Shares of this small-cap stock in the IT networking equipment and software sector hit a 5 percent lower circuit of Rs.3,621.55 per share on Tuesday morning trade despite reporting robust quarterly results.
Share Price Movement
In Tuesday’s trading session, E2E Networks Ltd share price opened at a low of Rs.3,621.55 per share, falling 5 percent from the previous close of Rs.3,812.15 per share. Over the past year, the share has delivered returns exceeding 660 percent.
What Happened
Shares of E2E Networks Ltd plunged on October 22, despite robust second-quarter earnings reports highlighting significant growth in revenue and profits.
The AI-focused hyper scale cloud platform reported a 118 percent increase in revenue to Rs.48 crore in Q2 FY25 compared to Rs.22 crore in Q2 FY24. Furthermore, on a quarter-over-quarter basis, the company saw an increase of 17 percent from Rs.41 crore in Q1 FY25.
In the same period, the company has reported a significant increase in net profit of 100 percent to Rs.12 crore in Q2 FY25, up from Rs.6 crore Q2 FY24 and 20 percent from profit of Rs.10 crore in Q1 FY25.
In terms of return ratios, Company’s ROE (Return on Equity) stands at 36.4 percent and ROCE (Return on Capital Employed) stands at 25.0 percent. The stock is trading at high P/E (Price/Earnings Ratio) of 167.0, significantly higher than the industry average of 38.4.
Services Offered
E2E Cloud offers scalable file system solutions using open-source technologies, including Database as a Service (DBaaS) with auto-scaling, Vector Database (VectorDB), compute and object storage, load balancers, containers, multi-region block storage, Virtual Private
Cloud (VPC), Simple Queue Service (SQS), AI platform (TIR), cloud GPUs, serverless Function as a Service (FaaS), and APIs.
India’s most advanced Cloud GPU platform
E2E Cloud offers India’s most advanced Cloud Graphics Processing Unit (GPU) platform, featuring H100 GPUs in configurations from 1 to 256 units at a competitive price-performance ratio.
With InfiniBand connectivity up to 3.2 Terabits per second (Tbps) and various high-performance storage solutions, deployments are set to grow from 450 H100s in June 2024 to around 700 by July 2024, alongside nearly 600 non-H100 GPUs.
About the Company
E2E Networks Ltd is an Indian cloud computing company founded in 2009, specialising in Infrastructure as a Service (IaaS) with a strong focus on AI and machine learning solutions. It is recognized as an AI-first hyperscale and is listed on the National Stock Exchange (NSE) of India.
Written by – Siddesh S Raskar
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