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

In the world of investments, small-cap stocks often stand as both a symbol of volatility and a beacon of opportunity. These companies, with a smaller market capitalisation compared to their larger counterparts, can deliver surprises to investors who are willing to navigate the unpredictable terrain of the stock market.

Amidst this backdrop of risk and reward, Dynacons Systems & Solutions has emerged as one of the biggest wealth creators. 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 of ₹781, delivering a staggering return of nearly 4300%. 

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During this period, an investment of ₹10,000 would have turned into over ₹4.4 lakh. Impressively, out of the last 45 months (including February), the stock ended 28 in the green. 

Looking at the stock's yearly performance, it achieved a multibagger return of 162% in CY20, followed by a stellar return of 151% in CY21. This momentum persisted into CY22 with a 112% return, and in CY23, it continued to rise with a gain of 77%.

Dynacons Systems & Solutions is a 27-year-old IT company with global perspectives, with its headquarters in Mumbai. It undertakes all activities related to IT infrastructure and provides all service models, such as IaaS (Infrastructure as a Service), PaaS (Platform as a Service), and SaaS (Software as a Service). 

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On January 30, the company won the Best Nutanix Performance Award for the Year 2023 from a global leader, Hewlett Packard Enterprise (HPE). 

This year, the company secured multiple orders. On January 12, it won a significant contract worth ₹90 crore from BSNL for providing integrated telecom network & IT solutions, including the command centre and network operations centre. 

Additionally, on January 06, it secured a ₹214 crore order from Union Bank of India for hyper-converged infrastructure and software solutions. Another notable project worth ₹137 crore was won from Bharat Heavy Electricals. 

In terms of financials, the company performed well in the December quarter, with a 62% YoY increase in consolidated net profit to ₹13 crore and a rise in revenue from operations to ₹227 crore from ₹172 crore in Q3FY23.

During the first nine months of the current fiscal year, the company's net profit soared to ₹40 crore from ₹22 crore in the year-ago period. Additionally, its total income increased to ₹743 crore in the first nine months of this fiscal, compared to ₹578 crore in the corresponding period of the previous year.

Given the proliferation of the Internet of Things (IoT) devices, alongside the increased mobility of computing power and AI-driven tools, the conditions are favorable for substantial growth in edge computing.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.