Low PE & high ROE stock under Rs 140 in green as this IT-company allocates 93,796 equity shares on conversion of warrants!

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 converted a set of warrants into regular company shares. These warrants were originally offered for purchase in January 2024, with investors paying 25 per cent of the price upfront. On July 02, 2024, some investors exercised their right to convert their warrants into full shares by paying the remaining 75 per cent of the price. This resulted in the creation of 93,796 new shares for Rs 196.17 each. The company provided a list of these specific investors (who were not founders or major stakeholders) in an annexure. There are still over 1 million warrants outstanding, which can be converted into shares within the next 18 months by paying the remaining balance. Overall, this issuance increased Quicktouch's total issued capital to Rs 6,32,37,960, divided into 63,23,796 shares. The new shares have the same rights as existing shares.

Earlier, Quicktouch Technologies originally planned to buy a UAE subsidiary that refurbishes electronics but instead decided to acquire the entire parent company, Grenew DMCC, for a bigger international presence. This gives them control over a Dubai-based holding company with a trading network across multiple continents and potentially more profit, as Grenew DMCC already has a good revenue stream. The all-cash purchase is expected to close by December 2025. It could lead to Quicktouch combining its IT skills with Grenew's operations to offer more services, making this a strategic move for Quicktouch's future growth.

Today, shares of Quicktouch Technologies Limited gained 5.72 per cent to Rs 138.70 per share from its previous closing of Rs 131.20. The stock’s 52-week high is Rs 274 and its 52-week low is Rs 105.

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About the Company

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 72.25 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 32 per cent from its 52-week low of Rs 105 per share.

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