Micro-cap double win: Low PE multibagger IT stock secures Rs 9,06,24,000 order and bags major project extension!
Now, the company has received an extension to the aforementioned orders, with the size of the orders/contract contingent on the contractor’s actual execution value during the project duration.
On the daily chart, the Nifty formed a small bearish candlestick pattern, adorned with upper and lower shadows. On a weekly basis, it exhibited resilience by adding 0.32 per cent, forming a bullish candlestick pattern marked by higher lows for the fourth consecutive week, with robust support found at 19400, the 20-week Exponential Moving Average (EMA).
Nifty persisted in consolidating within the range of 19620-19875 for seven straight sessions.
The benchmark indices closed with modest cuts, extending the losing streak to the second session. IT stocks proved to be significant drags, while buying activities were observed in pharma and metal stocks.
Against this backdrop, post-market hours brought forth an intriguing development concerning a micro-cap IT stock—Ceinsys Tech Ltd. A subsidiary of the conglomerate Meghe Group of Institutions, Ceinsys Tech specializes in providing Engineering, Geospatial, and IT solutions.
The company announced securing a substantial Purchase Order from MAHAGENCO, Maharashtra State Power Generation Company Limited, totaling Rs 9,06,24,000/-. Adding to this positive momentum, Ceinsys Tech has been awarded an extension letter until June 15, 2024, for a major project from the State Water and Sanitation Mission (SWSM), Uttar Pradesh. This project involves the Selection and Appointment of a Consultant for Third-Party Inspection (TPI) and Monitoring of Physical and Financial Progress through a Quality and Cost Based Selection (QCBS) process for various Rural Water Supply Projects across three clusters, namely Lucknow, Chitrakoot Dham, and Devi Patan. This extension builds upon the existing orders received by the company from SWSM, Uttar Pradesh in FY 2021-22, with the size of the orders/contract depending on the contractor’s actual execution value during the project duration.
Ceinsys Tech had previously received Letters of Award from SWSM, Uttar Pradesh, for various Rural Water Supply Projects across the clusters mentioned, amounting to Rs 65.93 crore. in the Financial year 2021-22. Now, the company has received an extension to the aforementioned orders, with the size of the orders/contract contingent on the contractor’s actual execution value during the project duration.
Trading at a PE of 14.7x, Ceinsys Tech isn't just a stock; it's proven to be a multibagger, delivering handsome returns of 141.46 per cent in the last year. This achievement positions it as a standout performer in the market, capturing the confidence and attention of investors.
Disclaimer: The article is for informational purposes only and not investment advice.
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