A leading security services provider has entered into a significant partnership valued at Rs. 476 crore, marking a major development in the financial services sector. The multi-year collaboration, set to run until early 2027, will focus on streamlining payment and invoicing operations, promising enhanced efficiency in financial management services.
Share Price Movement
The share price of Dynamic Services & Security Limited hit an upper circuit of 5 percent to Rs. 374 per share on Tuesday, an increase from its previous close of Rs. 356.20 per share. The market capitalisation now stands at approximately Rs. 514 crore as of January 07, 2025.
What’s Driving Share Price?
Dynamic Services & Security Limited (DSSL) has signed an agreement with Orion Security Solutions for a Rs. 476 crore project. From January 4, 2025, to March 31, 2027, DSSL will help Orion with payment collection, invoicing, and expense handling. This deal is with a domestic company under standard terms.
Financial Highlights
In H1FY25, revenue increased to Rs. 73 crore, marking a significant 33% growth compared to Rs. 55 crore in H1FY24. However, in H2FY25, revenue decreased to Rs. 65 crore, reflecting an 11% decline from H1FY25’s Rs. 73 crore.
In H1FY25, profit rose to Rs. 7 crore, showing a remarkable 75% growth compared to Rs. 4 crore in H1FY24. However, in H2FY25, profit declined to Rs. 5 crore, representing a 29% decrease from H1FY25’s Rs. 7 crore.
The average price-to-earnings (P/E) ratio in the services industry is 31.79, which is less than the Dynamic Services & Security current P/E ratio of 44.82.
Market Outlook
The Indian services sector has shown robust growth, achieving $322.72 billion in exports in 2022-23, exceeding targets. With government support and economic growth, exports are expected to reach $400 billion in 2023-24. Opportunities lie in value-added services, geographic expansion, and a thriving domestic market.
A strong business model, experienced management, and satisfied customers further enhance the industry’s potential. This positive trajectory is driven by India’s focus on services and logistics, positioning the sector for sustained growth and development.
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Shareholding Pattern
As of the September 2024 shareholding pattern, Dynamic Services & Security Limited is primarily held by the promoters at 62.34 percent, foreign institutional investors hold 0.09 percent, and the public with 37.58 percent.
About Company
Dynamic Services & Security Ltd., founded in 2001, specialises in providing security guarding and manpower solutions. Over the past two decades, they have built a reputation for reliability, serving high-profile clients like the Indian Army, Navy, Air Force, Indian Railways, and major corporations. Their dedication to innovation and customer satisfaction drives their vision to lead the service-orientated logistics industry.
They offer a range of tailored services such as security consultancy, integrated facilities management, catering, housekeeping, transportation, and IT-enabled solutions. Their expertise spans various sectors, ensuring smooth operations for government agencies, banks, educational institutions, and corporate clients. Recently, they have also ventured into projects like renewable energy and solar power.
With strong foundations of integrity and dedication, Dynamic Services continues to grow, setting new standards in quality and innovation. Their diverse service portfolio and trusted partnerships make them a key player in India’s service industry.
Written By Fazal Ul Vahab C H
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