IT stock jumps 9% after receiving order from the Ministry Of Education

A leading workforce solutions provider has secured a key contract from a reputed educational institution under the Ministry of Education. Set to begin in April 2025, this agreement marks a significant step in expanding its service portfolio. 

Price Action

During Thursday’s trading session, ITCONS E-Solutions Ltd shares hit an intra-day high of Rs.507.40 per share, marking an 8.9 percent increase from the previous close of Rs.505.95 each. The share has since retreated and is currently trading at Rs.504.90 per share. 

Contract Specifications

ITCONS E-Solutions Ltd has secured a new work order from Dr. Harisingh Gour Vishwavidyalaya, Sagar (M.P.), under the Ministry of Education, Department of Higher Education. The contract involves providing 23 manpower services for the Institute of Engineering and Technology on a contractual basis for one year.  

The service period will commence on April 1, 2025, and conclude on March 31, 2026. The total contract value, inclusive of all applicable taxes, stands at Rs.51.37 lakhs. This work order marks another significant achievement for the company, further strengthening its association with Dr. Harisingh Gour Vishwavidyalaya.

Recent Developments

The company has recently secured a Rs.3 crore manpower services contract from the Central Warehousing Corporation and a Rs.45 crore technical services order from Proteam Advisory Solutions LLP. It is also collaborating with UNi B Solutions (USA) for innovative toll processing solutions for NHAI. Additionally, it has onboarded 120 employees for City Mall, with an expected annual billing of Rs.3.88 crore, and secured consulting services orders related to IP asset management.

Also read: Defence stock jumps after signing ₹6,900 Cr contract for Advanced Artillery Gun Systems

Earnings Report

In its latest financial update, ITCONS E-Solutions Limited reported a consolidated revenue of Rs.17.54 crores for  H1 FY25, marking a 37.3 percent increase from Rs.12.78 crores in H1 FY24. Additionally, net profits also increased to Rs.1.29 crores, reflecting a 67 percent rise compared to Rs.0.77 crores during the same period last year.

Ratio Analysis

The company has a Return on Capital Employed (ROCE) of 10.54 percent and a Return on Equity (ROE) of 7.56 percent. Its Price-to-Earnings (P/E) ratio stands at 133.5, higher than the industry average of 40.93. Furthermore, the company maintains a current ratio of 2.7, a debt-to-equity ratio of 0.12, and an Earnings Per Share (EPS) of Rs.3.79. 

Business Overview

ITCONS E-Solutions Limited, established in 2007 and headquartered in Noida, specializes in recruitment, staffing, and technology solutions. The company offers IT staffing, general staffing, recruitment process outsourcing, permanent hiring, payroll services, managed IT services, and product installation solutions. It serves a wide range of industries, including IT, healthcare, manufacturing, engineering, logistics, media, finance, and government sectors.

Written by – Siddesh S Raskar

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