Synopsis: ACS Technologies Ltd hit a 2% upper circuit after receiving ₹5.52 crore from the Indian Navy and others, a ₹4.87 crore order from the Indian Navy for supplying and installing security gadgets, and another from Afcons Infrastructure.
The shares of a Penny stock specializing in Information Technology (IT) and IT-enabled services, with a focus on system integration, security, surveillance, IoT, and AI-based solutions for various sectors, hit a 2 percent upper circuit upon receiving a work order from the Indian Navy.
With a market capitalization of Rs. 225.25 crores on Thursday, the shares of ACS Technologies Ltd hit a 2 percent upper circuit, making a high of Rs. 37.12 per share compared to its previous closing price of Rs. 36.40 per share.
What Happened
ACS Technologies Ltd, engaged in Information Technology (IT) and IT-enabled services, with a focus on system integration, security, surveillance, IoT, and AI-based solutions for various sectors, has received a work order from the Indian Navy, marking another important milestone for the company.
The order involves the supply and installation of security gadgets and related work, and the order, valued at Rs. 4.87 crore (Rupees Four Crore Eighty-Seven Lakh Thirty-Four Thousand). The company looks forward to executing this project with the highest standards of quality, safety, and efficiency in alignment with the Indian Navy’s expectations.
Along with it, the company has also received a Rs. 64.99 lakh work order from Afcons Infrastructure Limited for the supply, installation, testing, and commissioning of security and surveillance equipment, including cameras, baggage scanners, and turnstiles. The order has been awarded by a domestic entity, with execution as per client requirements.
Financial & Others
The company’s revenue rose by 68 percent from Rs. 16.42 crore to Rs. 27.63crore in Q1FY25-26. Meanwhile, Net profit rose from Rs. 0.78 crores to Rs. 0.82 crores during the same period.
The company shows strong financial efficiency with a PEG ratio of 0.07, indicating that its stock may be undervalued relative to its earnings growth. A debt-to-equity ratio of 0.28 reflects a conservative capital structure, suggesting the company relies more on equity than debt, which lowers financial risk.
The company’s operational performance has also improved significantly. Debtor days decreased from 188 to 136, showing faster collection of receivables, while working capital requirements dropped from 189 days to 106 days, indicating better cash flow management and overall operational efficiency.
ACS Technologies Ltd is an Indian IT company that has shifted from its initial textile manufacturing operations to providing IT services like system integration, security, surveillance, IoT, and software development.
The company was formerly known as LN Industries India Limited and changed its name to ACS Technologies Limited in 2023 after a merger and scheme of arrangement. Its services include custom software development, IT infrastructure management, security solutions, and expanding into newer fields like Artificial Intelligence and Big Data analytics.
Written by Sridhar J
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