Aptech hits over 3-year high ahead of board meet to launch new online biz

Shares of Aptech hit an over three-year high of Rs 304 as they rallied 5 per cent on the BSE in intra-day trade on Tuesday ahead of the board meeting today to conduct the business transactions to introduce or launch a new online business for the company.

The stock of information technology (IT) services provider was trading at its highest level since April 2018. It had hit a record high of Rs 449 on December 11, 2007.

Ace investor Rakesh Jhunjhunwala and his family together own 44.5 per cent stake in the company, the June 2021 shareholding pattern data shows.

In the past six trading days, the stock of Aptech has rallied 23 per cent after the company on August 23 informed the stock exchanges that the meeting of the board of directors of the company is scheduled on Tuesday, August 31, 2021, inter alia to conduct the business transactions to introduce or launch a new online business for the company.

Aptech in the financial year 2020-21 (FY21) annual report said that the ‘Digital Pivot’ implemented by the company mitigated the pandemic’s impact to a great extent and the cost rationalisation initiatives ensured a profitable performance during FY2020-21. These measures would continue to help the company mitigate the impact from the closure of centres for in-classroom training sessions, it added.

"The consistent trend of quarter-on-quarter (QoQ) increase in enrolments seen over FY2020-21, however, may be at risk due to the second wave seen across the country in the months of March and April 2021. But the expected stabilisation of the COVID case numbers in a couple of months and the restricted use of lockdown as a control measure means the economic impact may be much lesser than last year," it added.

This combined with the upturn in economic activity may translate into a better operating environment and outlook for the company in the coming financial year though the downside risks remain, the company said.