Low PE & high ROE stock under Rs 130 in green as the company from IT-Software sector acquires Grenew DMCC, Dubai – details inside!
The shares of the company have a PE of 10x, an ROE of 74.5 per cent and an ROCE of 86.8 per cent.
Quicktouch Technologies Limited, an Indian IT company, made a strategic shift in its acquisition plans. Originally, they aimed to acquire Grenew FZE, a subsidiary company based in UAE that specializes in refurbishing and recycling electronics. However, on June 20, 2024, the board of directors decided to take a bigger step by acquiring Grenew DMCC instead. Grenew DMCC is the parent holding company of Grenew FZE, and by acquiring it, Quicktouch gains control over the entire Grenew group of companies. This offers significant advantages compared to just acquiring the subsidiary.
Grenew DMCC is a Dubai-based holding company with a much larger reach. They specialize in the trading of used electrical and electronic appliances, and their network spans the US, UK, Africa, Hong Kong, and the Middle East. This aligns perfectly with Quicktouch's long-term goals of diversifying its business and expanding into new international markets. Furthermore, Grenew DMCC boasts a revenue of USD 38,10,420 for the year 2022-2023, indicating a potentially profitable venture for Quicktouch.
Also Read: 2:1 bonus share; 10:1 stock split in FY24: Multibagger penny stock at Rs 1.54 in green as the company expands its footprint in the insurance broking sector!
The acquisition is expected to be finalized by December 2025. Quicktouch will be making an all-cash purchase, acquiring a 100% stake in Grenew DMCC. The price per share is set at AED 310.35. This move by Quicktouch signifies a significant investment with the potential for substantial returns. By acquiring the holding company, they gain control over a well-established network in the used electronics trading industry, propelling them into new markets and revenue streams. The acquisition also presents an opportunity to integrate Quicktouch's existing IT expertise with Grenew's established operations, potentially creating a more comprehensive service offering in the future. Overall, this strategic shift positions Quicktouch for significant growth and a stronger foothold in the international market.
Today, shares of Quicktouch Technologies Limited gained 3.82 per cent to Rs 127.70 per share from its previous closing of Rs 123. The stock’s 52-week high is Rs 274 and its 52-week low is Rs 105.
Incorporated in 2013, Quicktouch Technologies Limited is an information technology company. The company is in the business of software IT solutions and consulting services, IT product/software development & software commercial training and web designing.
The company has a market cap of Rs 73 crore and reported positive numbers in its Quarterly Results (Q4FY24) and annual results (FY24). According to quarterly results, the company reported net sales of Rs 34.05 crore in Q4FY24 compared to net sales of Rs 42.74 crore in Q4FY23. The net profit increased by 139.2 per cent to Rs 1.15 crore in Q4FY24 compared to Rs 0.48 crore in Q4FY23. In its annual results, the net sales increased by 39 per cent to Rs 122.16 crore and net profit increased by 5.3 per cent to Rs 6.73 crore in FY24 compared to FY23.
The shares of the company have a PE of 10x, an ROE of 74.5 per cent and an ROCE of 86.8 per cent. The stock is up by 21.62 per cent from its 52-week low of Rs 105 per share.
Disclaimer: The article is for informational purposes only and not investment advice.
DSIJ’s ‘Micro Marvel' service recommends micro-cap stocks with the potential to grow multifold in long run. If this interests you, do download the service details here.
Related articles
-
Low PE, high ROE & high ROCE stock at Rs 123 zooms over 5 per cent in just 1 day – Company from IT-Software Industry; PAT jumps over 100 per cent!
-
Multibagger from its 52-week low: This micro-cap IT-company expands its supply chain finance platform with a strategic stake in Regime Tax Solutions through its subsidiary
-
Penny stock at Rs 5.04 and promoters & FIIs increase stake: This small-cap company plan support agreement for the acquisition of 100 per cent of the equity of Ebix Inc
-
Multibagger from its 52-week low: This micro-cap company approved the acquisition of a 100 per cent stake in Grenew FZE, a company incorporated in UAE
-
Promoters bought 30,00,000 shares & FIIs bought 16,00,000 shares of this multibagger stock via preferential issue; gains over 100 per cent from its 52-week low!
-
Low PE & High ROE Stock: This bio-pharma company signs commercialization agreement with Juno Pharmaceuticals in Canada!
-
Stock under Rs 100: This micro-cap agrochemical company receives orders worth Rs 46.65 lakh!
-
Stock under Rs 50: This online travel tech company signs MoU with Uttar Pradesh EcoTourism Development Board; details inside!
-
Ashish Kacholia’s portfolio multibagger stock hit 52-week high as Board is likely to announce stock split for first-time ever!
-
Rs 13,00,00,000 Capex: Multibagger specialty chemicals company constructs a new factory building at its Ambernath plant in Maharashtra
-
80 per cent from its 52-week low of Rs 14.28: Heavy buying in this textile stock at Rs 25.89; Gains over 17 per cent with spurt in volume
-
2:1 Bonus Share & 10:1 Stock Split in FY24: Multibagger penny stock at Rs 8.97 per share saw heavy buying; hit upper circuit today!
-
2,300 per cent returns: Incofin CVSO invests Rs 22,00,00,000 via NCDs in this multibagger EV loan provider company; details inside!
-
90 per cent returns from its 52-week low: Only buyers in this penny stock at Rs 1.87 per share; hit the upper circuit on July 01
-
Heavy buying in this penny stock at Rs 2.58: Hit upper circuit on July 01, 2024
-
From Re 0.24 to Re 0.97 per share in just 323 days & Stock split from Rs 10 to Rs 5 to Re 1: Scrip hit the upper circuit with heavy volume
-
Ashish Kacholia's portfolio multibagger IT stock in green as the company inks partnership with NNG for auto and mobility solutions!
-
Multibagger penny stock at Rs 26.88 hit back-to-back upper circuits after the company successfully agreed with ABC Australia
-
Rs 70,000 crore order book: LIC-backed multibagger civil construction stock in focus as company to increase the authorized share capital from Rs 200 crore to Rs 1,000 crore
-
Turnaround net profit after 3 years: Only buyers in this PFC & REC-backed multibagger power stock under Rs 20; Scrip hit upper circuit