Suyog Telematics jumps 54 per cent in two weeks
A sudden spike is seen in the stock price of Suyog Telematics in the last two weeks. On April 4, it closed at Rs. 260 and jumped by 54 per cent to close at Rs. 398.20 on Monday. During the period April to December 2018, the stock had corrected by 36 per cent and just two and a half months back in January 2019, it touched 52-week low of Rs. 190.
No specific reason or news has been driving the stock price. A clarification was sought from the company by BSE regarding the sudden movement in price in one week to which the company has clarified that the share price is moving purely due to market conditions.
Suyog Telematics is a telecommunication infrastructure provider in India engaged in the business of installing and commissioning of poles, towers and Optical Fibre Cable (OFC) systems.
Overall positivity has started building up around the telecom industry. Over the last two years, capex in the telecom industry had been low with the entry of new player Reliance Jio and merger of Vodafone Idea. Gradually, leading players have started increasing their capex considering the introduction of 5G wave in the near future.
For the quarter ending December 2018, the company’s standalone revenue was up by 18 per cent YoY. Its EBITDA and PAT during the quarter jumped by 24 per cent each. Company management is optimistic about making site expansion by increasing the number of towers from 1,700 to ~10,000 over the next two years.
On Monday, the stock of Suyog Telematics had closed at Rs. 398.20. On Tuesday, it opened at Rs. 400 and made an intraday high and low of Rs. 400 and Rs. 372.10, respectively during the morning trading session.