September 19 Record Date For 1:4 Bonus Shares: A Wealth Creating IT Stock For Investors?

Saksoft Limited is a small-cap IT company that offers technology services such as application engineering, quality assurance and testing, data analytics, cloud, infrastructure, and cyber security to companies in the fintech, logistics & transportation, health, and utilities sectors. September 19 has been set as the record date for bonus shares, which the Board of Directors has recommended to be issued in a ratio of 1:4. With a market valuation of Rs 2,929 Cr, Saksoft's shares ended Tuesday's trading session on the BSE at Rs 292.90 per share.

Saksoft Bonus Shares

"In compliance with the Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) 2015, the Company has revised its Record date from Friday, September 13, 2024 to Thursday, September 19, 2024, for the purpose of ascertaining the eligibility of Shareholders entitled for issuance of fully paid up Bonus Shares of the Company in the proportion of 1 (One) new fully paid up equity share of Re. 1/- each for every 4 (Four) fully paid up existing equity shares of Re. 1/- each held, subject to the approval of Members by way of Postal Ballot through remote e-voting," said Saksoft in a stock exchange filing.

Saksoft Financials

Saksoft's consolidated net profit climbed by 1.75% to Rs 25.59 crore in the June 2024 quarter compared to Rs 25.15 crore in the June 2023 quarter. In the quarter that ended in June 2024, sales increased by 9.56% to Rs 201.01 crore, compared to Rs 183.47 crore in the quarter that ended in June 2023. EBITDA increased by 4.77% from Rs. 36.09 crore in Q1FY24 to Rs. 37.81 crore in Q1FY25.

Mr. Aditya Krishna, Chairman and Managing Director, said: "We have re-organized our business into 4 high growth business units making us more market facing and customer focused. These business units are Fintech, Hitech and Media and Utilities, Transport and Logistics, and Retail/Ecommerce. Each business unit will be headed by a leader responsible for ensuring that the company stays abreast of market trends and disruptions as well as revenue and margin growth. In addition, this change will help us differentiate our offerings as a Digital specialist based on domain in a fast commoditizing industry."

Saksoft Share Price Target

"IT software firm Saksoft Limited is currently priced at Rs. 292.90; the stock has seen a negative 7.8% return over the past year. The company's key financial metrics include a PE ratio of 31.68, higher than the sector PE of 22.92, indicating a premium valuation. Meanwhile, the stock's P/B ratio stands at 6.06, which represents six times its book value. Meanwhile, Saksoft has offered a low dividend yield of 0.25% and delivered a ROE of 19.03%. The stock has displayed high volatility, with a 52-week range of Rs. 209-402. Currently, the RSI indicators show a balanced outlook, with daily and weekly RSI at 52 and monthly at 61. With a moderate buying opportunity between Rs. 275-290, traders and investors may set a price target between Rs. 330 and Rs. 450 for this stock. Meanwhile, they should set their stop loss at Rs. 230 to limit exposure. According to the market situation, I advise investors to consider holding this stock for 2 to 8 months due to the potential for short- to medium-term gains," V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) recommended.

"Saksoft Ltd stock price is sideways to bearish on the Daily charts with strong resistance at 308. A Daily close below support of 286 could lead to a target of 264 in the near term," said A R Ramachandran, Independent Research Analyst.