Rs 18.50 crore order book: High ROE & high ROCE penny stock in green as the company incorporates a subsidiary by making a strategic investment; details inside!

The shares of the company have an ROE of 31.7 per cent and an ROCE of 41 per cent.

Today, shares of Yudiz Solutions Ltd gained 4.51 per cent to Rs 79.95 per share from its previous closing of Rs 76.50. The stock’s 52-week high is Rs 213.80 and its 52-week low is Rs 65.50.

Yudiz Solutions Ltd, an IT solutions and consultancy company, is expanding into the digital media market by establishing a subsidiary. To achieve this, they will acquire a controlling stake (51 per cent or more) in Insightly Dataworks Private Limited, a company in the digital media sector. This strategic move will allow Yudiz to leverage Insightly Dataworks' existing network and business to strengthen its position in the digital media space. The acquisition does not require governmental approval and will be completed through a share subscription by Yudiz, with details about the acquisition cost not being disclosed. It's important to note that Insightly Dataworks is considered a related party to Yudiz, and promoters from Yudiz will be involved in the transaction, ensuring the subscription price is based on market value. This acquisition marks Yudiz's diversification beyond its core IT business. On April 27, 2024, the subsidiary company under Yudiz Solutions Limited named "Insightly Dataworks Private Limited" was officially incorporated.

Incorporated in 2012, Yudiz Solutions Limited is engaged in the business of providing IT solutions and consultancy services. The company has a market cap of over Rs 80 crore.

According to the half-yearly results, revenue from operations increased by 45.5 per cent to Rs 15.88 crore in H1FY24 compared to revenue from operations of Rs 10.91 crore in H1FY23. The EBITDA increased by 895.8 per cent to Rs 3.08 crore in H1FY24 compared to Rs 0.31 crore in H1FY23. The company reported a net profit of Rs 1.33 crore in H1FY24 compared to a net loss of Rs 0.54 crore in H1FY23, an increase of 347 per cent.

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According to the annual results, the net sales increased by 45.43 per cent to Rs 27.3 crore, operating profit increased by 176.5 per cent to Rs 6.09 crore and net profit increased by 271.6 per cent to Rs 2.75 crore in FY23 compared to FY22.  

Earlier, Yudiz Solutions and esteemed Nirma University signed a Memorandum of Understanding (MoU) to bridge the gap between academia and industry. This partnership focuses on collaborative projects, knowledge sharing, and leveraging technology for educational advancements in areas like AI, blockchain, and AR/VR. Through internships, training, and research, both entities aim to equip students with practical skills and develop real-world applications of emerging technologies. This initiative, marked by a shared vision and commitment, signifies Yudiz's continued contribution to the tech landscape, following its recent strides in 5G VR gaming and startup empowerment.

Yudiz Solutions boasts a robust order book of Rs 18.5 crore, buoyed by strong investor confidence. The shares of the company have an ROE of 31.7 per cent and an ROCE of 41 per cent. Investors should keep an eye on this SME stock.

Disclaimer: The article is for informational purposes only and not investment advice.