Synopsis:
Magellanic Cloud Limited, a small-cap IT and technology services company, has secured two new work orders totaling Rs. 87.27 crore, expanding its presence in AI-enabled video surveillance.
A small-cap company that provides IT services in software development, consulting and human resource business solutions is in the spotlight after receiving two new work orders worth Rs. 87.27 crore.
With the market capitalization of Rs. 5,064 crore, the shares of Magellanic Cloud Limited is trading at Rs. 86.65, up by 12.97 percent from its previous day’s close price of Rs. 76.70 per equity share, and it has reached a high of Rs. 89.44 in the same trading day.
Work Orders
1. Provigil Surveillance Limited, a wholly owned subsidiary of Magellanic Cloud Limited, has received a Rs. 85 crore letter of acceptance from Rail Vikas Nigam Limited to provide AI-enabled Video Surveillance Systems at 441 D & E category stations and upgrade 43 major stations on the Southern Railway, with a goal of improving the passenger security.
2. Provigil Surveillance, a wholly owned subsidiary of Magellanic Cloud, has received a Rs. 2.27 crore LoA from South Central Railway to replace video surveillance systems at various locations in Secunderabad Railway station.
This follows the company’s earlier order received from NHAI worth Rs. 32 crores. Collectively, these all orders valued at Rs. 119.25 crore indicate the company’s strong capabilities in delivering large scale, AI enabled surveillance solutions which meet the highest standards of safety and cybersecurity.
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About the Company & Others
Magellanic Cloud Limited, founded in 1981 as South India Projects Limited, is a technology-driven multinational that provides digital transformation, AI/IoT, e-surveillance, and drone solutions. With over 1,600 employees and 600+ clients worldwide, it offers IT services, software development, consulting, and HR solutions in Europe, the United States, and Asia.
A return on equity (ROE) of about 22.2 percent and a return on capital employed (ROCE) of about 22.9 percent highlights the company’s financial position. At the moment, the company’s P/E ratio is 49.1x higher as compared to its industry P/E 28.8x. The debt-to-equity ratio stands at 0.50.
For Q1 FY26, its revenue from operations grew by 24.24 percent from Rs. 132 crore in Q1 FY25 to Rs. 164 crore in Q1 FY26, accompanied by profits increased by 3.70 percent from Rs. 27 crore in Q1 FY25 to 28 crore in Q1 FY26.
Written by Akshay Sanghavi
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