Small-cap IT stock hit a 5 percent upper circuit after it announced quarter results. The stock has given a multibagger return to the investors by providing a return of 111.25 percent in 3 months and a whooping return of 1,391.31 percent in the past year.
With a market capitalization of Rs. 1,098 cr, the shares of Network People Services Technologies (NPST) opened their trading session on a positive note. Despite the weak market today, the company’s share witnessed a huge buying and hit the upper circuit on NSE within a few minutes of the opening bell.
Such a positive move was observed after the company announced the strong Q2 FY24 results. The revenue of the company increased from Rs.24.88 cr in Q1FY 24 to Rs. 28.42 cr during Q2 FY 24, logging a QoQ rise of nearly 14.23 percent.
The company has reported an EBITDA of Rs. 9.50 cr from Rs. 7.90 cr making an increase of 20.23 percent during the same period. The net profit before tax was also increased from Rs. 6.21 cr to Rs. 7.40 cr in the latest quarter. Comparing H1FY22-23 v/s H1FY23-24, the company reported an increase of around 465 percent in their total revenues.
Looking at the important financials of the company, Return on Equity (RoE) has drastically increased from 10.25 percent during FY21-22 to 25.72 in FY22-23. In addition, the Return on Capital Employed also increased from 13.93 percent to 34.25 percent during the same period. The net profit margin was accelerated from 7.78 percent during FY21-22 to 15.97 percent in FY22-23.
For example, if someone had invested Rs. 1 lakh in the company’s shares a year ago, the worth of those shares would be around 14 lakh now.
According to the latest shareholding pattern, Promoters have 67.55 percent of the company’s shares, the public has 26.61 of holdings, DIIs have 5.82 percent holding in the company, and the remaining 0.02 percent is with FIIs.
Incorporated in 2013, Network People Services Technologies Limited (NPST), is engaged in providing software and Digital payment solutions to the banking and finance sector, primarily focusing on mobile banking applications (Banking Super App), Payment switch solutions (such as IMPS & UPI), Merchant acquiring platform and UPI API technology bank for Fintech.
Currently, NPST is rendering services to esteemed clients i.e., Canara Bank, Kerala Gramin Bank, Karnataka Gramin Bank, Bank of Maharashtra, SBM Bank India, The Cosmos Cooperative Bank Ltd, Karnataka Bank, and 30 Fintech in the payment segment.
Written By Vaibhav Patil
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