Buzzing stock: Datamatics Global Services makes new 52-week high

Datamatics Global Services Limited has made a new 52-week high of Rs 179.70 today by surging 15 per cent during the early morning session. On a YTD basis, the stock has given a return of approximately 55 per cent to the investors. 

The company has a joint venture agreement with Cybercom Group AB via a JV company i.e. Cybercom Datamatics Information Solutions Limited (CDIS) and the company is holding 50.50 per cent shares while Cybercom is holding 49.50 per cent shares in the JVC. Last month, the company’s board of directors approved to acquire 49.50 per cent stake in CDIS held by Cybercom and on the completion of the aforesaid acquisition of the shares, CDIS will become a wholly-owned subsidiary of the company. This acquisition of shares will be completed within 20 days of the company’s board meeting held on May 26, 2021. 

Also, the company’s board of directors had approved to convert loan provided to the subsidiary company, Datamatics Staffing Services Limited (DSS) into equity shares, resulting in an increase in the equity stake in DSS. 

On the financial front, the company generated revenue (without Cignex) in FY21 of Rs 1,022.3 crore, an increase of 1.5 per cent YoY. Its EBITDA grew by 15.1 per cent YoY at Rs 142.24 crore with an EBITDA margin of 12.4 per cent; up by 211 bps YoY. It recorded a PAT of Rs 79.75 crore, up by 25.1 per cent YoY. 

Datamatics Global Services is a global technology, BPM & digital solutions company that builds intelligent solutions for data-driven businesses.