Stock of this IT company has zoomed 66% in 6 weeks, hits record high

Shares of Expleo Solutions hit a new high of Rs 1,746, on rallying 15 per cent on the BSE in Wednesday’s intra-day trade in an otherwise weak market. In the past six weeks, the stock of information technology (IT) consulting software company has zoomed 66 per cent, as compared to 3.4 per cent decline in the S&P BSE Sensex.

Expleo Solutions on December 8, 2021 said the increase in volume in equity shares of the company is purely based on market conditions and absolutely market driven, and the company is no way connected with any such increase in volume.

Expleo Solutions is a technology services company specialises in providing services for Banking, Financial and Insurance (BFSI) Software, and in enabling automation, digital transformation to its clients. The company has served 150 plus customers in APAC, USA, UK, Europe and Middle East.

Digital and specialised testing services accounted over 35 per cent of the company’s total business compared to around 25 per cent in the beginning of the financial year. The company added seven new clients in July-September quarter (Q2FY22). Offshore business contribution continues to grow and is at around 65 per cent of the revenue compared to 49 per cent, year on year.

“The integration of the unlisted companies is progressing well, we have received the nod from the Stock Exchanges and SEBI. We have filed now with NCLT and expect to close this transaction before end of the fiscal year,” the company’s management said while announcing Q2 results on November 10, 2021.

For the first half (April to September) of the financial year 2021-22 (H1FY22), Expleo Solutions posted 23.9 per cent year on year (YoY) growth in its consolidated operating revenue at Rs 185 crore. Profit after tax (PAT) however, was down 9 per cent YoY at Rs 24.50 crore.

As of September 30, 2021, Expleo Solutions had a total of 10.25 million outstanding equity shares. Of these promoters held 56.17 per cent stake in the company. The remaining 43.83 per cent holding were with individual shareholders (29.77 per cent), bodies corporate (7.94 per cent) and Rajasthan Global Securities Private Limited (4.03 per cent), the shareholding pattern data showed.

In past six months, the stock soared 162 per cent, as compared to 9.4 per cent gain in the S&P BSE Sensex. While, in one year, it rallied 269 per cent, against nearly 25 per cent surge in the benchmark index.