A small-cap stock specializing in IT infrastructure solutions surged nearly 13 percent after securing a follow-up order worth Rs. 108 crore from NABARD to provide core banking solutions for the Haryana State Cooperative Bank.
Share price variations:
With a market capitalization of Rs. 1,641.84 crores, Dynacons Systems and Solutions Ltd. rose to an intraday high of Rs. 1,345.55 per share representing a 12.81 percent increase from its previous closing price of Rs. 1,192.70 per share. Additionally, its shares have delivered a multi-bagger return of 102 percent on a year-to-date basis.
Reason for the Rise:
According to exchange filings, Dynacons Systems and Solutions Ltd has received a follow-up order worth Rs. 108 crore from the National Bank for Agriculture and Rural Development (NABARD). The project upgrades the Core Banking Solution from Finacle 7.0 to 10.2.25 on an ASP model, with comprehensive support, maintenance, and infrastructure enhancements using technology from HPE, Oracle, Fortinet, Array, and Versa.
The project covers 615 branches across 20 State Cooperative and District Central Cooperative Banks in Haryana. Structured on an Operating Expense (OPEX) model, the contract ensures recurring revenue streams over the agreement’s duration.
Recent Projects:
In September, the company was awarded a project valued at Rs. 142.55 crore by the Bank of Maharashtra to implement and maintain a Hyper-Converged Infrastructure (HCI) solution supporting the bank’s private cloud.
In July the company secured a Rs. 119 crore contract from the Central Bank of India to develop a private cloud infrastructure. Earlier in April, the company received a contract worth Rs. 233 crore contract from NABARD to upgrade and migrate its Core Banking Solution.
Financial Performance:
For Q1FY25 the company reported a net profit increase of 25.69 percent to Rs. 17.61 crores compared to Rs. 14.01 crores in Q1FY24, while revenue from operations marked an increase of 8.58 percent to Rs. 320.97 crores from Rs. 295.58 crores in comparison to the same period.
In FY24 the company reported a Return on Equity(ROE) of 41.02 percent increasing from 38.73 percent in FY23 and a Return on Capital Employed (ROCE) of 43.38 percent rising from 35.82 percent over the same period.
About the company:
Dynacons Systems & Solutions Ltd is an IT System Integrator and Managed services organization offering IT Infrastructure solutions as well as outsourcing services to enterprises. Dynacons undertakes all activities related to IT infrastructure including infrastructure design and consulting services, turnkey systems integration and set up of large network and data center infrastructures.
Written By: Joseph Pv
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