52-week high alert & Rs 18.50 crore order book: This micro-cap company incorporated a subsidiary, by making 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 gained 1.2 per cent and made a fresh 52-week high of Rs 131.50 per share from its opening price of Rs 130 per share. At 01:00 pm, shares of the company were trading at Rs 120 per share, down 11.67 per cent.  

Yudiz Solutions Ltd announced plans to establish a subsidiary by acquiring a majority stake (51 per cent or more) in Insightly Dataworks Private Limited (or a company with an approved name by the registrar). This strategic move aims to strengthen Yudiz's position in the digital media market by leveraging the target company's network and existing business, without requiring any governmental approvals. The company will subscribe to the stake without involving a share swap, and the cost of acquisition details was not mentioned.

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 140 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.

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.  

In a major collaboration, Yudiz Solutions and esteemed Nirma University have 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. Notably, foreign institutional investors like Nav Capital VCC (1.53 per cent), Craft Emerging Market Fund PCC (1.03 per cent), and Foreign Portfolio Investors Category II (0.66 per cent) hold significant stakes, underscoring the company's potential for future growth. 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.