Multibagger IT Stock jumps 11.78% after it reports a 451% increase in net profit

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Multibagger IT Stock jumps 11.78% after it reports a 451% increase in net profit
Credit: © Reuters.

The shares of Mold-Tek Technologies gained 11.78% after the company reported robust results for the October to December quarter of 2022. Its shares were trading at ₹ 174.10 apiece, up 1.02% on the National Stock Exchange, at 01:10 AM on Tuesday.

The company’s revenue from operations increased by 71.41% to ₹ 40.71 crores in the December quarter (Q3FY23) from ₹ 23.75 crores in the same quarter last year (Q3FY22). In addition, its profit after tax increased by a whopping 451.50% to ₹ 9.21 crores in the December quarter (Q3FY23) from ₹ 1.67 crores in the corresponding quarter last year.

“Improved quality with timely execution has resulted in Tier 1 clients offering larger projects with good hourly rates,”the company said in an exchange filing.

“We are focusing on Electric Vehicles domain and our association with the Tier 1 and 2 clients has contributed to the Mechanical division growth in last few quarters. In the upcoming quarters we are taking measures to increase the capacity both in-house and also through sub-contract to execute more number of orders we are receiving from clients in Europe and Mexico,” it added.

Further, it said that connection design and member design capacities have been created and it hopes to enhance its revenue and profitability with its entry into high value engineering services.

Mold-Tek Technologies has given multibagger returns of 111.80% in the past year. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 2.12 lakhs today!

Mold-Tek Technologies is a small-cap company with a market capitalization of ₹ 487 crores. It operates in the IT industry and is a global leader in providing engineering and technology solutions.

The company has an ideal return on equity of 19.88% and an ideal debt-to-equity ratio of 0.08. Its shares were trading at a price-to-earnings ratio (P/E) of 30.95, which is significantly higher than the industry P/E of 9.41, indicating that it might be undervalued as compared to its peers.

Written by Simran Bafna

The post Multibagger IT Stock jumps 11.78% after it reports a 451% increase in net profit appeared first on Trade Brains.

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