IT stock hits 5% upper circuit after signing agreement with US-based company

The shares of a Microcap Tech stock engaged in application development, cloud infrastructure, software quality assurance, generative AI, machine learning, data science and analytics, etc  hits 5 percent upper circuit after executing an agreement worth Rs 2 Crores. 

Share Price Movement

The shares of  S A Tech Software India Ltd, with a total market capitalization of Rs 82.26 Crores, hit a 5 percent upper circuit at Rs 63.55 per share on Wednesday’s trading session. As of noon, the shares were trading at Rs 63.30 per share which was 4.54 percent higher than the previous closing price of Rs 60.55. 

What Happened 

As per a press release dated 18, February 2025, S A Tech Software India Ltd has signed a two-year agreement with an Indian branch of a US-based furniture manufacturing company that is expanding in India. The total value of this agreement is around Rs 2 Crores. Additionally, the company confirms that this agreement with a domestic entity is not a related-party transaction. 

Financials

The company’s total revenue increased by 61 percent YoY from Rs 31.86 Crores in H1FY24 to Rs 51.15 Crores in H1FY25. Their PAT grew by 28 percent YoY from Rs 3.52 Crores to Rs 4.51 Crores over the same period. And on the operating level, EBITDA rose 43 percent YoY from Rs 4.96 Crores to Rs 7.08 Crores. 

Also read: WOL 3D India in green after receiving $390,000 international order for 3D Printer

Previous Agreement

As per a press release dated 14, January 2025, the Company has executed an agreement with a Finland-based Industrial Automation Client for Software Development. The aggregate value of the aforesaid agreement for one year is EURO 3,20,643.84. 

Indian IT Industry 

The IT & BPM sector has become a major economic driver for India, contributing 7% to GDP in FY24. The industry is expected to reach US$ 350 billion by 2026, contributing 10% to GDP. IT export revenue rose 9% to US$ 194 billion in FY23, with FY24 exports at US$ 199 billion. 

Major Clients

Some of their marquee clients include RBI, TATA Motors, ABB, DELL, Whirlpool, Red Hat, Societe Generale, Kohler, and many more. 

About SA Tech Software Ltd

SA Tech Software Ltd  is an IT consulting Subsidiary Company of foreign body corporate SA Technologies Inc, USA. It  provides end-to-end IT services, including application development, mobile app development, cloud infrastructure, software quality assurance, generative AI, machine learning, IoT solutions, and data science and analytics. The company has a global presence across Canada, USA, Mexico, Singapore and India. 

Written By Adhvaitha Nayani

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post IT stock hits 5% upper circuit after signing agreement with US-based company appeared first on Trade Brains.