ESDS Shares Hit 20% Upper Circuit For Second Straight Session
Shares of enterprise cloud and AI company ESDS Software Solution hit the 20% upper circuit for the second consecutive trading…
ESDS Software Solution's shares reached the 20% upper circuit for the second day in a row, continuing their strong performance following a successful IPO debut. The Indian company, specializing in cloud computing, data centre and managed services, saw its stock trade at ₹1,074.65 on the BSE and ₹1,090.05 on the NSE, more than doubling its IPO price of ₹429.
Choice Institutional Equities initiated coverage of ESDS with a 'buy' rating, projecting a 42% upside from the current stock price. The company's AI infrastructure contract with Australia-based Sharon AI is seen as a key growth driver, with revenue expected to increase significantly over the next two years. ESDS has also expanded its infrastructure with ₹576 Cr of IPO funds allocated for data centre equipment.
Despite the positive outlook, the brokerage notes risks such as AI contract execution, customer concentration, capital-intensive growth and competition.
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