IT stock under ₹50 jumps 5% after promoter increases stake in the company

The shares of the prominent software products manufacturer gained up to 5 percent after the company’s promoter increased its holding from 47.80 percent to 52.21 percent. 

Price Movement 

With a market capitalization of Rs 46.51 crore, the shares of Quicktouch Technologies Limited were trading at Rs 43.00 per share, increasing around 1.90 percent as compared to the previous closing price of Rs 43.00 apiece. 

Reason for rise 

The shares of Quicktouch Technologies Limited have seen bullish movement after the Promoter Group increased its stake from 47.80 percent to 52.21 percent by converting 10 lakh warrants into equity. Led by MD Gaurav Jindal, this move reflects strong confidence in the company’s growth. The conversion complied with SEBI regulations and received Board approval. 

Moreover, the increased promoter shareholding highlights the company’s strong growth strategy and better alignment with shareholders. This move is set to boost investor confidence and enhance the capital structure, supporting the company’s expansion plans. 

Management Comment 

Commenting on the development, Mr. Gaurav Jindal stated: “The increase in promoter stake is a testament to our deep confidence in the company’s future. We believe in the strong fundamentals of Quicktouch Technologies Limited and remain committed to its long-term growth. This step not only enhances financial stability but also sends a positive signal to our investors and stakeholders.” 

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Financial condition 

Analyzing the company’s financial performance, revenue shrank by 61 percent from Rs 41.73 crore in Q3FY24 to Rs 15.99 crore in Q3FY25, during the same time, net profit shrunk by 71 percent from Rs 2.17 crore to Rs 0.62 crore. 

It has a P/E ratio of 8.67, compared to the industry’s P/E ratio of 29.6, indicating that the stock is trading at a lower price, and the stock is undervalued. Additionally, the company’s debt-to-equity ratio stands at 0.07. 

Ratio analysis 

The company’s critical ratios show that the return on equity decreased from 49.14 percent in FY22-23 to 8.14 percent in FY23-24, while the return on capital employed decreased from 60.87 percent to 10.74 percent. The net profit margin (NPM) for fiscal year 23-24 is 5.54 percent.

Shareholding pattern 

In the company’s recent shareholding pattern, the Promoters of the company own 47.80 percent while Retail shareholders own a 52.20 percent stake in the company and domestic Institutional Investors own a 0 percent stake. 

Company Profile 

Quicktouch Technologies Limited is an India-based information technology (IT) company. The Company is in the business of providing software, IT solutions, and consulting services, IT product/software development, software commercial training, and Web designing. 

Written by Abhishek Singh

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