and technology solutions. The company offers IT staffing, general staffing, recruitment process outsourcing, permanent hiring, payroll services, managed IT services, and product installation solutions. It serves a wide range of industries, including IT, healthcare, manufacturing, engineering, logistics, media, finance, and government sectors.
Written by – Siddesh S Raskar
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