Penny stock hits 5% upper circuit after signing an MoU for software devpt. & cloud services 2024
Shares of this penny stock hit the 5 percent upper circuit on Monday after the company signed a Memorandum of Understanding (MoU) for the execution of software development and cloud services for a period of two years.
With a market capitalization of Rs 80.31 crores, the stocks of Orchasp Limited opened their trading hour on Monday hitting the 5 percent upper circuit at Rs 5.36 and closed at the same share price. The locked price was also recorded as the company’s fresh 52-week high price.
Such sharp movements in the company’s stock price were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has signed a MoU with “S.A Tech Software India Limited” for the execution of software development and cloud services for a period of two years.
S.A Tech is a Contracting and Services company engaged in the business of consulting and services on IT and cloud services.
During the recent financial quarters, the company’s prime business indicators showed a recovery in numbers with the operating revenues rising from Rs 45 lakhs during Q1FY24 to Rs 60 lakhs during Q2FY24, and the latter, during the same period, rose from Rs 25 lakhs to Rs 34 lakhs.
In addition, the company’s margin ratios have shown improvements with the operating profit margins taking a shift from 2.13 percent during FY21-22 to 5.34 percent during FY22-23.
The latest shareholding data, as per the December 2023 quarter, portrays the company’s Promoters holding a 24.89 percent stake and the remaining 75.11 percent stake in the company is held by the Public (retail) investors.
Orchasp Limited is a software Solutions and IT services company based in India serving various sectors including healthcare, telecom, engineering, retail, etc. It is engaged in custom-built software development, System Integration Services (SIS), network and surveillance, mobile applications, cloud-based solutions, etc.
