Network People Services Technologies (NPST) is a key player in the business of providing digital payment solutions to banks, financial institutions, and merchants. Recently announcing a generous 2:1 bonus share issue, implying shareholders will receive 2 bonus shares for every 1 share held, NPST’s stock has witnessed an astounding surge, surpassing the 2400 apiece mark and delivering over 870% returns to investors in the last year. The record date is yet to be announced.
Company Key Metrics
| PE Ratio | 98.6 |
| ROCE | 34.5% |
| ROE | 25.8% |
| Market Capital | ₹ 1,558 Crores |
| Dividend Yeild | 0.00 % |
Network People Services Technologies (NPST) presents key metrics that offer insights into its financial performance and market status. The stock’s Price-to-Earnings ratio (P/E) is 98.6, indicating the market’s valuation of its earnings. NPST’s Return on Capital Employed (ROCE) stands at 34.5%, demonstrating its capital efficiency for generating profits. The Return on Equity (ROE) is 25.8%, reflecting returns for shareholders. With a Market Capitalization of ₹1,558 Crores, NPST signifies a substantial presence in the digital payment solutions sector. The company’s dividend yield stands at 0.00 percent.
Half-Yearly Results Highlights
In H1FY24, NPST reported a remarkable 470% increase in net sales to Rs 52 crore and a staggering 900% surge in net profit to Rs 10 crore compared to H1FY23. The annual results for FY23 showcased a 116% rise in net sales to Rs 41 crore and a 250% jump in net profit to Rs 7 crore compared to FY22. The stock closed at ₹2400.10 on NSE on January 3, 2024, with a high/low range of ₹2560/245.
Bonus Share Announcement
As per the recent NSE filing, the company’s board approved a 2:1 bonus issue, subject to shareholder approval in the Extraordinary General Meeting and regulatory approvals. The bonus shares will be credited to shareholders holding equity shares as of the record date, yet to be announced.
Key Company Insights
- Almost debt-free
- 39.3% CAGR profit growth over the last 5 years
- Stock trading at 40.0 times its book value
- Company, despite repeated profits, does not pay dividends
Success Stories
- Migrated Syndicate Bank to Canara Bank under the government PSU bank merger plan.
- Launched mobile banking and IMPS platform for Karnataka Grameen Bank & Kerala Grameen Bank.
- Executed centralized inventory solution for one of the largest e-commerce companies in India.
About the Company
NPST operates in two categories:
- Technology Service Provider: Serves as a Fintech partner providing certified solutions for digital payments, including Mobile Banking, IMPS, Bhim UPI, and Wallet platforms. Also provides IT services such as development, customization, maintenance, and support.
- Merchant Payment Service Provider: Authorized Merchant Payment Service Provider, approved by NPCI, offering merchants a complete Digital ERP over the cloud to manage and operate the financial value chain of a business. The digital ecosystem is empowered with UPI payments and covers various entities requiring a digital platform.
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