800 per cent return and DIIs increase stake: This multibagger engineering solutions company is set to expand in the middle east!
The company recently raised a QIP of Rs 220 crores and is set to diversify its operations by venturing into Middle Eastern Energy Markets
AXISCADES Technologies Limited, an Indian engineering solutions company, is set to expand its international presence in the energy markets of the Middle East. Middle East is currently the fastest-growing market for engineering services. Key triggers for this expansion include forecasts of aggressive business growth in oil and gas, renewables, and infrastructure design sectors in Middle Eastern countries and the company’s recent acquisition of Hyderabad-based company EPCOGEN which specializes in complex project engineering and execution in Oil & Gas, Refineries, Petrochemicals, and the Renewable Power industry. The acquisition provides it access to Middle East and North American energy markets along with the benefit of onboarding marquee logos.
The company’s management is optimistic about the expansion as opportunities in the oil and gas sector are likely to sustain for the next 5-7 years before transitioning towards green energy and expects to win some large contracts, especially in the carbon capture, sulphur capture, and large gas storage plants sectors in the Middle East to expand its energy vertical which currently contributes to 3 per cent of the company’s revenue.
In Q3FY24, AXISCADES Technologies raised Rs. 220 crores via its QIP launch from marquee investors. The company also posted a 20 per cent increase in its revenue from the Engineering Services Vertical at Rs. 512 crores in 9MFY24 compared to Rs. 426 crores in 9MFY23 and total revenue of Rs 697 crores in 9MFY24, posting an 18 per cent YoY increase in operating revenue. It targets a margin of 18 per cent over the next 2-3 years. DIIs increased their stake in the company in March 2024. The stock has also delivered multibagger returns of 800 per cent.
The stock has shown impressive growth, and investors should keep a close eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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