The stock market spotlight has been on Dev IT over the past two sessions, with the small-cap IT company’s shares experiencing a substantial uptrend. On Wednesday, Dev IT’s share price closed over 5% higher, and the rally continued into Thursday. The stock opened at ₹125.50 today and quickly surged to an intraday high of ₹135.01 on the NSE, marking a nearly 10% intraday gain within just a few minutes of the market opening bell.
The primary catalyst for this impressive performance is Dev IT’s announcement of a significant new order worth ₹8 crore. In an exchange filing on Tuesday, the company revealed,
We are pleased to inform you that Dev Information Technology Ltd (DEVIT) have secured noteworthy orders cumulatively worth ₹8 crore approximately. These work orders are towards providing SQL Server Enterprise & Windows Server for further enabling Gujarat Chief Minister Office’s Dashboard Application and various other key software solution applications specific to quite a few other Departments of the Gujarat Government hosted in Gujarat State Data Centre.
This announcement has clearly had a substantial impact on investor sentiment, driving the stock price higher.
Dev IT further elaborated on the specifics of the order, stating,
Dev Information Technology Ltd (DEVIT) secured a noteworthy order for providing SQL Server Enterprise & Windows Server for further enabling Gujarat Chief Minister Office’s Dashboard Application, and various other key software solution applications specific to quite a few other Departments of the Gujarat Government hosted in Gujarat State Data Centre.
The company noted that the domestic order is of a fixed cost and will be executed over a period ranging from six months to two years.
This major contract win highlights Dev IT’s growing footprint in the government sector and its ability to secure substantial contracts that can drive future growth. The company’s focus on providing crucial IT infrastructure for the Gujarat Government underscores its strategic importance and reliability as a technology partner.
The recent surge in Dev IT’s share price is also supported by a significant increase in the company’s promoter holding. According to the shareholding pattern for the January to March 2024 quarter, the promoters of the company have demonstrated their long-term commitment by purchasing 848,030 shares. This acquisition increased their stake to 70.20%, up from 67.53% in Q4FY24.
This significant increase in promoter stake is a strong vote of confidence in the company’s future prospects and has likely contributed to the positive momentum in the stock price.
Investors have taken note of these developments, driving the stock higher as they anticipate the positive impact of the new order on Dev IT’s financial performance. The company’s ability to secure such a substantial contract, coupled with the increased promoter holding, suggests a strong outlook for future growth.
