Shares of Yudiz Solutions Ltd. fell sharply today, dropping 5% to reach the lower price band of INR 70.30 during intraday trading on the National Stock Exchange (NSE). The decline follows the company’s disappointing financial results for the first half of the financial year 2024-25 (H1 FY25).
The stock opened at its lower circuit and recorded a mere 28,000 shares traded by midday. Yudiz’s market capitalization now stands at INR 72.55 crore.
In its latest report, Yudiz Solutions revealed a standalone net profit of only INR 5,000 for H1 FY25, a significant decrease from INR 1.34 crore reported in the same period last year. The company’s financial performance was further weakened by a 23% drop in operating revenue, which fell to INR 11.15 crore from INR 15.87 crore in H1 FY24. Notably, a tax credit of INR 75.14 lakh was the only factor preventing a reported loss during this period.
Despite these challenges, investor confidence remains evident, as reflected in the company’s 20-day average delivery percentage of 144.36%. However, Yudiz’s book value per share stands at INR 47.13, considerably lower than the current market price, suggesting potential overvaluation.
Founded in 2011, Yudiz specializes in web and mobile app development, with a focus on emerging technologies including augmented reality (AR), virtual reality (VR), artificial intelligence (AI), machine learning (ML), blockchain, and the Internet of Things (IoT).
In addition to its financial disclosures, Yudiz announced the resignation of its Company Secretary and Compliance Officer, Raveena Bohra, effective October 30. Prerana Joshi has been appointed as her successor, effective November 1.
Yudiz has also been active in expanding its portfolio, acquiring a 51.01% stake in ABCM App Pvt Ltd to establish a new subsidiary, Insightly Dataworks Pvt Ltd, in September. The company faced a challenge earlier this year when HDFC Bank temporarily froze its bank account containing IPO proceeds, but the account was unfrozen in July.
As Yudiz navigates these financial hurdles, investors and market analysts will be watching closely to see how the company addresses its challenges and leverages its recent developments.
