Shares of microcap IT company Canarys Automations Limited soared after securing a ₹5.53 crore software service and license supply order from Infosys. The stock hit the 5% upper circuit.
Canarys Automations Stock Performance
The company’s shares closed at ₹37 per share, up 5% from the previous close of ₹35.25. With a market cap of ₹208 crore, this company has caught the eye of investors.
Big Order from Infosys
Infosys Limited’s Noida STP Unit awarded Canarys Automations an order worth ₹5.53 crore. This order is for software services and licenses related to GitHub and GitHub Advanced Security, with support lasting from December 2024 to November 2030. This long-term deal is crucial for the company’s growth.
#ORDER #CANARYS
— ViRu (@Vivek_Ruparel) November 30, 2024
Major Order Secured by Canarys Automations Limited from Infosys Limited Noida STP Unit
Total order value 5.53 crore over 6 years pic.twitter.com/NWHWgvhqvC
Canarys Automations Fundamental
Founded 30 years ago, Canarys Automations Limited is a leading IT solutions provider specializing in digital transformation, modernization, and automation. The company serves various sectors, including healthcare, BFSI (Banking, Financial Services, and Insurance), and manufacturing.
Key Services and Products: The company’s services focus on digital automation and innovation. Their main products and services include:
- DevOps Consulting
- Cloud Solutions
- RPA (Robotic Process Automation)
- AI Integration
They also provide water resource management solutions, including Flood Risk Assessment and SCADA Systems.
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Financial Performance
- Revenue Growth: From ₹31.01 crore in H1FY24 to ₹37.58 crore in H1FY25, a 21% increase.
- Profit Surge: Profit increased from ₹2.65 crore to ₹4.21 crore.
- Return Ratios: ROE (Return on Equity) at 39.6% and ROCE (Return on Capital Employed) at 30.3%.
- Debt Ratio: Debt-to-Equity Ratio is just 0.11, indicating financial stability.
Profit/Loss:
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | TTM | |
| Sales | 18.12 | 25.17 | 51.80 | 73.73 | 74.49 | 80.14 |
| Expenses | 16.42 | 21.86 | 45.66 | 61.04 | 63.39 | 67.22 |
| Operating Profit | 1.70 | 3.31 | 6.14 | 12.69 | 11.10 | 12.92 |
| OPM % | 9.38% | 13.15% | 11.85% | 17.21% | 14.90% | 16.12% |
| Net Profit + | 1.05 | 2.18 | 4.31 | 9.38 | 8.77 | 9.34 |
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Shareholding Pattern
As of September 2024,
| Investors | Mar 2024 | Sept 2024 |
|---|---|---|
| Promoters | 56.59% | 56.59% |
| DIIs | 3.62% | 3.36% |
| Public | 39.79% | 40.05% |
| No. of Shareholders | 2,107 | 2,123 |
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Impact of Infosys Order
This order from Infosys will provide long-term stability and revenue growth for Canarys Automations. Offering support for premium services like GitHub for 6 years will strengthen the company’s market position.
Future of Canarys Automations
With its focus on digital automation and water resource management, Canarys Automations stands out in the tech sector. Orders from giants like Infosys will take the company’s business to new heights. For investors, this stock offers a long-term growth opportunity.
Disclaimer: Investing in the stock market is subject to market risks. Please conduct your own research or consult a financial advisor before making any investment decisions. This article aims to inform and educate investors and traders.