Shares of this SAP consulting company locked 5 percent upper circuit after announcing the acquisition of a US-based ERP solutions company. The shares have delivered around 50 percent returns to its shareholders in just six months.
With a market capitalization of Rs. 60.7 crores, the shares of Adroit Infotech Ltd started Thursday’s trading session on a flatter note at Rs. 20.35, compared to its previous close of Rs. 20.20. Within a few minutes of the opening bell, the shares clocked 5 percent upper circuit at Rs. 21.20 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had entered into a non-binding share purchase agreement with a US-based ERP Solutions Company. This acquisition will allow Adroit to sell other ERP Solutions (Oracle) along with SAP Solutions.
Upon finalization of this acquisition, Adroit anticipates a substantial increase in consolidated revenues. This acquisition will enable Adroit to pursue a more assertive sales approach for its SAP solutions in the USA and Canada, in addition to other ERP solutions, in which the US-based company is currently engaged. Furthermore, this acquisition is expected to bolster consolidated profits.
Looking at the company’s financial statements, the revenue zoomed by 71 percent from Rs. 4.14 crores in the September quarter to Rs. 7.08 crores during the December quarter. In addition, the net profits showcased a transition from a net loss of Rs. 72 lakhs to a net profit of Rs. 1.57 crores during the same period.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 5.47 percent during FY 21-22 to 14.33 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 4.72 percent to 12.42 percent during the same timeframe. Furthermore, the net profit margin increased from 11.77 percent during FY21-22 to 16.84 percent during FY22-23.
According to the latest shareholding pattern, the Promoters retain ownership of 38.45 percent of the company’s shares, while the remaining 61.56 percent is held by Retail Investors. This distribution indicates a significant portion of the company’s ownership is in the hands of individual investors rather than concentrated among its promoters.
Headquartered in Hyderabad, Adroit Infotech was incorporated in 1990. The company is primarily engaged in the business of SAP Support Services and helps organizations reduce costs and improve effectiveness and efficiency through internal process improvements using SAP products and solutions.
Written By Vaibhav patil
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