scorecardresearchKsolves India: This small-cap IT stock listed in 2020 is trading over 800%

Ksolves India: This small-cap IT stock listed in 2020 is trading over 800% above its IPO price

Updated: 06 Jul 2023, 03:05 PM IST
TL;DR.

Ksolves India is an IT company that specialises in providing a range of software development and IT consulting services to various industries, including e-commerce, healthcare and finance.

Considering the current market price of  <span class='webrupee'>₹</span>893.80, the stock is trading over 800% above its issue price, making it one of the most successful IPOs to date.

Considering the current market price of 893.80, the stock is trading over 800% above its issue price, making it one of the most successful IPOs to date.

Investing in the stock market can yield substantial rewards when the right stocks are chosen, but it can also lead to disappointing outcomes if investments are made unwisely. Fortunately, shareholders of Ksolves India have reasons to celebrate, as the shares of this small-cap IT company have surged by a whopping 800% since their listing.

Ksolves India is an IT company that specialises in providing a range of software development and IT consulting services to various industries, including e-commerce, healthcare, and finance.

It has a strong expertise in providing services in niche technology verticals like Big Data, Machine Learning, Artificial Intelligence, Salesforce, and it also has a strong presence in developing and distributing apps on Odoo and Magento platforms.

The company's shares got listed on the bourses on June 06, 2020, at a price of 106.90, a premium of 6.9% compared to the issue price of 100.

Within a year of its listing, the stock witnessed a significant rally, soaring to 263 apiece, delivering a stellar gain of 146%. Further, the stock continued its upward trajectory, reaching 352 by the end of June 2022.

Considering the current market price of 893.80, the stock is trading over 800% above its issue price, making it one of the most successful IPOs to date.

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Stock Price chart of Ksolves India.

Note: The stock of Ksolves India underwent a 3:1 bonus issue in 2021. The prices mentioned above have been adjusted to account for this bonus issue.

In terms of financials, the company clocked a net profit of 7.34 crore in Q4FY23, indicating a rise of 66% YoY and 19% QoQ. The revenue from operations during the quarter came in healthy at 22.74 crore, an increase of 60% compared to 14.23 crore in Q4 FY22, while the operating profit jumped by 56.5% YoY to 9.28 crore.

Further, its EPS (Earnings Per Share) improved to 6.19 in Q4 from 3.73 in the year-ago quarter. At the prevailing price, the stock trades at a price-to-earnings multiple of 43.2x, which is much lower compared to the industry P/E of 57.1x.

On the financial ratio front, the company has zero debt, Trendlyne data showed, while it had an ROE and RoCE of 110.54% and 138.30%, respectively, in FY23. The company spends most of its earnings on dividend payments, as the payout ratio stands at 74%. In the past one year, the company declared an equity dividend amounting to 15.50 apiece.

As of March 2023, the promoter owns 58.9% of the shares in the company, while foreign portfolio investors own 0.2%. Regular shareholders own 40.9%.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

 

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10 small cap IT stocks returned up to 150% in the last 6 months
First Published: 06 Jul 2023, 03:05 PM IST