This fintech company, known for advanced algorithmic trading solutions, has seen its stock surge. The company recently approved significant corporate actions, proposing a stock split and bonus share issuance, pending shareholder consent, signaling strong growth and rewarding investors. Details follow in this report.
Algoquant Fintech Limited’s stock, with a market capitalisation of Rs. 1,764 crores, rose to Rs. 1,169, hitting a high of up to 9.76 percent from its previous closing price of Rs. 1,065.40. Furthermore, the stock over the past year has given a return of 40.33 percent.
Split and Bonus Issue
The company’s board has approved major changes to make its shares more affordable and reward its shareholders. Firstly, it will split each equity share into two shares, reducing the face value from Rs. 2 to Rs. 1.
This means if a shareholder owns 1 share today, they will soon have 2 shares, but the total value of their holding remains the same. Secondly, the company will issue bonus shares in the ratio of 8:1.
This means for every 1 share a person holds (after the split), they will get 8 extra shares for free. So, if someone holds 100 shares now, after the split and bonus issue, they will own 1,800 shares.
For shareholders, this increases the total number of shares they hold without spending any extra money. Although the price per share will reduce to reflect the increase in the number of shares, the overall value of their investment stays the same in the short term.
In the long run, this move could make the stock more affordable for new investors, improve liquidity (easier to buy and sell shares), and potentially boost demand for the stock.
Also Read: Stock jumps 4% after receiving ₹4 Cr order from National Highways Authority
Q4 Financial Highlight
The company reported Q4FY25 revenue of Rs. 54.02 crore, down 2.7 percent YoY from Rs. 55.54 crore but up 8.4 percent QoQ from Rs. 49.84 crore. Profit for the quarter stood at Rs. 0.61 crore, sharply lower by 90.1 percent YoY and 88 percent QoQ, compared to Rs. 6.19 crore in Q4FY24 and Rs. 5.09 crore in Q3FY25.
Despite revenue growth on a quarterly basis, profitability remained under pressure. The stock trades at a P/E of 55.2, indicating premium valuations, while the debt-to-equity ratio remains comfortable at 0.34, reflecting a stable balance sheet.
Company Product and Services
Algoquant Fintech Limited, formerly Hindustan Everest Tools Limited, is a technology-driven trading firm incorporated in 1962 and based in New Delhi, India. It specializes in low-risk, hedged derivatives arbitrage and high-frequency trading in Indian capital markets, leveraging sophisticated algorithms and ultra-low latency systems.
The company, a subsidiary of Algoquant Investments Private Limited, focuses on delivering secure, personalized investment strategies for clients, combining mathematics, economics, and advanced technology for effective trade and risk management.
Written By Fazal Ul Vahab C H
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