Small-cap stock SIS to declare buyback of shares today. Do you own?

Small-cap stock SIS fell over 1.15 per cent in Tuesday's trading session ahead of the board meeting on March 25 to consider the proposal for a share buyback.

At 9:30 am, SIS share price was trading at ₹330.05 on the National Stock Exchange (NSE).

“We wish to inform you that the board meeting of the Company is scheduled to be held on March 25, 2025 (“Board Meeting”), inter alia, to consider and if deem fit, to approve the proposal for buyback of the equity shares of the Company as well as matters related/incidental thereto,” the company said in an exchange filing.

This marks the fourth equity share buyback by SIS in the past four years. The company previously conducted buybacks in 2021, 2022, and 2023, all through the tender offer method.

It is to be noted that the small-cap company has conducted all three of its previous buybacks at the same price of ₹550 per share.

A tender offer route involves a company repurchasing shares from its existing shareholders at a pre-determined price, which is typically higher than the prevailing market price.

In 2020, SIS split one equity share with a face value of ₹10 into two equity shares, each with a face value of ₹5.

Additionally, since 2018, the company has distributed ₹9 per share as dividends.

SIS Q3 results highlights

The company reported a net profit of ₹102.1 crore for Q3FY25, marking a 176.6 per cent increase from ₹36.9 crore in the same quarter last year.

The profit margin rose to 3 per cent for the quarter, compared to 1.2 per cent year-over-year.

The company's operational revenue increased by 9.4 per cent year-over-year (YoY), reaching ₹3,362.5 crore compared to ₹3,073.6 crore in the corresponding quarter of the previous year.

EBITDA rose by 3.6 per cent YoY to ₹156.8 crore, up from ₹151.4 crore last year. However, the EBITDA margin experienced a slight decline of 20 basis points, dropping to 4.7 per cent from 4.9 per cent.

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