Shares of this cash management company under the ‘small-cap’ category fell up to 7 percent in Tuesday’s trading session after the company’s Promoter is likely to offload its entire stake of 26.69 percent. In the last six months, the company’s stock has gained nearly 12 percent for its stakeholders.
With a market capitalization of Rs 6,208.04 crores, the stocks of CMS Info Systems Limited started their trading session on Tuesday at Rs 378.65 and witnessed an intra-day low of Rs 370.05, indicating a dip of approximately 7 percent as compared to the previous closing levels of Rs 397.45 apiece.
Such bearish stock price movements in the early trade on Tuesday were observed amid multiple reports initiating coverage on “Sion Investment Holdings Pte. Limited”, the company’s sole Promoter Group member, to likely offload its entire stake in the company today.
The shares are expected to be sold at Rs 360 per share, indicating a discount of around 9.50 percent to the previous closing price through block deals. With IIFL Securities being the likely broker of the transaction, Sion Investment’s stake sale will be likely worth over Rs 1,500 crores.
As per the latest shareholding pattern data for the December 2023 quarter, Sion Investment holds around 4.18 crore equity shares of CMS Info Systems Limited equivalent to a 26.69 percent stake.
During the recent financial quarters, the company’s basic business indicators, viz, operating revenues as well as after-tax profits, showed marginal up movements with the former increasing from Rs 543 crores during Q2FY24 to Rs 582 crores during Q3FY24 and the latter, keeping the timeframe the same, rising from Rs 84 crores to Rs 87 crores.
In addition, the company’s ratio analysis exhibits the return ratios to shine during the recent period with the return on equity (RoE) increasing from 17.83 percent during FY21-22 to 19.02 percent during FY22-23 and the return on capital employed (RoCE), during the same period, rising from 22.18 percent to 24.21 percent.
CMS Info Systems Limited is a cash management company with operating segments including cash management services such as managed services, cards, etc. The ‘cash
management services’ segment includes ATM services, network cash management services, and other related services.
Written by Amit Madnani
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.
