This small-cap IT company delivered fantastic returns of over 150% in just a year; do you hold it?

Ksolves India Limited has delivered multibagger returns to its shareholders in the last one year. During this period, the company’s share price jumped from Rs 449.60 on October 17, 2022, to Rs 1,148.30 on October 16, 2023, an increase of about 150% in a one-year holding period.

An investment of Rs 1 lakh in the shares of this company one year ago would have turned to Rs 1.50 lakh today.

Ksolves India Limited has reported a strong second quarter for FY24, with net profit growth of 39.15% to Rs 8.23 crore, compared to Rs 5.92 crore in the same quarter last year. The operating profit also saw a significant increase of 38.97%. The total income for the quarter increased by 40.43% to Rs 25.98 crore, compared to the previous year’s same quarter.

The company has grown significantly in terms of clients, revenue, and headcount. It has 55+ IT services clients across 25+ countries, with the top 5 clients contributing 33% and the top 10 contributing 49%. The company focused on generating revenue per employee by enhancing its technology mix and billing rates.

To support its growth, the company expanded its team and shifted to a bigger office space in Noida. The headcount increased from 413 to 451, with maximum resource utilization. The company also faced a lower attrition rate this quarter and focused on hiring senior-level resources.

Ksolves India Limited, incorporated in 2014, is engaged in software development, enterprise solutions, consulting & providing IT solutions to companies across sectors such as Real Estate, E-commerce, Finance, Telecom and Healthcare etc. Ksolves curates & develops the best possible software solutions. It is servicing clients across several counties with 410+ in-house technology experts.

Today, the stock opened at Rs 1,153, with a high and low of Rs 1,153.75 and Rs 1,147, respectively. The stock ended the trading session at Rs 1,148.85, up by 4.55%. The stock has a 52-week high of Rs 1,447.60 and a 52-week low of Rs 356.65. The company has a ROCE of 171% and an ROE of 128% with a market capitalisation of Rs 1,361 crore.

The stock has shown strong growth and investors should keep a close eye on this stock.

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.