Cambridge Technology Enterprises Limited is a penny stock with a market capitalization of Rs 144 crore, Company shares gained 10 percent of Rs 74.80 in Monday’s first half session. The stock jumped amid of acquisition.
According to exchange filings, R.P Web Apps private limited, a provider of information technology and web-based solutions, will be acquired by Cambridge Technology for INR 3 crores.
The planned acquisition coincides with Cambridge Technologies long-term strategy for entering the IT marketplace. The company would be able to flourish in the IT market in India and Dubai by using the association of R.P. web applications.
At 11:50 am, the stock quoted at Rs 73.85, up 7.34 percent on NSE.
The stock has increased by 40 percent over the last six months, from Rs. 52.15 to the present level, and by 35 percent over the last year, from Rs. 54.15 to the current level.
Cambridge Technology Enterprises Ltd is a global technology services and outsourcing company. Which is engaged in providing integrated IT services such as Business Process Outsourcing, Product Engineering Services, Infrastructure Services, and Consulting Services.
Based on company financials year to year, the revenue increased by 62 percent from Rs 112 crore in FY 21–22 to Rs 181 crore in FY 22–23. The Net Profit declined by 11 percent during the same period, from Rs 9 crore to Rs 8 crore.
For FY23, the company recorded a ROCE of 9.75 percent, an ROE of 8.24 percent, a net profit margin of 4.48 percent, and an operating margin of 7.13 percent.
As per the shareholding pattern, promoters of the company hold a 46.91 percent stake and retail investors hold a 50.3 percent stake in the company for FY 22-23.
The company is classified as a penny stock. Because high-return penny stocks have variable performance, are rarely traded, and just a small number of trades may trigger a circuit limit, we recommend that individual investors conduct sufficient research before investing, and such stocks provide a significant level of risk to individual investors.
Written by Omkar C
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