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Shares of Axiscades Technologies continued their northward movement as they froze 10 per cent upper circuit at Rs 282.95 per share in Wednesday's intra-day trade. In comparison, the S&P BSE Sensex was down 0.5 per cent at 60,831 points at 1:47 pm.
In the past 11 trading days, the stock of this IT enabled services company zoomed 73 per cent from Rs 163.30 apiece, which it had touched on October 17, 2022. The stock rallied 117 per cent in three months, as against 5 per cent rise in the S&P BSE Sensex. The stock traded at its highest level since June 2016.
Clarifying about the price movement, Axiscades Technologies on October 25, said that the company is not aware of any information or announcement (including impending announcement), which can impact price/volume behaviour of the scrip.
“Additionally, we are not aware of the reason for the change in the price of our shares in recent days. The movement in the share price and volume is market driven,” the company said.
Axiscades is a leading technology solutions and product engineering company that caters to futuristic needs of aerospace, defence, off-highway / heavy engineering, automotive, energy, medical and healthcare sectors.
The management believes that the pandemic accelerated demand for digital transformation across businesses, which will have a positive impact on engineering research & development (ER&D), specially in India, which contributes around 33 per cent in the global ER&D sourcing market.
"The global ER&D is expected to grow at 9 per cent CAGR to reach ~$2.1 trillion by 2024. Moreover, digital engineering spends will account for over 50 per cent of global ER&D spend by 2024 and digital ER&D is likely to grow at a CAGR of 19 per cent, during the same period," Axiscades said.
That apart, India has witnessed significant rise in defence expenditure over the years. The defense budget for 2022 was around $70.6 billion (Rs 5.25 trillion), 9.8 per cent higher than previous year’s allocation. Moreover, the company anticipates that the increased defence budget will drive market growth for services in the coming years.
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First Published: Wed, November 02 2022. 14:33 IST