Shares of information and communications technology (ICT) company Sify Technologies (NASDAQ:SIFY) jumped as much as 24% on Monday, and are up 17% at the time of this writing.
While there doesn't seem to be a cut-and-dried reason for the move today, the stock has undoubtedly benefited from a very bullish run recently, suggesting that today's move could simply be a continuation of this momentum. It's up 314% in the past six months, 90% in the past month, and 66% in the last five days alone.
Sify also normally reports its third-quarter earnings in January. So the stock's move could represent large investors buying a meaningful stake before earnings.
Of course, the move may also be unrelated to any specific factor. Sometimes small-cap stocks like Sify can see volatility without any news.
The India-based ICT company has benefited from strong growth recently. Revenue, EBITDA, and net profit increased 10%, 13%, and 29%, respectively, in its most recently reported quarter.
"Last quarter, we had announced our Vertical go-to-market strategy across all our business segments," said Sify CEO Kamal Nath about its second quarter. "I am happy to share that a mix of our Vertical strategy and our unique positioning as an ICT Services Provider and Integration partner for our clients, has resulted in sustained growth in order book, revenue and profitability."
With such a significant rise in Sify's stock price recently, investors will now expect more from Sify's underlying performance. Its price-to-earnings ratio has climbed from about 25 at the beginning of the year to around 40 today.