E2E Networks Ltd - Listed small Cloud computing player

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Latest Investor presentation from E2E networks. Seems they are already procured 140 CR on GPU (450 nos of H100 GPUs) from planned 200 to 250 cr this financial year. in last qtr concall, CEO was saying, they would procure 30 to 40 CR GPU in first batch. but looks like they are giving conservative no in concall.

Disclosure: Invested

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Results have just come out. No complaints except reason for rise in other expenses. Revenues have really increased and I can excuse temporary dip in bottom line when company is in high growth mode. Their finance costs have also increased a bit. https://nsearchives.nseindia.com/corporate/Signedfinancials_24052024142750.pdf

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The stock is hitting the circuit from last 5 days, what could be the reason?

The good top line growth on QoQ and future capex plan. Listen to concall to get more clarity.

Key points from the conference call: The FY25 capital expenditure plan is set at 800 crore, to be funded through a mix of equity, debt, and vendor financing. The MRR could increase to 16 cr rupees with full capacity utilization, up from the current 10.8cr rupees. Management is highly confident in their competitive advantage and the industry demand outlook. They are also planning geographical expansions, which will significantly increase their Total Addressable Market

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Thanks for sharing, This looks like repeating in Esconet now. Mcap/Sales at 1.5 and acquired Zea cloud focussed on SME clients. Have you looked at this ? Any thoughts ? thanks

Netweb and Esconet don’t fall under the category of compute providers; rather, they serve as system providers. This is an important distinction because compute providers typically require robust software platforms, comprehensive developer documentation, APIs, and integration capabilities, none of which are their primary focus.

Moreover, both Esconet and Netweb are primarily engaged in the delivery of hardware systems and servers. Therefore, while they could potentially serve as clients in an end-to-end setup, they don’t operate on the same level as compute providers and are better characterized as clients rather than peers in this context.

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Thanks Priyank

Esconet has acquired zeacloud which is in similar space as e2e. You think zeacloud is not competing with e2e ?

Zea Cloud is a typical Infrastructure as a Service (IaaS) provider, not an advanced computing platform which E2E is. Their services are so conventional and basic that you can find at least a handful of similar vendors in India offering the same.

In future if they do develop and launch some new offerings then it can be considered

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