Share of Datamatics Global Services has delivered around 290 per cent returns to its shareholders in the last 12 months. The share stood at Rs 48.20 on June 22, 2020. It has zoomed to Rs 188.45 today, translating into gains of 290 per cent during the period. In comparison, Sensex rose 51 per cent in one year.
Rs 5 lakh invested in Datamatics share a year ago would have turned into Rs 19.54 lakh today.
The stock has gained 90 per cent in the last six months and risen 57.4 per cent since the beginning of this year. The share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
"Datamatics is a debt-free company and has successfully divested its subsidiary Cignex which will help them concentrate on BPM and AI businesses," Jitesh Ranawat, Head Institutional Sales at Marwadi Shares and Finance Ltd, told Business Today.
"The company trades at 13x FY21 EPS and can be a good investment candidate. It has concentrated on improving EBITDA margins and PAT margins over the past three quarters which has resulted in better valuations for the company," he said.
He further added that the company has cash and liquid investments worth Rs 254 crore as on March 21. Also, a better dividend payout policy might work well for the investors.
Recently, the company also announced that the acquisition of 49.50% stake in Cybercom Datamatics Information Solutions from Cybercom Group AB, will now be completed in one or more tranches on or before 30 September 2021.
Datamatics reported a net profit of Rs 28.66 crore for the quarter ended March 2021. Net profit stood at Rs 11.55 crore in the year-ago period. However, total sales declined marginally to Rs 283.29 crore from Rs 310.38 crore in the corresponding quarter of the previous year.
For FY21, the company posted a net profit of Rs 79.75 crore against Rs 63.74 crore in the previous year.
Total sales declined 4.5 per cent to Rs 1149.05 crore in the fourth quarter of last fiscal from Rs 1203.32 crore in the corresponding period of the previous year.
In terms of sectoral contribution to the revenue, BFSI, Publishing and Technology and Consulting were the top three sectors contributing 27%, 25%, and 19% respectively.
Top 5 clients contributed 25%; top 10 clients contributed 36%, whereas the contribution from top 20 clients to the revenue for stood at 49%.
"The year gone by is a testament of our resilient business model, strong relationship with our customers, and commitment exhibited by Datamatics team. Despite the headwinds created by pandemic, the company performed well," said Rahul Kanodia, Vice Chairman and CEO.
"Our EBITDA witnessed a growth of 15.1% and we sustained double-digit EBITDA margin of 12.4%. The company witnessed healthy revenue growth in Q3 & Q4 and is back on the growth path," he added.
Datamatics is a global technology, BPM, and digital solutions company that builds solutions for data-driven businesses to enhance productivity and customer experience.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today