Small-Cap IT Company Wins Major Contract in Karnataka
A small-cap IT firm specializing in web application development, mobile app development, AI & ML development, ChatBot development, and product prototyping has secured a significant contract worth Rs 70 crore from Satra Services and Solutions Private Limited. This contract involves the computerization of Centrally Sponsored Primary Agricultural Co-operative Credit Societies (CSPCP) in Karnataka, with the IT company acting as a subcontractor.
Details of the Rs 70 Crore Contract
The contract, inclusive of all applicable taxes, will be executed in Karnataka, beginning on June 11, 2024. Although the exact end date is not provided, the project is expected to be completed within a year. Payment terms have been agreed upon in the work order, ensuring timely payments throughout the project’s duration.
Impressive Share Performance
On Friday, Sahana Systems Limited, the IT firm in question, saw its shares close at approximately Rs 1,443 each, with a market capitalization of Rs 1,154 crore. The stock has demonstrated an extraordinary multibagger return of around 143% over the past six months, also hitting the upper circuit on the same day.
Strong Financial Performance
Quarterly Results
In Q4 FY24, Sahana Systems Limited reported a substantial increase in revenue and net profit. Revenue soared to Rs 32 crore from Rs 17 crore in the previous quarter, while net profit climbed to Rs 11 crore from Rs 4 crore.
Annual Results
For the fiscal year FY24, the company achieved a revenue of Rs 54 crore, up from Rs 24 crore in the prior year. Net profit also showed significant growth, reaching Rs 15 crore compared to Rs 6 crore the previous year.
Shareholding Pattern
The shareholding pattern of Sahana Systems Limited reveals that promoters hold a substantial 62.88% of the company, with Domestic Institutional Investors (DIIs) owning 0.60%. The remaining 36.52% is held by public or retail investors.
Conclusion: A Stock to Watch
Given its robust financial performance and impressive stock gains, investors should keep a close eye on this small-cap multibagger stock.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as investment advice.
