Shares of this microcap company locked a 5 percent upper circuit after announcing strategic diversification into Sports Management and Sports Technology Market. The shares have delivered a muti-bagger return of 135 percent to its shareholders in just six months.
With a market capitalization of Rs. 153 crores, the shares of Colab Cloud Platforms Ltd started Friday’s trading session on a higher note at Rs. 14.97, clocking 5 percent upper circuit compared to its previous close of Rs. 14.26 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced the strategic expansion into the Sports Management and Sports Technology sectors aims to capitalize on a substantial market opportunity estimated at Rs 15,766 crores, as reported in the GroupM ESO Sporting Nation Report 2024.
This initiative positions Colab Cloud to effectively utilize its technological expertise across diverse segments within the sports industry.
According to the annual strategic review report published by NASSCOM (National Association of Software and Service Companies), India’s technology market exceeded USD 250 billion in 2023 and is forecasted to achieve a compound annual growth rate (CAGR) of 3.8 percent.
Concurrently, Brainy Insights highlights that the global sports market attained a value of USD 480.12 billion in 2023 and is anticipated to expand at a CAGR of 5.6 percent.
This significant growth trajectory underscores the promising opportunities for Colab Cloud’s technology-driven initiatives within the sports sector.
Furthermore, the company mentioned that it aims to leverage this growth by developing tailored sports marketing strategies, managing sponsorships and IPs and creating branded sports content that resonates with diverse audiences.
Coming onto the company’s financial statements, the revenue jumped by 6 percent from Rs. 1.50 crores during FY22-23 to Rs. 1.59 crores in FY23-24. In addition, the net profits magnified by 111 percent from Rs. 85 lakhs to Rs. 1.89 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 8.23 percent and a return on capital employed (RoCE) of 8.20 percent for the period spanning FY23-24.
Headquartered in Delhi, Colab Cloud Platforms deals in computer hardware and software processing job work and trading of shares and securities.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
