IT stock list at 47.79 per cent premium over the IPO price; Locked in upper circuit on August 28
The company has a market cap of Rs 1,267.78 crore with a PE of 20x whereas the industry PE is 40x.
Today, the stock market was trading in red with BSE Sensex Index down 0.04 per cent at a level of 81,863. Though the market was in red, shares of this IT company were locked in a 5 per cent upper circuit to Rs 304.45 per share from its previous closing of Rs 206 per share. The stock is listed at a 47.79 per cent premium over the IPO price.
The buzzing stock name is Orient Technologies Ltd.
Orient Technologies Ltd, a leading IT solutions provider headquartered in Mumbai, Maharashtra, was founded in 1997. With a strong focus on delivering cutting-edge technological solutions, the company operates across various business verticals, including IT infrastructure, IT-enabled services, and cloud and data management. Their expertise lies in providing comprehensive solutions tailored to meet the specific needs of their clients.
Orient Technologies has a proven track record of successful partnerships with industry-leading technology providers, such as Dell International Services India Pvt Ltd and Fortinet, Inc. This collaboration enables them to offer a wide range of products and services, including data center solutions, end-user computing, managed services, multi-vendor support, IT facility management, and more. The company's commitment to excellence has earned them the trust of renowned organizations, including Coal India, Mazagon Dock Shipbuilders, Jyothy Labs, Décor and Tradebulls Securities. As of June 30, 2024, the company's order book stands at Rs 101 crore, with a significant portion coming from government and PSU contracts.
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The company has demonstrated consistent growth over the past few years, achieving a Compound Annual Growth Rate (CAGR) of 13.74 per cent in revenue and 11.25 per cent in net profit from FY22 to FY24. In FY24, the company achieved an impressive Return on Equity (RoE) of 27 per cent and a Return on Capital Employed (RoCE) of 28 per cent. The company has a market cap of Rs 1,267.78 crore with a PE of 20x whereas the industry PE is 40x.
India's IT industry is rapidly expanding, with strong demand for IT Infrastructure, IT Enabled Services (IteS), and Cloud and Data Management Services. IT Infrastructure supports business operations through data centres and networks, while ITeS provides essential managed services. The shift to Cloud and Data Management is driving digital transformation, positioning India as a key player in the global market.
Disclaimer: The article is for informational purposes only and not investment advice.
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