Record Date Fixed In September For 1:4 Bonus Issue; At RoE Of 15%, Smallcap IT Stock Below Rs 300, In Focus

IT company, Saksoft witnessed heavy selling pressure on August 8th after the company announced its Q1 results. Among the positive factor is that Saksoft has also announced a bonus issue of 1:4 ratio. YTD, the stock is down by 10% on BSE.

After market hours of August 8th, Saksoft share ended at Rs 288.80 apiece, down by 3.75% on BSE with market cap of Rs 2,888.00 crore.

The stock's 52-week high and low is at Rs 399.40 apiece and Rs 210 apiece respectively. The smallcap has a PE ratio of 100.12x, while return on equity is healthy is at 15.14%.

Saksoft Bonus Issue:

The company has announced a bonus issue of 1:4. The ratio would mean that Saksoft will issue one new bonus equity share of Re. 1/- each fully paid up for every four existing equity shares of Re. 1/- each fully paid up subject to the approval of shareholders through Postal Ballot.

The company fixed Friday, 13th September 2024 as the Record date to determine the eligibility of shareholders to receive bonus shares.

As per the regulatory filing, the bonus equity shares will be issued out of the Free Reserves and Securities Premium account available based on Audited Financial Statements as of 31st March 2024.

Saksoft said that free reserves and a Security Premium of Rs. 2,65,10,250 are required for the implementation of the Bonus Issue.

The company plans to allot bonus issues within two months from the date of approval of the board, which would arrive on October 6, 2024.

Saksoft Results:

In Q1FY25, the company posted a total income of Rs 203.78 crore, compared to Rs 185.03 crore in the same quarter a year ago.

While PAT is at Rs 25.58 crore in the first quarter for FY25, as against PAT of Rs 25.15 crore in Q1 of FY24.

Basic earnings per share stood at Rs 2.53.

A leading computer and software services provider, Saksoft offers digital transformation solutions in Europe, the United States, the Asia Pacific, and internationally. The company is engaged in digital intelligence framework, Agile/waterfall/hybrid delivery models, and training and support among other services.

Earlier, in June, Saksoft announced the acquisition of Augmento Labs, a digital engineering company headquartered in Bangalore, Karnataka, in a strategic move to enhance its capabilities and presence in the product engineering space.

Saksoft stated that it anticipates the transaction will be finalized by the end of the current quarter, pending customary closing conditions. This acquisition will significantly enhance Saksoft's ability to offer comprehensive solutions across the digital engineering spectrum across our focus verticals.