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AI & Machine Learning and Datacenter Facility Provider Bags 2 Orders Worth Rs 12,00,00,000; Company Reduces Debt by 80 per cent!
Rakesh Deshmukh

AI & Machine Learning and Datacenter Facility Provider Bags 2 Orders Worth Rs 12,00,00,000; Company Reduces Debt by 80 per cent!

The company’s shares have delivered an impressive return of over 80 per cent in just 3 months only.

Esconet Technologies Limited specializes in providing high-end supercomputing solutions and data center facilities, offering a comprehensive range of services including storage servers, network security, virtualization, and data protection. The company's portfolio includes servers and graphics workstations, data storage solutions, virtualization software, backup and disaster recovery solutions, data center and access networks, advanced software-defined networks, network security tools, email communication systems, high-availability databases, and log management and analytics software.

Esconet Technologies Limited recently secured a significant order for datacenter network equipment from Arista Networks, including installation and commissioning, from a reputed corporate customer. The total contract value is Rs 8.05 crore, including GST. This project aims to modernize the customer's two datacenters.

Additionally, it has obtained another substantial order from a different esteemed corporate client. This order, valued at Rs 4.07 crore including GST, involves the supply and installation of servers and network switching equipment to establish a private cloud at the client's captive datacenter, which is currently hosted on a global public cloud platform.

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Esconet Technologies Limited shares closed at around Rs 320 per share. The company’s current market capitalization stands at Rs 395.52 crore. The stock has delivered a return of around 80 per cent in just 3 months.

As per the Quarterly Results, in the fourth quarter of FY24, Esconet Technologies Limited recorded a revenue of Rs 66 crore. The operating profit for Q4 FY24 stood at Rs 4 crore. The net profit for Q4 FY24 was Rs 2 crore. Looking at the annual performance, the company generated a revenue of Rs 137 crore in FY24, compared to Rs 95 crore in FY23. The operating profit for FY24 was Rs 10 crore with a net profit of Rs 5 crore.

According to the shareholding pattern, promoters own 64.94 per cent, and public investors own 34.65 per cent. FIIs and DIIs own 0.34 per cent and 0.08 per cent stake in the company.

Investors must keep this Small-Cap stock on their radar.

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

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