3i Infotech Bags Rs 19.34 Cr Contract from Bajaj Electricals!

3i Infotech Ltd, a global Information Technology company committed to expediting business transformation, has secured a contract from Bajaj Electricals Limited for various managed infrastructure services. These services include end-user support, data centre and network management, cloud management, database management, as well as IT application support and rollout services. 

The contract’s total value amounts to approximately Rs 18.74 crore, distributed over five years, with an additional one-time roll-out service fee of about Rs 60 lakh. Consequently, the overall contract value reaches Rs 19.34 crore. 

Today, the shares of 3i Infotech Ltd plunged 4.48%, down from Rs 33.91 per share to Rs 32.39 per share. The company’s stock has a 52-week high of Rs 54.20 and a 52-week low of Rs 25.93. Impressively, the stock has delivered exceptional returns, growing by over 250% within two years and an astounding 1,100% within three years. 

3i Infotech is a prominent Global Information Technology Company that emerged as a back-office processing company under ICICI Ltd. The company’s operations revolve around two main categories: IT solutions and transactions. It maintains a strong presence in over 50 countries.

The company operates in two main segments: IT Solutions and Transaction Services. In IT Solutions, they provide services like Cloud Computing, Platform Solutions (BPaaS and KPaaS), Application Automation and Analytics, Infrastructure Management, Application Development, Digital Transformation Consulting, and FutureTech Business services. The Transaction Services segment, branded as “NuRe,” includes Business Process Services (BPS) and Knowledge Process Outsourcing (KPO) for efficient management of back-office operations. 

With a market capitalization of Rs 550 crore, 3i Infotech recently released its annual results for FY23. These results indicate an 8% increase in net sales, totalling Rs 729 crore in FY23, compared to FY22. Notably, the company achieved a net profit of Rs 1 crore in FY23, a significant improvement compared to the net loss of Rs 57 crore in FY22. 

Currently, the stock exhibits a price-to-earnings ratio (PE) of 10.68x, while the sectoral PE stands at 36.60x. As a result, investors are advised to monitor this small-cap stock with the potential for substantial growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.