IT stock hits 5% upper circuit after securing ₹139 Cr order for enterprise software and support services

Synopsis:
Esconet Technologies secures a ₹139.29 crore order over three years for enterprise software and support services from a reputed domestic multinational ITeS firm.

This micro-cap stock,  engaged in providing IT services, software development, digital solutions, network infrastructure, and consulting, is engaged in delivering technology-driven business transformation and hit a 5 percent upper circuit after securing a total order worth Rs. 139 crore for enterprise software and support services.

With a market capitalization of Rs. 245.38 crores, the shares of Esconet Technologies Limited hit a 5 percent upper circuit of Rs. 185.95 per share on Wednesday, up from its previous closing price of Rs. 177.10 per share.

Esconet Technologies Limited has announced the receipt of a significant order valued at approximately Rs. 46.43 crores per year, totaling around Rs. 139.29 crores over a three-year period. 

The contract has been awarded by a reputed domestic multinational ITeS corporate house and covers enterprise software licensing and professional support services. This order is a major milestone for the company, reinforcing its expertise and reliability in delivering high-value IT solutions. 

The agreement is structured over three years and will be executed based on customer calls at fixed prices from the next fiscal year, in accordance with the terms and conditions specified in the contract. This order not only strengthens Esconet’s revenue visibility but also positions it strongly within the domestic enterprise IT services market.

Esconet Technologies Limited was incorporated in 2012 and is a leading Indian IT company specializing in system integration focused on IT infrastructure, cloud computing, managed services, and data security.  

The company offers a wide range of solutions, including supercomputing, data center facilities, network security, virtualization, data protection, disaster recovery, and hybrid cloud services. The compnay has notable clientele like the Ministry of Defence, IIT, Bharat Electronics, and Indian Oil Corporation.

Esconet has developed a homegrown brand called HexaData® that manufactures high-end servers, workstations, and storage systems, optimized for AI and machine learning applications, in collaboration with NVIDIA. It has also expanded into cloud services through its wholly owned subsidiary ZeaCloud Services.

Coming into financial highlights, Esconet Technologies Limited’s revenue has increased from Rs. 66 crore in H2 FY24 to Rs. 120 crore in H2 FY25, which has grown by 81.82 percent. The net profit has also grown by 150 percent from Rs. 2 crore in H2 FY24 to Rs. 5 crore in H2 FY25.

Esconet Technologies Limited’s revenue and net profit have grown at a CAGR of 48.29 percent and 91.29 percent, respectively, over the last three years. In terms of return ratios, the company’s ROCE and ROE stand at 18.3 percent and 13 percent, respectively. Esconet Technologies Limited has an earnings per share (EPS) of Rs. 5.26, and its debt-to-equity ratio is 0.01x.

Written By – Nikhil Naik

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