This recently listed IT stock zoomed 101% over IPO price; up 48% in 5 days

Orient Technologies hit a new high of Rs 414, as they 14% in Wednesday's intra-day trade, zooming 101% against issue price of Rs 206 per share.

Shares of Orient Technologies hit a new high of Rs 414, as they rallied 14 per cent on the BSE in Wednesday’s intra-day trade amid heavy volumes on expectations of healthy earnings. 

 

The stock of information technology (IT) enabled services company was quoting higher for the fifth straight trading day, surging 48 per cent during the period. It has more-than-doubled or zoomed 101 per cent against the issue price of Rs 206 per share in 10 weeks. The company made its stock market debut on August 28.

 

At 10:30 am; Orient Technologies was up 11 per cent at Rs 403, as against 0.34 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped nearly four-fold. As many as a combined 4.61 million shares representing 11 per cent of total equity of the company changed hands on the NSE and BSE.

 

Orient Technologies is a leading IT provider specializing in innovative cloud and data management solutions for enterprises. The company’s business operations involve technologically advanced solutions for which the company collaborates with a wide range of technology partners including Dell International Services India Private Limited (Dell) and Fortinet, Inc. (Fortinet) and Nutanix Netherlands B.V. (Nutanix).

 

The board of directors of Orient Technologies are scheduled to meet on November 11, 2024 to consider the unaudited financial results for the quarter and half year ended on September 30, 2024. The board will also consider the proposal of interim dividend on the equity shares of the company for the FY2024-25.

 

For the quarter ended June 2024 (Q1FY25), Orient Technologies had posted a 30.2 per cent year-on-year (YoY) jump in profit after tax at Rs 9.28 crore. Revenue grew 27.32 per cent YoY at Rs 148.84 crore. 

 

Orient Technologies has secured two major projects in the BFSI and Public Sector segments. The first project involves a comprehensive Data Center refresh for a large financial institution, focusing on modernizing both primary and Disaster Recovery data centers. The second project is a Virtual Desktop Infrastructure (VDI) deployment for a public sector organization.

 

The company has partnered with Tableau, a leading data visualization software company, to enhance its capabilities in creating interactive dashboards and visualizations.

 

The company’s diversified end-user industry profile, comprehensive product & service offerings and technology partnership with big players will help in sustainable growth for the company, according to SBI Securities. However, the brokerage firm believes the company faces high competition in the fragmented industry.

 

The company demonstrated consistent Rev/EBITDA/PAT growth at a compound annual growth rate (CAGR) of 13.7 per cent/12.9 per cent/11.2 per cent during FY2022-24 period, respectively. The company has experienced sustained growth in financial performance commensurate with the broadening of its product range and increased customer base. 

 

As we advance, Orient Technologies' financial performance is likely to be driven by expanding its product and services portfolio, increasing its global footprint, long-term relationships with customers and collaboration with technology partners, thereby heightening its ability to design and innovate products and provide solutions tailored to specific customer requirements, the brokerage firm Stoxbox said in the IPO note.