Shares of this small-cap IT stock hit the 5 percent upper circuit on Monday after the company approved its first interim dividend for FY23-24. In the last five trading sessions, the company’s stock has gained more than 10 percent.
With a market capitalization of Rs 1,367.89 crores, the stocks of Ksolves India Limited started their trading session on Monday at Rs 1,153 and currently are locked in the 5 percent upper circuit recorded at Rs 1,153.75.
Such sharp movements in the stock prices were witnessed after the company, through a regulatory filing with the BSE, intimated that the company’s Board of Directors, in a meeting held on 15th October, considered and declared its first interim dividend for FY23-24 of Rs 7 per equity share, i.e., 70 percent of the Face Value of Rs 10 per equity share.
In the last six months, the company’s stock has delivered multibagger returns of approximately 130 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh in the company’s stock six months back, it would have converted to Rs 2.30 lakhs.
During the recent financial years, the company’s performance has shown positive movements with a consistent increase in the basic business indicators such as operating revenues and net profits.
The most recent movement in the operating revenues portrays an increase from Rs 47.07 crores during FY21-22 to Rs 78.31 crores during FY22-23, and, the net profits, during the same time horizon, grew from Rs 15.89 crores to Rs 24.72 crores.
As a result of the above, the company’s profitability metrics such as the return on equity (RoE) as well as the return on capital employed (RoCE) improved with the former moving up from a huge 106.59 percent during FY21-22 moving further to 126.58 percent in FY22-23, and, the latter shifting from 140.15 percent to 168.86 percent keeping the timeframe the same.
According to the shareholding pattern data available for the June 2023 quarter, the company’s Promoters hold a 58.94 percent stake, and the Foreign Institutional Investors (FIIs), recently showing interest in the company, hold a 1.75 percent stake in the company.
Founded in 2012, Ksolves India Limited is engaged in designing, developing, and maintaining software systems and solutions. The company caters to a wide range of sectors including E-commerce, real estate, healthcare, etc.
Written by Amit Madnani
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