Turnaround story in this penny stock at Rs 18; BSE & NSE granted listing and trading approval for 3,25,01,058 partly paid-up equity shares on right basis!

The stock is up by 56 per cent from its 52-week low of Rs 11.49 per share and multibagger returns of 103 per cent in 3 years.

Today, shares of Adroit Infotech Ltd plunged 2.18 per cent to Rs 17.50 per share from its previous closing of Rs 17.89 with an intraday high of Rs 17.90 and an intraday low of Rs 17.30. The stock’s 52-week high is Rs 23.29 and its 52-week low is Rs 11.49.  

The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have granted listing and trading approval for 3,25,01,058 partly paid-up equity shares of Adroit Infotech Ltd, issued at an issue price of Rs 15 per share (with Rs 3.75 paid on application and the remaining Rs 11.25 to be paid on additional calls as decided by the company), effective from March 7, 2024. These shares will be listed under the 'T' group with a market lot of 1 and will trade under the scrip code ADROITPP. The face value of the shares is Rs 10, with a current paid-up value of Rs 2.50. They were allotted on February 23, 2024, and will have dividend rights proportional to the paid-up amount.

This strategic move seeks Rs 49 crore by giving preferential access to buy new shares (3 for every 2 held) at a potentially discounted price (Rs. 15), aiming to strengthen its financial position, fuel growth, and unlock exciting opportunities.

According to Quarterly Results, the net sales increased by per cent to Rs 7.08 crore and net profit increased by 316 per cent to Rs 1.57 crore* in Q3FY24 compared to Q2FY24 (* The company reported a turnaround story in net profit of Q3FY24 as it reported a net loss of R 0.72 crore in Q2FY24).

According to its nine-month results, the net sales of Rs 17.15 crore and net profit of Rs 1.28 crore in 9MFY24 compared to net sales of Rs 17.91 crore and net profit of Rs 5.64 crore in 9MFY23. In its annual results, the net sales increased by 252 per cent to Rs 22.45 crore and net profit increased by 510 per cent to Rs 3.78 crore in FY23 compared to FY22.  

Incorporated in 1990, Adroit Infotech Ltd is primarily engaged in the business of SAP Support Services. The company helps organisations to reduce costs and improve effectiveness and efficiency through internal process improvements using SAP products and solutions. The company has a market cap of Rs 94.79 crore. As of February 2024, the promoters own 38.45 per cent and the rest of the stake i.e., 61.55 per cent is owned by the public shareholders.

Earlier, Verso Altima, an Adroit Infotech subsidiary, made power moves in 2023 with two key deals: a global SAP-BRIM integration partnership with a top US charging provider and an exclusive implementation agreement with IT giant Fujitsu. These strategic alliances leverage Verso's expertise, capitalize on Fujitsu's reach, and target existing customers, positioning Verso for major growth in the SAP-BRIM market.

The company's shares have an ROE of 28.2 per cent and an ROCE of 23.2 per cent. The stock is up by 56 per cent from its 52-week low of Rs 11.49 per share and multibagger returns of 103 per cent in 3 years.

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