Euphoria Infotech Surges 10% After Securing ₹15.8 Cr Order from Webel Tech
Stock Hits Upper Circuit Amid Strong Order Win
The shares of Euphoria Infotech (India) Limited soared by 10% on the Bombay Stock Exchange (BSE) on Thursday after the company announced a significant order win worth ₹15.8 crores from Webel Technology Limited. This latest development has sparked investor interest, propelling the stock to its upper circuit limit for the day.
With a market capitalization of ₹7,358.3 crores, the stock hit ₹38.87, up from its previous closing price of ₹35.34. However, despite this surge, the stock has delivered negative returns of nearly 32% over the past year and has gained around 31% in the past month.
Key Highlights of the Order
Euphoria Infotech secured the contract from Webel Technology Limited, the nodal agency for IT and IT-enabled services in West Bengal. Under this contract, the company will implement IoT-enabled water service delivery measurement and monitoring sensing systems across villages in Purba and Paschim Medinipur districts.
This initiative aims to revolutionize rural water supply management through affordable and advanced technology solutions. The successful execution of this project is expected to enhance Euphoria Infotech’s credibility in the IoT and IT services space, further strengthening its market position.
Strong Financial Performance
Euphoria Infotech has exhibited impressive financial growth, reflected in its latest earnings report. The company’s revenue from operations grew by 89.2% year-on-year (YoY), rising from ₹3.7 crores in H1 FY24 to ₹7 crores in H1 FY25.
Similarly, net profit surged by 66.6% YoY, increasing from ₹0.6 crore to ₹1 crore during the same period. This substantial growth indicates the company’s expanding business and improved profitability.
Company Overview
Founded in 2001, Euphoria Infotech (India) Limited specializes in high-end IT and IT-enabled services. The company’s portfolio includes citizen-centric applications, Enterprise Resource Planning (ERP), e-commerce, API development, Internet of Things (IoT), cloud-based tools, and data management solutions.
With a strong focus on innovation and technology-driven services, Euphoria Infotech has established itself as a reliable IT solutions provider.
Financial Ratios and Key Metrics
Below is a detailed breakdown of Euphoria Infotech’s financial ratios and stock performance:
| Metric | Value |
|---|---|
| Market Cap | ₹11.3 Cr. |
| Current Price | ₹38.9 |
| 52-Week High/Low | ₹89.0 / ₹33.1 |
| Stock P/E | 8.95 |
| Book Value | ₹53.7 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 13.9% |
| ROE (Return on Equity) | 9.83% |
| Face Value | ₹10.0 |
| Promoter Holding | 63.6% |
| Price to Book Value | 0.72 |
| Debt to Equity | 0.08 |
| Pledged Percentage | 0.00% |
| Industry PE | 27.7 |
| Graham Number | ₹72.7 |
| Intrinsic Value | ₹69.3 |
| RSI (Relative Strength Index) | 36.7 |
| EPS (Earnings Per Share) | ₹4.38 |
| No. of Equity Shares | 0.29 |
| PEG Ratio | Not Available |
| DMA 200 (200-Day Moving Average) | ₹73.4 |
| Free Cash Flow (3 Years) | ₹-7.06 Cr. |
| Free Cash Flow (5 Years) | ₹-7.66 Cr. |
| Debt | ₹1.29 Cr. |
| Return on Assets | 7.36% |
| Price to Sales Ratio | 1.21 |
What Does This Mean for Investors?
- Strong Growth Potential: The recent order win showcases Euphoria Infotech’s ability to secure high-value contracts, which may fuel future revenue growth.
- Undervalued Stock? The company’s P/E ratio (8.95) is significantly lower than the industry average (27.7), suggesting potential undervaluation.
- Low Debt Levels: With a debt-to-equity ratio of just 0.08, the company maintains a strong financial position.
- Promoter Confidence: The high promoter holding of 63.6% indicates confidence in the company’s future.
Frequently Asked Questions (FAQs)
1. Why did Euphoria Infotech’s stock hit the upper circuit?
The stock surged 10% after the company announced an order worth ₹15.8 crores from Webel Technology Limited, leading to increased investor confidence.
2. What is the significance of this order?
The order involves implementing IoT-enabled water service measurement and monitoring systems in rural West Bengal, reinforcing Euphoria Infotech’s expertise in smart infrastructure projects.
3. Is Euphoria Infotech financially stable?
Yes, the company has low debt (₹1.29 Cr.), a high promoter holding (63.6%), and a strong revenue and profit growth trend.
4. What are the risks involved in investing in this stock?
- Stock Volatility: The stock has shown negative returns of 32% over the past year, which indicates market uncertainty.
- Low Free Cash Flow: The company has reported negative free cash flow, which may affect its ability to fund future projects.
5. Is Euphoria Infotech a good buy at its current price?
With a P/E ratio of 8.95, the stock appears undervalued compared to its industry P/E of 27.7. Investors looking for long-term IT sector growth may find it attractive, but market risks should be considered.
Conclusion
Euphoria Infotech’s latest order from Webel Technology Limited is a significant milestone, reinforcing its presence in the IoT and IT solutions market. The company’s strong financials, low debt, and promising growth prospects make it an intriguing stock to watch. However, investors should carefully analyze the risks and market trends before making any investment decisions.
Would you invest in Euphoria Infotech after this major order win? 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.