Dynacons Systems and Solutions Limited Small Cap IT Stock with 100x Returns

Dynacons Systems and Solutions Limited is an information technology (IT) solutions company engaged in systems integration, including the sale of IT products and services. Its segments include System Integration and Technology Workforce Augmentation Services. There is a significant surge in the Dynacons Systems and Solutions share price today.

Share Performance

At the start of the day’s trading session, the stock opened at Rs 930 per share, lower compared to the previous day’s closing figure of Rs 936.55 per share on the BSE. Furthermore, the company’s stock crossed a significant milestone of Rs 1000 for the first time ever. Last month, the stock hit an all-time high of Rs 955 per share and fell around 28% from this high, finding support at around Rs 670 to Rs 700 levels.

Today, it not only crossed the previous peak levels but also surpassed Rs 1000 per share, starting trading at all-time high levels. According to the technical chart, the company’s shares debuted in the Indian market at around Rs 10 each in November 2011. From this price level, the shares have grown 100 times during this time period.

The company’s current market capitalisation stands at Rs 1348 crore, and the stock has generated an impressive return of around 990% during the past three years and around 41,876% return in the past decade.

Stock Chart (Monthly)

Financial Performance

In the third quarter of FY24, the company reported revenues of Rs 227 crore, reflecting a growth of 32% YoY compared to the same quarter in the previous year, when the revenue stood at Rs 172 crore. The company posted an operating profit of Rs 19 crore for the quarter, in contrast to an operating profit of Rs 12 crore in the corresponding quarter of the previous year. Furthermore, the company reported a net profit of Rs 13 crore, compared to a net profit of Rs 8 crore in the same period last year. However, the company’s net profit has surged by around 62% YoY this quarter.

The company’s ROCE and ROE are 36.5% and 38.9% while the shares are trading at 25.6 times in the market.

In terms of ownership, the Promoter holds 61.10% while 38.90% is held by public investors as per the most recent update.

Company Overview

Dynacons Systems and Solutions Limited is an information technology (IT) solutions company engaged in systems integration, including the sale of IT products and services. Its segments include System Integration and Technology Workforce Augmentation Services. The company undertakes all activities related to IT infrastructure, including infrastructure design and consulting services, turnkey systems integration of large network and data center infrastructures, supply of associated equipment and software, HyperConverged Infrastructure (HCI) solutions, setup of private and public cloud, software-defined network solutions, onsite and remote facilities management of multi-location infrastructure for domestic clients. It provides end-to-end technology and technology-related services to corporations across industry verticals, offering service models such as infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS).

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.