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This Penny Stock Surged 22% After Securing ₹10 Crore Project: Should You Buy?

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September 3, 2024

New Delhi, India

GACM Technologies

GACM Technologies, a penny stock, has seen a significant rise in its share price, up over 22% in one week and nearly 29% in one month. The stock has surged more than 83% in the past three months, with year-to-date (YTD) gains of 14.5%. The shares were locked at a 5% upper circuit following the announcement of a new project valued at ₹10 crore. On the BSE, GACM Technologies shares rose 4.43% to ₹1.65 apiece.

New Project Win Boosts Investor Confidence:

The company announced it received an order worth ₹100 million (₹10 crore) from MSK Technologies (India) Pvt Ltd for resource augmentation and consulting services, leveraging GACM’s expertise in IT solutions and technology services. The expected gross profit from this project is estimated to be around 55% to 60% of the total order value, translating to approximately ₹5.50 crore to ₹6 crore.

According to a BSE filing on Monday, GACM stated, “The services will be performed both onsite at the Customer’s premises and offshore at GACM’s development offices. This project enhances GACM’s portfolio in high-value IT services, showcasing our ability to execute large-scale assignments.” The project is expected to positively impact the company’s revenue and profitability for the current financial year, aligning with its growth strategy.

Also Read: Bajaj Housing Finance Targets ₹6,560 Crore in Upcoming IPO

Impressive Stock Performance and Multibagger Returns:

GACM Technologies has delivered multibagger returns, with the stock price rising over 126% in the past year and more than 205% over the past three years.

Also Read: Premier Energies IPO Makes Impressive Market Debut with 120% Premium Listing

Recent Rights Issue Details:

Last month, GACM Technologies completed a rights issue, which opened on July 31 and closed on August 14, with the record date set for July 16. The company approved the allotment of 34,02,87,057 fully paid-up equity shares and 5,91,09,227 fully paid-up EQ-DVR at a price of ₹1 per share. The total rights issue size was ₹34.03 crore, with an entitlement ratio of 1:1, meaning one rights share for every fully paid equity share held on the record date.

GACM Technologies’ recent project win and strong stock performance have positioned it as a notable player in the penny stock segment, with investors closely watching its growth trajectory in the IT services sector.

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