Penny stock at Rs 18.15 was locked in upper circuit as the company reported a 316 per cent jump in net profit; promoters increase stake!

The company's shares have an ROE of 28.2 per cent and an ROCE of 23.2 per cent.

Today, shares of Adroit Infotech Ltd gained 2 per cent upper circuit to Rs 18.15 per share from its previous closing of Rs 17.80. The stock’s 52-week high is Rs 23.29 and its 52-week low is Rs 11.49.

The company announced stellar Quarterly Results (Q3FY24) and nine-month results (9MFY24) for the fiscal year 2024 which caused the sudden rise in the stock price. According to quarterly results, the net sales increased by per cent to Rs 7.08 crore and net profit increased by 316 per cent to Rs 1.57 crore* in Q3FY24 compared to Q2FY24 (* The company reported a turnaround story in net profit of Q3FY24 as it reported a net loss of R 0.72 crore in Q2FY24).

According to its nine-month results, the net sales of Rs 17.15 crore and net profit of Rs 1.28 crore in 9MFY24 compared to net sales of Rs 17.91 crore and net profit of Rs 5.64 crore in 9MFY23. In its annual results, the net sales increased by 252 per cent to Rs 22.45 crore and net profit increased by 510 per cent to Rs 3.78 crore in FY23 compared to FY22.  

Adroit Infotech Ltd., flexing its financial muscle, offers existing shareholders (record date Jan 19, 2024) the chance to invest in its future through a rights issue. This strategic move seeks Rs 49 crore by giving preferential access to buy new shares (3 for every 2 held) at a potentially discounted price (Rs. 15), aiming to strengthen its financial position, fuel growth, and unlock exciting opportunities. The subscription window opens on February 7 and closes on February 16, 2024.

Incorporated in 1990, Adroit Infotech Ltd is primarily engaged in the business of SAP Support Services. The company helps organisations to reduce costs and improve effectiveness and efficiency through internal process improvements using SAP products and solutions. The company has a market cap of Rs 98.32 crore. In December 2023, the promoters of the company increased their stake to 46.31 per cent from 45.07 per cent in September 2023.

Earlier, Verso Altima, an Adroit Infotech subsidiary, made power moves in 2023 with two key deals: a global SAP-BRIM integration partnership with a top US charging provider and an exclusive implementation agreement with IT giant Fujitsu. These strategic alliances leverage Verso's expertise, capitalize on Fujitsu's reach, and target existing customers, positioning Verso for major growth in the SAP-BRIM market.

The company's shares have an ROE of 28.2 per cent and an ROCE of 23.2 per cent. The stock is up by 58 per cent from its 52-week low of Rs 11.49 per share and multibagger returns of 236 per cent in 3 years.

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