ESDS Shares Hit 20% Upper Circuit for Second Consecutive Session
ESDS Software Solution shares reached a 20% upper circuit for the second straight trading day, extending their rally after a strong stock market debut. The company's market capitalization surged past $1.3 billion.
Shares of enterprise cloud and AI company ESDS Software Solution reached a 20% upper circuit for the second consecutive trading session, continuing their rally following a strong stock market debut. The company's market capitalization climbed to approximately ₹12,596 crore (about $1.3 billion).
The stock's current trading price is over 150% higher than its initial public offering (IPO) price. ESDS listed on the stock exchange in early September with a premium of over 76% above its issue price. The shares subsequently hit their 20% upper circuit limit on the following trading days and remained locked at that level.
Analysts have issued positive outlooks for ESDS. Choice Institutional Equities initiated coverage with a 'buy' rating and a target price of ₹1,550, implying significant upside. The brokerage anticipates ESDS' $1.25 billion AI infrastructure contract with Australia-based Sharon AI to be a major growth driver.
ESDS provides cloud computing, data centre, and AI-led digital solutions. The company raised ₹720 crore through its IPO, with a substantial portion allocated for expanding its data center infrastructure. ESDS reported a significant increase in both profit and revenue for the last fiscal year.