2:1 Stock Split & Back to Back Upper Circuit: Digital Gaming Sector Witnesses Rs 50,000 Crores in Transactions as New Entrant Eyes Rs 1,000 Crore Revenue Opportunity
The stock price has been locking in the 5 per cent upper circuit since last 20 trading sessions.
Colab Platforms Limited has announced a strategic expansion into the burgeoning Predictive Gaming market, a sector with over 50 million users and transactions exceeding Rs 50,000 crore. This move is part of Colab’s long-term vision to innovate and diversify its digital offerings, leveraging its expertise in sports technology. The company aims to compete with established players like Real 11 and MPL Opinio by offering advanced analytics and interactive interfaces. Colab Platforms plans to adhere strictly to regulatory requirements, ensuring a secure and compliant environment for users. The Predictive Gaming industry is projected to generate revenues exceeding Rs 1,000 crore for the fiscal year 2024-25, driven by increasing digital adoption. Colab Platforms' entry into this market is expected to capitalise on first-mover advantages, positioning the company as a key player in this emerging sector. "Our entry into Predictive Gaming is a natural extension of our expertise in sports technology," said Puneet Singh, Managing Director of Colab Platforms Limited. The company is committed to creating a platform that entertains, educates, and empowers users, aligning with its mission to innovate in the digital space.
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Colab Platforms Ltd has proposed a sub-division of its existing fully paid-up equity shares, subject to shareholder approval. The company plans to split one equity share with a face value of Rs 2 into two equity shares with a face value of Re 1 each.
Colab Platforms Limited, incorporated in 1989, is a company that deals in IT products, including computer hardware and software processing job-work, as well as trading shares and securities. In the fiscal year 2022, the company generated 67 per cent of its revenue from the sale of services, 26 per cent from interest, and 7 per cent from other income. The company increased its authorised share capital significantly in FY22 and allotted 72 lakh convertible equity warrants on a preferential basis. A significant change in ownership occurred when M/s Skybridge Incap Advisory LLP acquired 29.13 per cent of the total share capital, becoming a new promoter. The company also underwent a rebranding strategy, changing its name from JSG Leasing Limited to Colab Cloud Platforms Limited. Additionally, there was a change in auditors, with M/s. Rawka & Associates replacing M/s K. Singh & Associates.
As of April 2, 2025, the stock price of Colab Platforms Limited is Rs 98.69, trading near its 52-week high of Rs 96.76. The 52-week low is Rs 11.4. Colab Platforms Limited has a market capitalisation of Rs 987 crore. The company's 1-year return stands at 352.78 per cent. The Price-Earnings (PE) Ratio is 460.8. Major public shareholders include Moonlight Multitrade LLP with 8.71 per cent, Akarshika Traders LLP with 8.48 per cent, Whamia Traders LLP with 8.02 per cent, Rukhmani Garments LLP with 7.43 per cent, and Avance Ventures Private Limited with 6.93 per cent.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 23.24 crore, reflecting a YoY growth of 1975.00 per cent compared to Rs 1.12 crore in December 2023. The operating profit stood at Rs 0.54 crore, marking a decline of 37.21 per cent from Rs 0.86 crore in the same quarter last year. The profit after tax (PAT) increased by 4.55 per cent to Rs 0.92 crore from Rs 0.88 crore in December 2023.
In FY24, the company posted a revenue of Rs 2.21 crore, registering a 47.33 per cent growth compared to Rs 1.50 crore in FY23. The net profit for the year stood at Rs 1.79 crore, up 110.59 per cent from Rs 0.85 crore in the previous financial year.
With a PE ratio of 503x, the company trades at a premium compared to the industry PE of 20.1. The company has ROCE of 8.64 per cent and ROE of 8.60 per cent.
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Disclaimer: The article is for informational purposes only and not investment advice.