Debt-free IT stock to keep under radar as company signs MoU with Japan-based IM Corporation Ltd for smart meter project
The company is debt-free and stock is up by 87 per cent from its 52-week low of Rs 86.20 per share.
Fidel Softech Limited has entered into a Memorandum of Understanding (MOU) with IM Corporation Ltd, a Japanese company, to collaborate on the development and support of a SMART meter project scheduled for 2026. This agreement also encompasses enterprise solution implementation and other related services. The MOU, effective from September 25, 2024, to March 31, 2026, has an estimated value of approximately 75 million Japanese Yen. Neither company holds any shares in the other, and the agreement does not grant any special rights, such as the ability to appoint directors or restrict changes to the capital structure.
The parties involved in the MOU, Fidel Softech Limited and IM Corporation Ltd, are not related to each other in any way, nor are they associated with promoters, promoter groups, or group companies. Consequently, this transaction does not fall under the category of related party transactions. As no shares are being issued and no loan agreements are involved, the sections related to share issuance and loan agreements do not apply to this MOU.
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About the Company
Fidel Softech Ltd, established in 2004, is a technology solutions and services provider specializing in Language Engineering, Enterprise product services, and Cloud Infrastructure services. The company is ISO9001 and ISO27001 certified and offers a wide range of services, including Technology Implementation, Localization Services, Consulting, and Staffing. With expertise in managing Japanese geography projects, implementing and supporting ServiceNow and Automation, and providing deep localization engineering and language expertise in over 60 languages, Fidel Softech Ltd is well-equipped to handle complex projects. Fidel Softech Ltd serves clients in Japan, Asia-Pacific, North America, and EMEA regions.
The company has a market cap of over Rs 200 crore with a PE of 32x, an ROE of 17 per cent and an ROCE of 23 per cent. The company is debt-free and stock is up by 87 per cent from its 52-week low of Rs 86.20 per share. Investors should keep an eye on this debt-free IT stock.
Disclaimer: The article is for informational purposes only and not investment advice.