Yudiz Shares Drop 5% To Hit Lower Circuit After Weak H1 Results

by · Inc42

SUMMARY

  • On Wednesday, Yudiz reported a standalone net profit of INR 5,000 for H1 FY25 against INR 1.34 Cr reported in the year-ago period
  • The stock opened the day’s trading at its lower circuit and only 28K shares traded hands by that time
  • On similar lines, its operating revenue fell 23% to INR 11.15 Cr during the period under review from INR 15.87 Cr in H1 FY24
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Shares of Yudiz Solutions plunged as much as 5% to hit the lower price band of INR 70.30 apiece during the intraday trading today (November 14) on the NSE. This comes after the blockchain and IT development company reported weak financial numbers for the first half of the financial year 2024-25 (H1 FY25).

Notably, the stock opened the day’s trading at its lower circuit and only 28K shares traded hands by that time. Yudiz’s market capitalisation stood at INR 72.55 Cr for the day. 

On Wednesday (November 13), Yudiz reported a standalone net profit of INR 5,000 for H1 FY25 against INR 1.34 Cr reported in the year-ago period. If not for a tax credit of INR 75.14 Lakh in H1 FY25, the company would have posted a loss in H1 FY25.

On similar lines, its operating revenue fell 23% to INR 11.15 Cr during the period under review from INR 15.87 Cr in H1 FY24. 

Despite the company facing challenges in the financial results, the investors have shown confidence in the stock by choosing to hold onto shares. This is reflected in the company’s 20-day average delivery percentage of 144.36%. 

However, Yudiz’s Book Value Per Share stood at INR 47.13 much lower than its current market price of INR 70.30, signalling a potential overvaluation of stocks.

Founded in 2011, Yudiz specialises in web and mobile app development while providing services in areas of emerging technologies such as AR/VR, AI/ML, blockchain and IoT. 

Along with the announcement of its financial results, the company also intimated to the bourse that its company secretary and compliance officer (CSCO) Raveena Bohra tendered her resignation with effect from October 30. Prerana Joshi replaced her as the CSCO, effective from November 1.

The company has seen several developments lately. It acquired a 51.01% stake in ABCM App Pvt Ltd to set up a new subsidiary – Insightly Dataworks Pvt Ltd – in September this year.

It faced a challenge earlier this year wherein HDFC Bank froze its bank account in which it stashed its IPO proceeds. The bank then unfreezed it in July.