Shares of Dynacons Systems and Solutions Ltd gained 7% in the first half of Wednesday’s session after the company received an order worth ₹ 214 crores from a Public sector bank.
At 11:30 a.m., Dynacons Systems and Solutions shares were trading at ₹ 700.15per share, up 4.91% from the previous close price on the National Stock Exchange. Dynacons Systems belongs to the micro-cap category with a market capitalization of ₹ 891 crore.
Dynacons Systems and Solutions received an order worth ₹ 214 crores from Union Bank of India for Supply, Installation, configuration, implementation, and support for HyperConverged Infrastructure and Software Solution for the Expansion of the Bank’s On-Premises Private Cloud under Rate Contract. The period for the execution of the order is 5 years.
The stock climbed by 24 percent in the last six months from ₹566.80 to current levels, while it grew by 49 percent in a year from ₹469.85 to current values.
Dynacons Systems & Solutions Limited (DSSL) was established in 1995 and provides IT infrastructure systems integration, networking solutions, facility management services, security solutions, and software services.
According to a year-on-year comparison of financials, the Company’s revenue declined by 10 percent from ₹246 crores in Q2FY23 to ₹220 crores in Q2FY24. Within the same period, the net profit climbed by 44 percent, from ₹9 crore to ₹13 crore.
As per the latest shareholding pattern, the company’s promoters own a 61.1 stake in the company, while retail investors own a 38.91 percent stake.
As of January 2024, the company has having order book of more than ₹ 940 crores and it caters to a wide variety of clients ranging from Government to PSU companies such as LIC, NPCI, etc, and also provides services for banking companies like Bank of India, Axis Finance, etc. Further, the company has also extended its services to global companies such as H&M, McAfee, etc.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 24.16 % during FY 21-22 to 31.93 % in FY 22-23, and, the return on capital employed (RoCE) zoomed from 36.87 % to 44.07% during the same timeframe. Furthermore, the net profit margin increased from 2.15 percent during FY 21-22 to 4.15 percent during FY 22-23.
Written by Omkar Chitnis
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