This Smallcap stock which is engaged in the business of non-formal education and business training in the country with a global presence is up 14% after the company received an LOI from a State Government Body to conduct a computer-based online examination.
Price Action
With a market capitalization of Rs. 1,151.29 Crores, the shares of Aptech Limited were up by 13.8 percent in the day’s trade touching a day’s high of Rs. 200.60 per share. The stock reiterated from the day’s high and was trading at Rs. 198.50 per share which is up 12.62 percent higher from the previous closing price of Rs. 176.25 apiece. The stock has delivered a negative 28 percent return in the past year and underperformed the Nifty Index.
What Happened
The stocks of Aptech rose after the company received a Letter of Intent (LOI) from the State Government Body. They have received a multi-year project from the said body to conduct a Computer-based online examination. The tenure for this examination is 3 years. The project needs to be conducted as per the terms and conditions, respective deliveries, service level agreements, and statement of work. The project value is determined based on number of candidates and the rate per candidate. Based on periodical work the project value will be determined.
About the Company
Aptech Limited is a global career education company that specializes in providing training and skill development programs across various sectors. Their business model focuses on offering a diverse range of courses in information technology, aviation, hospitality, and management through both classroom and online platforms. Aptech operates through a franchise model, enabling rapid expansion and accessibility to students worldwide.
The company focuses on partnerships with industry leaders to ensure its curriculum remains relevant and up-to-date. Additionally, Aptech invests in technology to improve learning experiences, including e-learning solutions and mobile applications. This strategy positions Aptech as a key player in the education sector, catering to the growing demand for skilled professionals in emerging industries.
Financials & Ratios
Its Revenue from operations grew by 15.71 percent year on year from Rs. 109.32 Crores in Q2FY24 to Rs. 126.50 Crores in Q2FY25, accompanied by profits of Rs. 11.43 Crores to Rs. 5.50 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 13.14 percent and a return on capital employed (ROCE) of 18.42 percent. It has reported a debt-to-equity ratio of 0.03.
Shareholding Pattern
As of September 2024, the shareholding pattern with promoters stake holding a share of 47.36 percent in Aptech, Foreign Institutional Investors (FII) holdings stood at 0.48 percent, Domestic Institutional investors (DII) standing at 3.19 percent, and public holdings standing at 48.98 percent.
Written by Santhosh S
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