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Business News/ Markets / Stock Markets/  200% return in 1 year: Multibagger smallcap hits 20% upper circuit on 233-crore govt order; do you own?
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200% return in 1 year: Multibagger smallcap hits 20% upper circuit on ₹233-crore govt order; do you own?

Shares of Dynacons Systems rallied 20 per cent to hit its fresh 52-week high of ₹1,133.40 on the BSE after securing a new government order

Shares of Dynacons Systems rallied 20 per cent to hit its fresh 52-week high markPremium
Shares of Dynacons Systems rallied 20 per cent to hit its fresh 52-week high mark

Shares of smallcap stock Dynacons Systems rallied over 20 per cent a lifetime record-high mark on Tuesday, April 16 after securing a new order for providing core banking solution and upgradation services. Dynacons Systems given multibagger returns to investors over the last one-to-three year time periods.

The surge in share price came after the IT company secured an order worth 233 crores for core banking solution upgradation and migration on a model from the National Bank for Agriculture and Rural Development (NABARD).

Also Read: Dynacons Systems and Solutions: This small-cap stock turned 10,000 into 4.4 lakh in less than 4 years

Dynacons Systems wins 233-crore order from NABARD

The project involves the upgradation and migration of core banking solution (CBS) from Finacle 7.0 to Finacle 10.2.25, operating on the Application Service Provider (ASP) model. The scope of the contract includes serving 1,391 branches of 38 state co-operative banks across eight states.

Under the terms of the contract, Dynacons will deploy its comprehensive suite of services, including consultancy, implementation, customization, and ongoing support. Dynacons aims to minimize disruptions to banking operations while maximizing the benefits of the new Finacle platform. 

The project scope includes CBS upgrade, migration, and maintenance, alongside infrastructure and network enhancements from leading technology vendors such as HPE, Oracle, Fortinet, Array, and Versa, said Dynacons in its statement.

The contract is structured on an Operating Expense (OPEX) basis, ensuring recurring revenue streams throughout the duration of the agreement. The model not only provides financial predictability for both parties but also aligns incentives for support and innovation. Other co-operative banks associated with NABARD can also place their order and participate in the initiative.

Also Read: Multibagger alert: Electronics Mart India share price surges over 240% in 18 months; is there more steam left?

The proposed solution entails implementing CBS (Finacle 10.2.25) in NABARD Data Centre, Disaster Recovery Centre, and associated banks, including all necessary hardware, database, middleware, network components, third-party utilities, and testing. 

The contract spans over five years, with ongoing maintenance support provided to NABARD and associated state co-operative banks, featuring onsite skilled resources and committed Service Level Agreements (SLAs). 

The current version of Finnacle 7.0 application was supplied and managed by Wipro for the last 10 years. ‘’This win will help Dynacons to become one of the leading player as a Systems Integrator in BFSI segment,'' said Parag J Dalal, Executive Director of Dynacons Systems & Solutions.

Dynacons Systems Share Price Today

Shares of Dynacons Systems opened at 929.70 and were locked at over 20 per cent upper circuit to hit a fresh 52-week high mark of 1,133.40, before settling 20 per cent higher at 1,133.40 apiece on the BSE. 

The company's shares have consistently maintained an upward trajectory, starting from their April 2020 value of 17.75 apiece to the current market price, delivering a staggering return of nearly 4,300 per cent. During this period, an investment of 10,000 would have turned into over 4.4 lakh. 

According to Trendlyne data, Dynacons Systems has given better returns compared to Nifty 50 and Sensex in the last one year. In the past one month, the IT company gave 43.63 per cent returns, against 0.57 per cent and 0.41 per cent returns by Nifty 50 and Sensex respectively.

In the last one year, Dynacons Systems has given 206.43 per cent returns to investors as against 24.23 per cent and 20.71 per cent returns by Nifty 50 and Sensex respectively. The Mumbai-headquartered company undertakes all activities related to IT infrastructure and provides service models, such as IaaS (Infrastructure as a Service), PaaS (Platform as a Service), and SaaS (Software as a Service).

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ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 16 Apr 2024, 05:57 PM IST
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