Debt free IT stock with low PE & high ROE declares dividend, FII stake up in Q3
With a market valuation of ₹505 Cr, Ksolves India is a small-cap company with operations in the IT industry. With experience in Big Data, Data Science, Salesforce, DevOps, Java & Microservices, OpenShift, Penetration Testing, etc., Ksolves India Ltd is a prominent software development company. In addition to being a debt-free company, it has declared a 3rd interim dividend for the financial year 2022-23, which is like icing on the cake for the eligible shareholders.
The company has said in a stock exchange filing that its Board of Directors has “inter-alia considered, recommended and declared the 3rd interim dividend of Rs.3/- (Three rupees only) per share for the financial year 2022-23. The interim dividend shall be paid within the statutory time limit to the equity shareholders of the Company, whose names would appear on the Register of Members of the Company on March 04, 2023, being the Record date fixed for eligibility of the Dividend.”
During Q3FY23, the company reported revenue from operations of ₹20.55 crore, up by 68.4% YoY from ₹12.20 Cr in Q3FY22. The company said its net expenses reached ₹12.20 Cr in Q3FY23, up by 70.4% YoY from ₹7.16 crore recorded in Q3FY22. Ksolves India said EBITDA reached ₹8.35 crore in the quarter ended December 2022, up by 65.7% from ₹5.04 recorded in the quarter ended December 2021.
The profit before tax (PBT) stood at ₹8.24 Cr in Q3FY23, up by 55.4% YoY from ₹5.30 Cr in the year-ago quarter, whereas the company’s net profit reached ₹6.18 Cr in Q3FY23 compared to ₹4.02 Cr recorded in Q3FY22, representing a YoY growth of 53.6%. The EPS of Ksolves India stood at ₹5.21 in December 2022 quarter, up from ₹3.39 reported in Q3FY22, up by 53.6% YoY.
On Friday, the shares of Ksolves India closed on the NSE at ₹429.90 apiece, down by 2.59% from the previous close of ₹441.35. The stock recorded a volume average of 17,222 shares compared to the 20-Day average volume of 16,691 shares. The stock touched a 52-week-high of ₹495.00 on (28-Oct-2022) and a 52-week-low of ₹356.00 on (16-Nov-2022) and in the last 1 year the stock has given a CAGR return of 30.90%.
Ksolves India has a debt-to-equity ratio of zero marking it as a debt-free company in addition it has a price-to-earning (P/E) ratio of 23.4, lower than its sector PE ratio of 50.2 and a high Return on Equity(ROE) of 106.12% higher than its peers such as Mphasis, Tata Elxsi, L&T Technology, Persistent Systems, Oracle Financial Services Software Ltd, Coforge and PB Fintech.
A promoter shareholding of 58.94%, an FII stake of 0.16%, and a public stake of 40.89% were reported for the company during Q3FY23. Promoters’ holdings remained constant at 58.94% in the December 2022 quarter, while FII/FPI holdings rose from 0.00% in the September 2022 quarter to 0.16% in the December 2022 quarter, the number of FII/FPI investors rose from 1 in Q2FY23 to 2 in Q3FY23 and institutional investors’ holdings increased from 0.00% in Q2FY23 to 0.16% in Q3FY23, as per the data of Trendlyne.
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