Rs 32.70 crore order received by multibagger stock below Rs 60: Small-cap's WiFi JV with RailTel and vision to reach the USD 1 billion milestone!
Build products, platform services leveraging the power of 5G in Edge Computing, Cognitive AI / ML, Data Security, Data Science and Analytic, Block Chain with an IP valuation of a billion dollars
As the Indian markets resume trading after a prolonged weekend, marked by the celebration of the Ayodhya Ram Mandir Inauguration, investors are advised to turn their attention towards a compelling opportunity in the Small-Cap segment. 3i Infotech Ltd, currently trading below Rs 60, is positioned as a noteworthy player in the ongoing digital transformation wave.
The company has distinguished itself by demonstrating profound domain expertise across diverse sectors such as BFSI, Healthcare, Manufacturing, Retail, and Government. Its commitment to driving digital transformation is evident through the adept utilization of emerging technologies such as Artificial Intelligence (AI), Blockchain, Robotic Process Automation (RPA), Low-code Development, Internet of Things (IoT), Cloud Computing, and Machine Learning (ML).
With a robust presence in key geographies like North America, India, Asia Pacific, Middle East and Africa, the Kingdom of Saudi Arabia, and South Asia, 3i Infotech has established a strong foothold and client base. In the quarter ending September 2023, the company achieved a record revenue of Rs 210 crore, marking an impressive 8.2 per cent QoQ growth and a substantial 18.7 per cent YoY increase. Notably, the positive Profit Before Tax (PBT) of Rs 26.4 crore before the exceptional item underlines the company's gradual yet consistent progress.
In Q2 FY24, the Application-Automation-Analytics (AAA) segment emerged as a key revenue contributor with Rs.132.3 crore, followed by IMS with Rs. 36.4 crore. The Cloudfirst segment witnessed remarkable growth, soaring by 71.7 per cent QoQ and an outstanding 275.07 per cent YoY increase. The BFS industry played a pivotal role in contributing the highest revenues of Rs. 76 crore during this quarter, securing a 36.1 per cent share, closely followed by the IT sector with a 30.1 per cent contribution.
A recent noteworthy development for 3i Infotech is its work order from M/s. Concept Communications, representing Bharat Petroleum Corporation Limited (BPCL), as the primary sponsor for the Digital Ad inventory on the company's captive portal and PIPOnet. This initiative aims to enhance unique user engagement for free Wi-Fi across 6105 plus stations through awareness campaigns and branding, with a contract value of approximately Rs. 32.70 crore spread across 27 months.
The subsidiary, NuRe Bharat Network Limited, a joint venture with RailTel, has successfully implemented the technology required to monetize the WiFi platform through advertisements. By targeting large public sector companies, existing enterprise customers, and individual retailers, the company is gaining traction rapidly. Advanced discussions with large PSUs are underway, and deals are expected to be announced soon. The WiFi ad monetization business is anticipated to become a significant revenue generator for 3i Infotech in the upcoming months.
In summary, 3i Infotech's NuRe Bharat WiFi joint venture has strategically implemented technology and is actively onboarding customers across enterprise, public sector, and retail segments for ad placements on the WiFi network. With the stock exhibiting multibagger returns since the lows of March 2023, doubling in value, the company presents a compelling opportunity for investors eyeing growth in the evolving digital landscape.Company has set vision to reach the USD 1 billion milestone by 2030. Incubation, commercialization & acceleration of at least 10 technology/product start-ups. Build products, platform services leveraging the power of 5G in Edge Computing, Cognitive AI / ML, Data Security, Data Science and Analytic, Block Chain with an IP valuation of a billion dollars
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