One of the small-cap IT stocks engaged in offering services in digital transformation, ERP, and other IT services. The stock has jumped 4.72 percent after securing a $2.5 million project with Oil India to implement the Optima real-time wellhead monitoring system across 77 wellheads in Duliajan, Assam.
Stock Price Movement:
With a market capitalization of Rs. 1,620.91 crores, the shares of Kellton Tech Solutions Limited reached an intraday high of Rs. 171 per equity share, rising nearly around 4.72 percent from its previous day’s close price of Rs. 163.30. Since then, the stock has retreated and is currently trading at Rs. 166.15 per equity share.
What Happened:
Kellton has secured a $2.5 million project with Oil India to implement the Optima real-time wellhead monitoring system across 77 wellheads in Duliajan, Assam. This advanced platform will integrate AI-driven analytics and cloud-based infrastructure and aim to enhance operational efficiency, optimize production, and enable predictive maintenance.
The project highlights Kellton’s expertise in delivering digital solutions tailored to the energy sector, supporting Oil India’s goal of modernizing its operations and improving sustainability.
Future Outlook:
The management is optimistic about reaching a $200 million revenue target by 2027, driven by faster client decision-making. Margin improvement is expected through business realignment, despite challenges in Europe due to the ongoing Ukraine conflict and stagnated growth.
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Q2 Client Wins Overview
In Q2, five new clients were secured, including a major gaming client for Enterprise Data Warehouse modernization and Snowflake migration. A contract food services client was onboarded for a kitchen operation system. SAP expertise enhanced a warehouse management system. A global manufacturer streamlined sales and inventory management for 2000 SKUs.
Recent quarter results and ratios:
Kellton Tech Solutions Limited’s revenue has increased from Rs. 241 crore in Q2 FY24 to Rs. 271 crore in Q2 FY25, which has grown by 11.07 percent. The net profit of Kellton Tech Solutions Limited has also grown by 17.65 percent, from Rs. 17 crore in Q2 FY24 to Rs. 20 crore in Q2 FY25.
Kellton Tech Solutions Limited’s revenue and net profit have grown at a CAGR of 6.26 percent and -2.56 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 15.9 percent and 15.7 percent, respectively. The debt-to-equity ratio of the company is to be 0.29x, which shows the company is almost debt-free. Kellton Tech Solutions Limited’s EPS is to be Rs. 7.36.
Company Overview:
Kellton Tech Solutions Limited is an Indian multinational company specializing in digital transformation and technology consulting services. The company is headquartered in Hyderabad, India, and operates across various regions, including the United States, Europe, and the Asia-Pacific.
Written By – Nikhil Naik
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