Penny stock under Rs 50: This IT-company bags new order worth Rs 1,19,87,293 from Kotak Securities Ltd for Palo Alto Firewall

The stock’s 52-week high is Rs 106.42 and its 52-week low is Rs 35.

Globesecure Technologies Limited has announced that it has received a Purchase Order from Kotak Securities Limited for a three-year support renewal of the Palo Alto Firewall. This domestic order, valued at Rs 1,19,87,293, is expected to be executed within the next 10 days.

Globesecure Technologies Limited is in the business of IT Security products and related services. GSTL is a digital transformation company with a focus on cyber security. The company has executed cybersecurity transformation projects, infrastructure, and digital transformation projects for various institutions and also provided similar independent services.

The stock’s 52-week high is Rs 106.42 and its 52-week low is Rs 35. Talking about the financials, GSTL has a market cap of over Rs 60 crore. The company reported positive numbers in its half-yearly results (H2FY24) and annual results (FY24).

While the improvement in debtor days from 105 to 60 days is a positive sign, the company faces several challenges. The stock's high valuation of 3.01 times book value, coupled with the absence of dividend payouts despite reported profits, raises concerns about the company's future growth prospects. Additionally, the low promoter holding of 34 per cent and the significant pledging of 45.8 per cent of their shares indicate potential risks. The company's low return on equity of 8.28 per cent over the past three years and reliance on other income of Rs 1.13 Cr highlight its operational inefficiencies. The increase in working capital days from 164 to 236 days further exacerbates these issues, suggesting potential liquidity problems.

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