IT stock surged by 5% to hit the upper circuit following the announcement of a strategic partnership with Central Electronics
IT stock: Renowned for its expertise in IT services and hardware trading, an Indian tech solutions provider has forged a two-year business collaboration with a leading state electronics firm. This partnership is geared towards delivering cutting-edge solutions across various industries, with a focus on IT, renewable energy, and defense, promising significant advancements in technology and sustainability.
Stock Price Movement
Sahana Systems Limited saw its share price soar by 5 percent to reach Rs. 1,965.90 per share on Tuesday, up from its previous close of Rs. 1,872.30 per share. The company’s market capitalization now stands at approximately Rs. 1,717.53 crore as of January 21, 2025.
Recent Development
Central Electronics Limited (CEL) and Sahana have recently inked a two-year business partnership agreement. This collaboration aims to bolster CEL’s market presence across government, public, and private sectors. Together, they will jointly pursue projects, secure orders, implement solutions, and manufacture Sahana products at CEL facilities, ensuring innovation and efficiency in delivering top-notch solutions.
Financial Highlights
In FY2024, Sahana Systems showcased robust growth, with revenue surging by 42% from Rs. 69 crore in FY2023 to Rs. 98 crore. Profits also witnessed a significant increase of 56%, rising from Rs. 18 crore in FY2023 to Rs. 28 crore in FY2024.
Competition
Operating in the IT Services and Consulting sector, Sahana Systems faces competition from industry giants such as Tata Consultancy Services (TCS), Infosys, HCL Technologies, Cognizant, Wipro, Capgemini, Fujitsu, ADP, and GoDaddy. The company’s current P/E ratio stands at 59.07, surpassing the industry average of 40.98.
Market Outlook
India’s IT and BPM sector are pivotal in driving economic growth, contributing 7.5% to GDP.
With a strong digital infrastructure and the support of the Digital India initiative, this sector is empowering citizens and driving innovation. As technology continues to transform industries, India is establishing itself as a global economic powerhouse, capitalizing on its vibrant tech ecosystem and strategic partnerships.
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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.