Adroit Infotech Surges 7% After Securing ₹6 Crore Order from Tanzania-Based Azam Media
Adroit Infotech’s Stock Rises Following Major International Order
Adroit Infotech Limited has caught investors’ attention after its stock surged by 6.80% following an announcement of a significant international order from Azam Media Limited, a Tanzania-based company. The order, worth ₹6.20 crore, has boosted investor sentiment, leading to increased market activity for the stock.
Share Price Movement
The stock of Adroit Infotech Limited, which has a market capitalization of ₹44 crore, opened at ₹16.98, reflecting a slight increase of 0.47% from the previous day’s close of ₹16.90. However, following the announcement of the international deal, the stock gained momentum and reached a high of ₹18.05, marking an impressive 6.80% jump. This surge reflects the market’s confidence in the company’s ability to expand its global footprint and secure international deals.
Order Update: Strengthening Global Presence
Adroit Infotech’s subsidiary, Verso Altima India, has secured an order worth ₹6.20 crore from Azam Media Limited, a leading company in Tanzania. The contract includes SAP-Implementation Services, Functional and Technical Support for SAP applications, and Comprehensive Support services.
This strategic win highlights Adroit Infotech’s growing expertise in SAP consulting and implementation services. The deal also reinforces its reputation as a trusted partner for enterprise technology solutions in international markets. With businesses worldwide increasingly adopting SAP solutions, the company is well-positioned to capitalize on global demand.
Financial Performance: A Mixed Bag
Adroit Infotech’s financial performance presents a combination of growth and challenges. Here’s a breakdown of the key financial indicators:
Revenue Growth
- The company’s revenue increased by 8.47% year-on-year (YoY), rising from ₹7.08 crore in Q3FY24 to ₹7.68 crore in Q3FY25.
- On a quarter-on-quarter (QoQ) basis, revenue saw an 8.62% increase, climbing from ₹7.07 crore in the previous quarter.
Profitability
- Net profit, however, witnessed a significant YoY decline of 65.38%, dropping from ₹1.56 crore to ₹0.54 crore.
- QoQ, the company recorded a 22.72% increase in net profit from ₹0.44 crore in the previous quarter.
The decline in YoY profits suggests the company faced certain operational or cost-related challenges, while the QoQ improvement indicates a potential recovery.
About Adroit Infotech Limited
Founded in 1990 and headquartered in Hyderabad, India, Adroit Infotech Limited is a specialized SAP consulting company. With nearly two decades of expertise, the company provides services such as:
- Business and technology consulting
- Enterprise solutions
- Systems integration
- Custom application development
- Application maintenance and support
Adroit Infotech’s focus on SAP services has enabled it to establish itself as a niche player in the technology solutions industry. Its recent deal with Azam Media Limited signals its increasing reach beyond the domestic market.
Key Financial Ratios and Market Indicators
The company’s financial metrics provide valuable insight into its overall performance and investment potential:
| Metric | Value |
|---|---|
| Market Cap | ₹45.0 Cr. |
| Current Price | ₹17.7 |
| 52-Week High/Low | ₹30.4 / ₹13.1 |
| Stock P/E | 13.6 |
| Book Value | ₹21.3 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 13.3% |
| ROE (Return on Equity) | 10.9% |
| Face Value | ₹10.0 |
| Promoter Holding | 36.9% |
| Debt to Equity | 0.28 |
| Price to Earnings | 13.6 |
| Pledged Percentage | 0.00% |
| QoQ Profits Growth | 20.0% |
| Qtr Profit Variation | -65.6% |
| Industry P/E | 31.9 |
| Graham Number | ₹21.2 |
| Intrinsic Value | ₹16.0 |
| RSI (Relative Strength Index) | 53.9 |
| EPS (Earnings Per Share) | ₹0.94 |
| Number of Equity Shares | 2.48 Cr. |
| PEG Ratio | 0.36 |
| DMA 200 (200-day moving average) | ₹18.9 |
| Free Cash Flow (3Yrs) | ₹-8.30 Cr. |
| Free Cash Flow (Recent) | ₹-0.22 Cr. |
| Total Debt | ₹14.9 Cr. |
Stock Outlook: What’s Next for Adroit Infotech?
The company’s latest order win has certainly fueled optimism among investors, leading to a strong rally in its stock price. However, its financial performance indicates a need for consistent growth in profitability.
Reasons to Watch Adroit Infotech:
- Global Expansion: The recent contract from Tanzania signals increasing international business opportunities.
- SAP Market Growth: As SAP services become more essential for businesses, Adroit Infotech stands to benefit from rising demand.
- Stock Valuation: With a P/E ratio of 13.6, the stock appears to be attractively priced compared to the industry P/E of 31.9, making it a potential value investment.
- Profitability Concerns: Despite revenue growth, declining YoY profits raise concerns about cost control and operational efficiency.
Conclusion
Adroit Infotech’s latest international order from Azam Media Limited has provided a strong boost to investor sentiment, as reflected in its 7% stock price jump. While the company has shown positive revenue growth, it needs to work on improving profitability. With a strong focus on SAP solutions and increasing international recognition, Adroit Infotech remains an interesting stock to watch in the coming months.
Would you consider investing in Adroit Infotech based on its latest performance? Let us know in the comments!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.