Shares of FDC Ltd. surged over 10% to a record high on Thursday after its first-quarter profit jumped and its board approved the share buyback plan.
The buyback of up to 31 lakh shares, or 1.87%, of the total paid-up equity capital will be done at a price of Rs 500 apiece for an aggregate amount not exceeding Rs 155 crore.
The board also approved the acquisition of an additional 7% stake in its subsidiary FDC SA from other existing shareholders and the settlement of their existing outstanding loan with interest.
FDC Q1FY24 (Consolidated, YoY)
Revenue is up 8.4% at Rs 536.38 crore.
Ebitda is up 56.4% at Rs 122 crore.
Ebitda margins at 22.75% vs. 15.77%
Net profit is up 55.4% at Rs 109.81 crore.
Shares of FDC rose 7.63% to 418.8 apiece as of 9:57 a.m., as compared to 0.26% decline in the NSE Nifty 50. The scrip rose as much as 10.24% intraday to hit a record high of Rs 428.95 apiece. It has risen 54.6% year-to-date.
Total traded volume stood at 41.9 times its 30-day average. The relative strength index is at 85, implying that the stock may be overbought.
One analyst tracking the company maintains a 'buy' rating on the stock, according to Bloomberg data.
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