Orient Technologies is a leading IT solution provider headquartered in Mumbai, India. After establishing in 1997, the company has since offered various customized IT solutions to clients from various industries. That’s why the company has evolved to become one of the prominent system integrators in the country.
Let’s dive into what this company offers
Flagship Offerings
Orient Technologies has been providing a lot of services but we are here going to discuss a few of its services
- IT Infrastructure
Orient Technologies offers pure data-based solutions and end-user computing
- IT-enabled Offerings
OT has been providing a wide range of IT-enabled services (ITeS)
- Cloud and Data Management Services
Another thing that Orient Technologies is known for is that they’re providing cloud services to a broad spectrum of industries, including pharmaceutical, healthcare, BFSI, ITeS as well as government – PSU.
- Collaboration with High-end companies
OT has been collaborating with high-end technology companies such as Dell, Fortinet, and Nutanix and offering advanced solutions that are tailored, to meet client’s specific needs.
Impressive Stock Market Debut: Orient Technologies
Orient Technologies has been recently in the headlines for its brilliant stock market debut dated August 28, 2024.
Let’s take a deeper look at all the developments of this event
Impressive Market Debut
- Share listing Performance: National Stock Exchange
Shares of Orient Technologies were listed at 288 INR on the National Stock Exchange, which shows a robust premium of 40% over the IPO price of 206 INR.
- Bombay Stock Exchange
Shares opened at around 290 INR on the Bombay Stock Exchange with a similar upward trend
The stocks have reached a high of around 304.45 INR on BSE, losing 304.45 INR at the end of the Trading day which shows a brilliant gain of around 48 % from the IPO prize
Overwhelming Interest: Investors Enthusiasm
This remarkable gain has evoked an overwhelming interest in all the investors which resulted in the subscription rate increase of 151.71 times. There are around 300.59 times subscriptions from non-institutional investors and around 66.87 times from retail investors.
Those whore Qualified institutional buyers also showed a prominent participation with subscriptions of 189.90 times.
Plans: Financial Aspects
Consisting of a new issue of 120 CR INR and an offer for sale of 94.76 cr INR by promoters public offering is soon to be raided by 214.76 cr INR.
This success from IPO marked several strategic initiatives, including acquiring an office in Navi Mumbai, also funding capital expenditures for the Network Operating Centre (NOC) and Security Operation Centre (SOC) expanding their Device-as-a-Service offerings.
Market Outlook
Analysts all over are showing a positive outlook on the company saying that it’s a strong favorable and fundamental condition in the IT sector. There are a few concerns here and there surrounding competition and reliance on key clients but overall the outlook is pretty optimistic. There are recommendations for clients to invest their shares in the medium or long term.
Should you invest In Orient Technologies?
Significant investor interest has been generated after Orient Technologies’ strong market debut where their share list at over 40 % on August 28.
But before investing it’s very important to consider the company’s growth, prospects, fundamentals, and challenges that might come the way
Let’s discuss why you should invest and what are the risks
Aspects Supporting Investment
- Durable IPO Subscription
Company IPO has been oversubscribed by 151.71 times which shows the strong confidence of investors in its prospects.
- Persistent Financial Growth
Reports coming from Orient Technologies show a 12% increase in the revenue to 603 cr INR with a profit of 41.4 cr INR
- Diverse Expertise
After collaborating with leading technology partners like Dell, Fortinet, and Nutanix, the company has developed deep expertise in IT Infrastructure, ITeS, and cloud and management services.
Risks and Challenges
- Competition in industry
Investors should be careful about all the risks including industry competition, which affects the company’s market share and profitability.
- Dependability on key clients
Company performance depends and is tied to its ability to attract key clients that might make client concentration risks
What experts say about investment: Shivani Nyati, Hashim Yacoobali
Shivani, head of wealth at swastika investment advises to hold their shares with a stop loss of 260 INR while being careful about challenges
On the other hand, Hashim, Director of South Gujrat Shares anticipates a further upward moment in the coming days expecting this to remain intact within the 284-331 support and resistance zone.
Concluding remarks
This successful IPO with a strong debut of Orient Technologies not only highlighted the company’s strong market position but also investors’ confidence in its potential growth. It will be intriguing to see how it navigates with the competitive landscape of the IT sector
While all the listings and performance are positive indicators it is advisable to consult a qualified financial advisor to know whether to invest or if it does not align with your investment goals and risk tolerance.
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Written by Kashaf Muhammad