GTT Data Solutions Surges 5% After Promoters Increase Stake by 30%
Stock Hits Upper Circuit as Promoters Strengthen Hold
Shares of GTT Data Solutions Ltd, a microcap technology firm specializing in integrating human and artificial intelligence, hit a 5% upper circuit on Thursday after the company’s promoters significantly increased their stake through a rights issue. This move has strengthened investor confidence, reflecting the promoters’ trust in the company’s long-term growth potential.
Stock Performance and Market Impact
The stock reached ₹81.79 per share, locking at the upper circuit, and continues its impressive rally over the years:
- 257% returns in the past year
- 3,101% returns in the past three years
- 5,109% returns in the past five years
With a market capitalization of ₹313.45 crores, the stock remains a strong multibagger, attracting both retail and institutional investors.
Promoters’ Stake Surge: A Game-Changer?
On March 5, 2025, the company’s promoter, Mr. Pankaj Ramesh Samani, announced the acquisition of 1,38,78,763 equity shares, constituting 36.21% of the company’s share capital after the rights issue.
Breakdown of Promoters’ Holding Before and After Rights Issue:
| Particulars | Before Rights Issue | After Rights Issue |
|---|---|---|
| Promoters’ Holding | 12.31% | 42.37% |
| No. of Shares Held | 1,35,22,186 | 2,74,00,949 |
| Total Shares (Company) | 1,91,61,915 | 3,83,23,830 |
| Company’s Valuation | ₹ 19,16,19,150 | ₹ 38,32,38,300 |
This significant increase highlights the promoters’ confidence in the company’s future growth and profitability.
Company Financials: Mixed Performance
GTT Data Solutions has showcased strong revenue growth but continues to struggle with widening losses.
| Financial Metric | Q2 FY25 | Q3 FY25 | % Change |
|---|---|---|---|
| Revenue from Operations | ₹ 3.54 Cr. | ₹ 4.59 Cr. | +30% |
| Net Loss | ₹ 0.67 Cr. | ₹ 1 Cr. | Expanded |
While revenue surged by 30% sequentially, the net loss increased, indicating rising costs or investments in expansion.
GTT Data Solutions Ltd: A Deep Dive
GTT Data Solutions Ltd is a technology company focused on “Dual Intelligence,” integrating human and artificial intelligence (AI) to help businesses optimize operations, improve decision-making, and accelerate innovation.
The company’s services include:
- Data Engineering & Advanced Analytics
- AI-Driven Automation
- IT Service Management
With an increasing reliance on AI-driven business solutions, GTT Data Solutions is well-positioned to capitalize on the growing market demand.
Key Financial Ratios & Market Insights
| Metric | Value |
|---|---|
| Market Cap | ₹ 313 Cr. |
| Current Price | ₹ 81.8 |
| 52-Week High / Low | ₹ 105 / ₹ 23.4 |
| Stock P/E | – |
| Book Value | ₹ 3.91 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | – |
| ROE (Return on Equity) | – |
| Face Value | ₹ 10.0 |
| Promoter Holding | 70.6% |
| Price-to-Book Value | 20.9 |
| Debt-to-Equity Ratio | 0.81 |
| Pledged Percentage | 0.00% |
| Industry P/E | 32.5 |
| Graham Number | – |
| Intrinsic Value | – |
| RSI (Relative Strength Index) | 55.3 |
| EPS (Earnings Per Share) | ₹ -4.34 |
| No. of Equity Shares | 3.83 Cr. |
| PEG Ratio | – |
| 200-Day Moving Average | ₹ 66.4 |
| Debt | ₹ 12.1 Cr. |
What Does This Mean for Investors?
- Promoter Confidence: The surge in promoter holding indicates strong trust in the company’s future.
- Strong Momentum: With multibagger returns, the stock remains attractive for long-term investors.
- Financial Challenges: While revenue is rising, losses indicate the company needs to control expenses.
- Industry Growth Potential: As AI and data-driven solutions expand, GTT Data Solutions is well-positioned for long-term success.
Conclusion: A Stock to Watch?
GTT Data Solutions has seen extraordinary stock performance, and the latest promoter stake increase adds further credibility. However, investors must consider the financial risks before making decisions. The rising revenue and AI-driven business model make it a high-potential stock, but profitability remains a concern.
With the AI industry booming, GTT Data Solutions remains a strong candidate for future growth, making it a stock to keep on your radar.
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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.