SA Tech Software India Ltd Hits 5% Upper Circuit After Securing Rs 2 Crore Agreement
In a significant boost to its growth trajectory, SA Tech Software India Ltd, a microcap IT firm specializing in application development, cloud infrastructure, generative AI, and data analytics, hit the 5% upper circuit in Wednesday’s trading session after signing a lucrative agreement worth Rs 2 Crores.
Stock Performance
The company’s market capitalization stands at Rs 82.26 Crores, and the stock saw a sharp rise following the announcement.
- Stock price surged to Rs 63.55, hitting the 5% upper circuit.
- By noon, the stock was trading at Rs 63.30, up 4.54% from its previous close of Rs 60.55.
The rally highlights investor confidence in the company’s expanding business footprint.
New Agreement: A Growth Catalyst
As per the press release dated February 18, 2025, SA Tech Software India Ltd has inked a two-year agreement with an Indian branch of a US-based furniture manufacturing company. The deal, valued at Rs 2 Crores, is expected to strengthen the company’s financial position.
The company has also clarified that this agreement is not a related-party transaction, ensuring transparency and compliance with regulatory standards.
Robust Financial Performance
SA Tech Software India Ltd has reported strong financial growth in the first half of FY25:
| Metric | H1FY24 | H1FY25 | YoY Growth |
|---|---|---|---|
| Total Revenue | Rs 31.86 Cr | Rs 51.15 Cr | +61% |
| PAT (Net Profit) | Rs 3.52 Cr | Rs 4.51 Cr | +28% |
| EBITDA | Rs 4.96 Cr | Rs 7.08 Cr | +43% |
This remarkable 61% YoY revenue growth showcases the company’s increasing demand for its services and its ability to secure high-value contracts.
Previous International Deal Strengthens Portfolio
SA Tech Software India Ltd is no stranger to high-value contracts. On January 14, 2025, the company signed a one-year agreement with a Finland-based Industrial Automation Client for Software Development, with a total contract value of EUR 3,20,643.84 (approximately Rs 3 Crores).
This international collaboration further enhances the company’s credibility in the global IT sector.
India’s IT Industry: A Booming Sector
The Indian IT & BPM sector continues to be a major growth driver for the country’s economy:
- The sector contributes 7% to India’s GDP (FY24).
- It is expected to reach US$ 350 billion by 2026, contributing 10% to GDP.
- IT export revenue increased by 9% in FY23 to US$ 194 billion, and FY24 exports are projected at US$ 199 billion.
This strong industry outlook bodes well for SA Tech Software India Ltd, which is actively expanding its presence in global markets.
Major Clients: A Testament to Excellence
The company boasts an impressive list of marquee clients, including:
- RBI, TATA Motors, ABB, DELL, Whirlpool, Red Hat, Societe Generale, Kohler, and many more.
Such high-profile clientele underlines the company’s credibility and expertise in delivering high-quality IT solutions.
Company Overview
SA Tech Software India Ltd is a subsidiary of SA Technologies Inc, USA and specializes in:
Application development Mobile app development Cloud infrastructure Generative AI & Machine Learning IoT solutions & Data Science
With a global presence in Canada, USA, Mexico, Singapore, and India, the company is well-positioned for international expansion.
Key Financial Ratios & Market Data
| Metric | Value |
|---|---|
| Market Cap | ₹83.0 Cr |
| Current Price | ₹63.6 |
| 52-Week High / Low | ₹250 / ₹57.6 |
| Stock P/E | 22.5 |
| Book Value | ₹28.1 |
| ROCE (Return on Capital Employed) | 34.4% |
| ROE (Return on Equity) | 38.0% |
| Debt-to-Equity Ratio | 0.33 |
| Intrinsic Value | ₹71.7 |
| Industry P/E | 32.6 |
| RSI (Relative Strength Index) | 20.5 |
| Earnings Per Share (EPS) | ₹4.03 |
| Dividend Yield | 0.00% |
| Promoter Holding | 69.4% |
What’s Next for SA Tech Software India Ltd?
With strong financials, high-value contracts, and a growing presence in the global IT market, SA Tech Software India Ltd is poised for long-term growth. Investors are closely watching the company’s next moves, especially with the Indian IT sector set for significant expansion in the coming years.
The stock’s recent rally, coupled with its robust fundamentals, indicates that SA Tech Software India Ltd could be an emerging player to watch in the microcap IT space.
Will the stock continue its upward momentum? Only time will tell, but for now, SA Tech Software India Ltd is on a solid growth path
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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.