A leading software solutions and consultancy powerhouse has set the industry abuzz with its strategic moves in potential acquisitions. The company has recently inked non-disclosure agreements with four prominent players in technology sector, signaling possible acquisition moves that could reshape the market landscape.
Share Price Movement
The share price of Sofcom Systems Limited went up 4.5 percent to Rs. 72.79 per share on Friday, an increase from its previous close of Rs. 69.62 per share. The market capitalisation now stands at approximately Rs. 29.58 crore as of January 17, 2025.
What driving price?
On January 16, 2025, Sofcom Systems signed an NDA with Airlink Teleservices (ATPL), Fibervalley Communications (FCPL), RK Fibergrid India (RFIPL), and Scholarclone Private Limited (SPL) to protect shared information related to a potential acquisition. The contract size remains undisclosed.
Financial Highlights
In FY2024, the company reported a revenue of Rs. 0.36 crore, down 87% from Rs. 2.76 crore in FY2023. Profits also dropped by 92%, from Rs. 2.09 crore in FY2023 to Rs. 0.17 crore in FY2024.
Also read….
Competitors
Sofcom Systems operates in the IT software sector, competing with notable players like VirtualSoft Systems, IB Infotech, Ajel Ltd., Datasoft App, and others in the same industry.
Sofcom Systems is currently trading at a P/E of 493, which is very high than the industry P/E of 41.
Market Outlook
The Indian IT industry is growing faster, driven by rising global demand, job opportunities, and strong IT spending. With a projected market size of $19.93 billion by 2025, the sector benefits from global delivery centers and strategic alliances. Competitive advantages include a growing tech talent pool and a target of $500 billion revenue by 2030.
Government support through budget allocation, affordable data costs, and a focus on AI, cybersecurity, and blockchain further strengthens India’s position in the global IT landscape.
Written By Fazal Ul Vahab C H
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.
