The shares of this small cap company engaged in rendering security and intelligence related services jumped nearly 12 percent on Friday after the company reported considering the proposal for a share buyback.
Stock Performance
With a market capitalization of Rs 4,551.82 crore, SIS Ltd rose nearly 12 percent on Friday and made an intraday high of Rs 330.15 per share compared to its previous closing price of Rs 295.55 per share. The shares reiterated from the day’s high and were trading at Rs 315.90 which is 7 percent higher than the previous close.
What Happened
In an exchange filing on Thursday, SIS Ltd announced that the company will meet on Tuesday, March 25, to consider the proposal for a share buyback. This will be the company’s fourth buyback, following its three earlier buybacks in 2021, 2022 and 2023, which were carried out via the tender offer route.
A tender offer route involves a company repurchasing shares from existing shareholders at a predetermined price, which is typically higher than the current market price.
Company Overview
Security & Intelligence Services (India) provides a wide range of security and related services. Its offerings include training, manned guarding, emergency response and paramedic services. The company also specializes in loss prevention, asset protection, and mobile patrols.
Additionally, it provides facility management services such as housekeeping, cleaning and pest control. Through its subsidiaries, associates and joint ventures, the company also engages in alarm monitoring, response services, and electronic security systems.
Financial Performance
According to the latest quarterly report, the company reported a 9 percent increase in its revenue from Rs 3,073 crore in Q3 FY24 to Rs 3,363 crore in Q3 FY25. This was accompanied by a 176 percent increase in net profits from Rs 37 crore to Rs 102 crore during the same period.
Written by Shwetha Sairam
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