Multibagger IT Stock Trading 7% Near Its 52W High: Should You Bet?

In Friday's closing session, Adroit Infotech Ltd, a microcap IT company, reported a market cap of Rs 61.17 Cr. Adroit Infotech is a specialist SAP consulting firm with almost two decades of expertise in assisting organisations with internal process improvements utilising SAP products and solutions. The shares of Adroit Infotech closed on Friday on the BSE at Rs 30.18 apiece up by 13.72% over the previous close of Rs 26.54. The stock made a 52-week-high of Rs 32.50 on (15/12/2022) and a 52-week-low of Rs 14.25 on (21/10/2022), indicating that at the current market price the stock is trading 7.68% below the 1 year high and 111.78% above the 1 year low.

Adroit Infotech Financials

On a consolidated basis, the firm recorded net sales of Rs 5.92 crore in the June 2023 quarter, which is a rise of 1.9% from Rs 5.81 crore in the corresponding quarter in the previous year. Its net profit was Rs. 0.43 crore in the first quarter of FY24, down 79.91% from Rs. 2.16 crore in the same quarter of FY23. Its EBITDA for the June 2023 quarter was Rs. 0.91 crore, down 63.45% from Rs. 2.49 crore in June 2022 quarter.

The firm raised a total of 20 lakh shares at a price of 25 throughout the period that ended in 2023 through preferential allotment. The promoter holds 10 lakh of these shares and Rs 5 Cr raised in total as a result of this transaction. 14 lakh share warrants were converted into equity shares at a cost of 25 rupees each. The total amount involved is Rs. 3.5 Crores. In another transaction, 31 lakhs of share warrants for Rs. 25 each were exchanged at a discount of 25%. In this transaction, Rs. 1,93,75,000 was raised.
In FY24, the company aims to achieve revenue growth in the range of 25% to 30% and EBITDA growth in the range of 25% to 28%.

Adroit Infotech Share Price Target

Commenting on the share price target of Adroit Infotech, AR Ramachandran from Tips2trades said "Adroit Infotech looks bullish but also overbought on the Daily charts with next resistance at 32.5. Investors should be booking profits at current levels as a daily close below support of 27.5 could lead to a target of 24 in the near term."

Disclaimer

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