IT stock hits upper circuit after signing ₹10,000 Cr MoU with Maharashtra Govt

Shares of a company engaged in providing software consultancy services and computer facilities management activities hit a 2 percent upper circuit on BSE during Monday’s trading session, after signing MoU with Maharashtra Govt. for setting up a manufacturing facility with an investment of Rs. 10,000 crores.

Price Movement

With a market cap of Rs. 390 crores, the shares of Artificial Electronics Intelligent Material Limited hit a 2 percent upper circuit at Rs. 229.75, compared to its previous closing price of Rs. 225.25.

The stock delivered multibagger returns of nearly 1,977.3 percent in one year, while around 29.5 percent of negative returns in the last one month.

What’s the news

According to the latest regulatory filings with the BSE, Artificial Electronics Intelligent Material Limited has signed a Memorandum of understanding (MoU) with the Government of Maharashtra to set up a manufacturing facility for Saphire Ingots and Wafers at Mihan SEZ, Nagpur, Maharashtra. The project will involve an investment of Rs. 10,000 crores over the next 5 years.

The Government of Maharashtra will assist the company in obtaining the necessary permissions, registrations, approvals, clearances, and fiscal incentives from the relevant state departments.

Sapphire ingots are aluminium oxide crystals used to produce sapphire substrates, while sapphire wafers are crucial components in the semiconductor and optoelectronics industries, due to their unique material properties.

Sapphire ingots are used to produce sapphire substrates for semiconductor circuits, lasers, and endoprostheses, as per a few sources.

Also read: PSU stock crashes after reporting 44% YoY decline in net profits

Financials

Artificial Electronics Intelligent Material experienced a significant growth in its revenue from operations, showing a year-on-year increase of around 905.5 percent from Rs. 0.36 crores in Q2 FY24 to Rs. 3.62 crores in Q2 FY25.

Similarly, its net profit increased during the same period from Rs. 0.08 crores to Rs. 0.21 crores, indicating an impressive rise of nearly 162.5 percent YoY.

About the company

Artificial Electronics Intelligent Material Limited, previously known as Datasoft Application Software (India) Limited, is mainly engaged in the business of developing and providing software consultancy services.

Written by Shivani Singh

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