Aurionpro Solutions, a small-cap stock, has witnessed a staggering surge in its value in a short period of time. Its shares were trading at ₹ 308 levels on April 01, 2023, i.e., at the beginning of this financial year. Its share price has skyrocketed to ₹ 888 apiece as of 02:35 PM on Wednesday, giving multibagger returns of 188.31% and turning an investment of ₹ 1 lakh to ₹ 2.88 lakhs in less than three months.
The company’s shares witnessed a remarkable rally of 1485% in the past three years, as its share price rallied from ₹ 56 to the current level. During this period, an investment of ₹ 1 lakh would have turned to ₹ 15.85 lakhs!
Aurionpro Solutions is a technology solutions company. It offers a range of solutions catering to various customers which includes large banks and financial institutions, governments, government undertakings and other business organizations.
The stock gained traction on May 05, 2023, after its subsidiary Aurionpro Payment Solutions Pvt Ltd. received in-principle approval from the Reserve Bank of India (RBI) to operate as a payment aggregator under the Payment and Settlement Act, of 2007.
The company’s platform— “AuroPay” seeks to offer a bouquet of e-payment options which are safe, secure, user-friendly and affordable. It aims to become a one-stop shop offering a wide range of services in the payment ecosystem globally, catering to e-commerce businesses as well as small and medium enterprises, which are rapidly adopting digital technologies.
This development led to the stock breaking record highs. Moreover, it reported stellar results, that contributed to the upward movement of its share price. Its revenue surged 38.69% to ₹ 190.66 crores in the January to March Quarter of 2023 (Q4FY23), against ₹ 137.47 crores in the corresponding quarter of the previous fiscal (Q4FY22). Its profit surged 23.35% to ₹ 26.60 Crores in Q4FY23, against ₹ 21.57 Crores in Q4FY22.
For the entire financial year (FY23), the company reported a revenue of ₹ 659.33 crores, up 30.56% against ₹ 505.01 crores in the previous year (FY22). Its profit came in at ₹ 101.89 crores in FY23, as compared to ₹ 75.57 crores in FY22.
In another development, its subsidiary Integro signed a partnership with Finastra, a global provider of financial software applications and marketplaces, to offer its SmartLender Trade Limits solution alongside its own Trade Innovation solution.
Aurionpro Solutions is a small-cap company with a market capitalization of ₹ 1,932 crores. It has an ideal return on equity of 21.76% and an ideal debt-to-equity ratio of 0.18. Its shares were trading at a price-to-earnings ratio (P/E) of 19.86, which is significantly lower than the industry P/E of 67.24, indicating that might be undervalued as compared to its peers.
Written By Simran Bafna
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