Shares of this information technology (IT) stock under the ‘micro-cap’ category have proven to deliver multibagger returns of over 25,000 percent returns during a long-term period of ten years.
With a market capitalization of Rs 850.44 crores, the shares of Dynacons Systems & Solutions Limited closed at Rs 670 on Friday, gaining approximately 3.20 percent as compared to the previous close of Rs 649.50 apiece. The company’s stock reached its 52-week high level on 31st October 2023 at Rs 847.
According to the data available from the Bombay Stock Exchange (BSE), the company’s stock has given multibagger returns of approximately 25,000 percent over a period of ten years ranging from Rs 2.66 in November 2013 to the current stock price levels.
The same means that if someone had invested Rs 1 lakh into the stock, it would have converted to around Rs 2.51 crores within the above-mentioned period.
Coming onto the latest financial reports, the company, quarterly, has faced a dip in operating revenues as well as net profits.
The operating revenues decreased from Rs 295.58 crores during Q1FY23-24 to Rs 219.86 crores during Q2FY23-24, and, the net profits, in congruence, reduced from Rs 14.01 crores to Rs 12.57 crores keeping the timeframe the same.
In the past couple of financial years, the metrics mentioned above have shown a positive and consistent increase in its profitability metrics.
The most recent movement in the return on equity (RoE) was a jump from 28.63 percent during FY21-22 to 39.18 percent during FY22-23, and, the return on capital employed (RoCE), during the same period, increased from 28.25 percent to 37.08 percent.
According to the latest shareholding data available for the quarter ended September 2023, the company’s Promoters hold a 61.10 percent stake followed by the Public (retail) investors holding the remaining 38.90 percent stake in the company.
Dynacons Systems & Solutions Limited is a company based in India that is engaged in the business of providing end-to-end technology and technology-related services.
The company undertakes various activities related to IT infrastructure, including turnkey systems integration of large networks, infrastructure design, consulting services, and data center infrastructures.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
