This smallcap stock has surged 20% on June 28; up 76% from June 5 low

Shares of Black Box (formerly AGC Networks) surged 20% to hit a new high of Rs 384 on the BSE in Friday's intra-day trade amid heavy volumes.

Shares of Black Box (formerly AGC Networks) surged 20 per cent to Rs 384, hitting a record high on the BSE in Friday’s intra-day trade amid heavy volumes. The market price of smallcap stock has zoomed 76 per cent from its low of Rs 218 touched on June 5, as the management said they are confident in achieving strong performance in the fiscal year 2025 and beyond.

The company expects the order momentum to continue, with a healthy pipeline to mature and yield in the coming quarters.

“Although we are experiencing some delays in customer decision making which has affected our short-term revenue growth, the large order pipeline makes us confident to maintain our growth momentum over the coming period,” the management said in fiscal 2023-24 (FY24) earnings call.

At 12:35 am; the stock of information technology (IT) solutions provider was trading 18 per cent higher at Rs 378.20 on the BSE. In comparison, the BSE Sensex was down 0.07 per cent at 79,183. The average trading volumes at the counter more-than-doubled today. A combined 4.76 million shares changed hands on the NSE and BSE.

Black Box (BBL) on Thursday after market hours said that the Hon''ble the National Company Law Tribunal (NCLT), Mumbai Bench approved the scheme of reduction of share capital.

Black Box is a global digital infrastructure integrator offering connectivity and network solutions, data center solutions, modern workplace and cyber security solutions and technology products to businesses globally.

The company provides a server-based converged networking platform for voice, data and video, including IP telephony, multimedia call center and customer relationship management (CRM) solutions, unified communications, and customer service.

To expand its presence globally, the company acquired Black Box Corporation, USA (BBX) on January 7, 2019. BBX provides technology solutions by partnering with leading technology vendors and offers need-based value-added services through its key technology alliance partners, aiming to extend end-to-end solutions.

The marquee client base includes Bank of America, Wells Fargo, Meta, Amazon, Cleveland Hospital. Client relationships are longstanding, with average relationship of over two decades with the top 10 clients. The company also has collaborations with various global technology leaders. BBL will continue to benefit from its established market position, driven by its diversified range of service offerings and end-user industries, alliances with leading software vendors, and longstanding customer relationships. Orders of USD 200 million as of April 2024 provide revenue visibility for the medium term, according to analysts.

CRISIL Ratings believes the credit risk profile of BBL will continue to benefit from the company’s cost optimization measures, established market position and improving financial risk profile. In fiscal 2025, as the macroeconomic tensions ease, BBL is likely to record revenue growth of 8-10 per cent, with operating margin improving to 7-8 per cent from ~6.5 per cent in fiscal 2024, the rating agency said in rationale.