Turnaround story in this penny stock at Rs 21.20 & promoters sold 11.55 per cent stake: This IT-company announces a 198 per cent jump in net profit!

The stock is up by 81 per cent from its 52-week low of Rs 11.73 per share and multibagger returns of over 200 per cent in 3 years.

Today, shares of Adroit Infotech Ltd hit a 5 per cent upper circuit to Rs 21.20 per share from its previous closing of Rs 20.20. The stock’s 52-week high is Rs 24.89 and its 52-week low is Rs 11.73.

Adroit Infotech Limited, based in Hyderabad, India, is a leading provider of SAP consulting services with nearly two decades of experience in the field. The company specializes in helping organizations optimize their internal processes through innovative SAP solutions. Adroit offers a wide range of services including process analysis, implementation, rollouts, ongoing support, maintenance, and upgrades. With a strong team of consultants experienced in both domestic and international projects, Adroit Infotech is recognized for its commitment to enhancing the effectiveness and efficiency of its client's operations, ensuring a high return on investment in SAP technologies.

According to Quarterly Results, total income increased by 86.3 per cent to Rs 8.61 crore in Q4FY24 compared to Q4FY23. The company reported a turnaround net profit of Rs 1.83 crore in Q4FY24 compared to a net loss of Rs 1.86 crore in Q4FY23, an increase of 198.5 per cent. In its annual results, the net sales increased by 10.7 per cent to Rs 24.86 crore and net profit decreased by 21 per cent to Rs 3 crore in FY24 compared to FY23. 

Adroit Infotech Ltd also signed a non-binding agreement to acquire a US-based ERP company in its entirety. This strategic move fuels Adroit's inorganic growth plan to strengthen its North American presence and service offerings. The acquisition is expected to significantly boost Adroit's revenue, expand its mid-market and large enterprise client base across the US and Canada, and broaden its ERP solutions portfolio to include both SAP (their current expertise) and Oracle solutions offered by the US target company. This aligns with Adroit's long-term vision of sustainable growth, staying relevant to client needs and delivering profitable returns for investors.

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Additionally, Adroit's recent success in securing a substantial 1-year, Rs 2 crore contract with BIZNET (Indonesia) to manage their SAP BRIM application showcases their ability to deliver comprehensive SAP support (both onsite and offshore) in dynamic billing environments – particularly valuable for BIZNET in the real-time billing intensive telecommunications sector. This win not only strengthens Adroit's international presence but also cements its leadership in SAP consulting.

The promoters of the company sold an 11.55 per cent stake and decreased their stake to 38.45 per cent in March 2024 compared to 50 per cent in March 2023. The company's shares have an ROE of 28 per cent and an ROCE of 23 per cent. The stock is up by 81 per cent from its 52-week low of Rs 11.73 per share and multibagger returns of over 200 per cent in 3 years.

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