Spacenet Enterprises India Ltd, incorporated in 2010 and formerly known as Northgate Com Tech Limited until November 2015, is a FinTech company specialized in trade and trade finance. The company has its registered office in Telangana and is engaged in trading of commodities and providing information technology related services, including development of software tools and platforms for commodities trading.
The company empowers traders, SMEs, MSMEs, and trade channels through its comprehensive business model. Spacenet develops fast, flexible, and reliable commodities trading tools while also investing in and dealing with gold, agricultural commodities, and other finished or unfinished goods. Their TradFi solution leverages technology and specialist approaches in structured trade and commodity markets, covering foreign exchange risk and arranging import/export supply chain finance. The company also offers buyers credit and suppliers credit facilities from banks.
Spacenet operates primarily as a trader in commodity markets, providing customers with access to widely varied resources across domestic and international markets. The company's ultimate objective is to create value for customers by offering the best industry solutions, continuously enhancing their product portfolio and tailoring special services to meet specific customer needs. Through comprehensive commodities and related services, Spacenet distinguishes itself as a reliable trading partner.
The company's technology-driven approach focuses on developing software platforms that facilitate efficient commodity trading while maintaining a strong presence in the physical commodity markets. This dual approach allows Spacenet to serve both the digital transformation needs of the trading sector and the traditional commodity trading requirements of its clients.
Spacenet Enterprises has a market capitalization of ₹451 Crores, which represents a significant decline of 74.5% over the past year. The stock is currently trading at 2.98 times its book value, with a book value of ₹2.67 per share. The company has a price-to-earnings ratio of approximately 38.0.
For the full year ended March 2025, Spacenet reported a net profit of ₹11.89 Crores, representing a 13.89% increase from ₹10.44 Crores in the previous year. Sales rose significantly by 22.49% to ₹157.05 Crores in FY25 compared to ₹128.21 Crores in FY24.
Quarterly performance showed mixed results. In the quarter ended March 2025, net profit surged 167.84% to ₹4.58 Crores compared to ₹1.71 Crores in the same quarter of the previous year, though sales declined 18.84% to ₹38.73 Crores from ₹47.72 Crores.
Recent quarterly trends show some challenges, with revenue declining from ₹45.12 Crores in Q2 FY25 to ₹38.85 Crores in Q3 FY25, representing a 13.9% quarterly decline. Net profit also dropped from ₹3.42 Crores to ₹1.32 Crores, showing a 61.4% quarterly decline.
- Revenue (FY25): ₹157 Crores
- Net Profit (FY25): ₹11.89 Crores
- Market Capitalization: ₹451 Crores (approx.)
- Book Value per Share: ₹2.67
- Price to Earnings Ratio: ~38.0
- Return on Equity: 9.29% (current), with a low 3-year average ROE of 9.95%
- Return on Capital Employed: 9.92%
- Debt Position: The company is almost debt-free
Promoter holding stands at 15.60% as of March 31, 2025, with promoters having disclosed no encumbrance of shares. There is no promoter pledging in the company. The company's auditors are Gorantla & Co., with S Ravi serving as Chairman and M Chowda Reddy as Company Secretary and Compliance Officer.
The stock has experienced significant volatility, with a 52-week high of ₹36.10 and a 52-week low of ₹5.82. Over the past 3 years, the stock has delivered returns of 43.84%, though recent performance has been challenging due to market conditions and quarterly results fluctuations.
The company maintains a dividend yield of 0.00%, as it is currently not paying out dividends despite reporting consistent profits. The face value of each share is ₹1.00, and the company has been listed on both NSE and BSE exchanges.
Spacenet Enterprises operates in the growing FinTech and commodity trading space, benefiting from India's digital transformation in financial services. The company's debt-free status and technology-focused business model position it well for future growth. However, investors should note the recent quarterly performance volatility and the current high valuation metrics when making investment decisions. The company's focus on empowering SMEs and MSMEs through technology solutions aligns with government initiatives supporting small businesses, potentially providing long-term growth opportunities.
