Shares of Goldstone Technologies Limited are locked in the 5 percent upper circuit today at a price of Rs 58.95. In the last one month period, the stock has gained around 20 percent ranging from Rs 49.60 to the current price levels. The company has a market capitalization of Rs 203 crores. 

Keeping a purview of 2 years, the stock has been able to give multibagger returns of 492 percent ranging from Rs 10 to current levels. It means that if someone would have invested Rs 1,00,000 in the stock, it would have converted to Rs 5,92,000 within a period of 2 years. 

Such bullish sentiments with regard to the stock prices are observed after the company, through a regulatory filing, announced that it is setting up a Joint Venture (JV) with ‘Quantron AG’, a German E-mobility major. 

The filing further mentioned that the JV company, with its operations to be carried out of Germany, will be mainly focusing on providing various solutions through an AI-supported platform. With the development of the platform mentioned above, the JV company will be serving markets that are under a serious requirement of sustainable integrated solutions with respect to mobility and logistic companies for their fleet management solutions. 

Goldstone Technologies Limited is engaged in the Information technology (IT) sector and its enabled Services. The firm offers various services such as Infrastructure services, Outsourcing services, Business intelligence and analytics, and others. It operates in both, domestic as well as international markets. The company generates maximum revenue from ‘Software Services and ‘Software Licenses’. 

Having a quick glance at the financials of the company, the revenues have jumped from Rs 26 crores in Q2 to Rs 27.50 crores in Q3. Due to increasing operating costs faced by the company, the net profits took a hit thereby reducing from Rs 55 Lakhs in Q2 to Rs 51 Lakhs in Q3. 

The debt-to-equity ratio of the company has shifted from a nil figure during FY20-21 to 0.06 in FY21-22. 

On a positive note, the company has been able to turn around its profitability metric such as the return on equity (ROE) from negative returns of 1.29 percent during FY20-21 to positive returns of 0.91 percent in FY21-22. The return on capital employed (ROCE), keeping positive, has shown growth from 0.27 percent in FY20-21 to 1.76 in FY21-22. 

Written by Amit Madnani

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