Microcap stock experiences a 20% surge to reach the upper circuit following the announcement of a remarkable 459% quarter-over-quarter increase in net profits
Microcap stock: Frog Cellsat Limited is a microcap stock that specializes in manufacturing RF equipment and telecom solutions to improve mobile network coverage and capacity for service providers and operators. Recently, the company’s stock price surged by 20 percent, hitting an upper circuit after reporting a remarkable 459.14 percent quarter-over-quarter increase in net profit.
Stock Price Movement
With a market capitalization of Rs. 611.55 crores, Frog Cellsat Limited’s shares soared by 20 percent to reach an upper circuit of Rs. 415.60 per share, up from the previous closing price of Rs. 346.35 per share. The stock has since pulled back and is currently trading at Rs. 395 per equity share.
Q3 FY25 Result Overview
In the third quarter of FY25, Frog Cellsat Limited saw a significant increase in consolidated revenue from operations, rising by 104.01 percent year-over-year to Rs. 91.15 crore from Rs. 44.68 crore in Q3 FY24. Additionally, the company’s EBIDT surged by 386.90 percent to Rs. 22.3 crore in Q3 FY25 from Rs. 4.58 crore in Q3 FY24. The consolidated net profit also saw a substantial increase, reaching Rs. 15.6 crore in Q3 FY25, up by 449.30 percent year-over-year.
Management Outlook
Looking ahead, Frog Cellsat Limited anticipates a 30% revenue growth and a 15% EBITDA margin for FY25. The company is planning to expand its product range, with a focus on high-growth sectors like SFPs and IP cameras to strengthen its market presence.
Order Book
As of December 31, 2024, Frog Cellsat Limited’s order book stands at Rs. 1050 crore, indicating sustained strong demand for its telecom solutions.
Strategic Expansion Plans
Frog Cellsat is poised for growth with the introduction of a new Surface Mount Technology (SMT) line anticipated to be operational by March 2025. This advancement will allow the company to manufacture a range of products, including Small Form-Factor Pluggable (SFP) modules, IP cameras, and Wi-Fi routers under its own brand.
Furthermore, Frog Cellsat is strategically positioning itself to enter the global Active Distributed Antenna System (DAS) market, which is valued at over USD 1 billion. This move comes on the heels of the company’s success in the domestic market and represents a significant opportunity for expansion and increased revenue.
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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.