2:1 Bonus Issue: Under Rs 30, This IT Stock Backed by Infibeam Avenues Rallied 20 per cent and Hit Upper Circuit Today; Do You Own It?

The shares of the company have delivered a return of over 98 per cent to its shareholders in just 1 year only.

This Small-Cap IT company, Incorporated in 2012, is an IT services and consultancy company. The company provides software development and offers a complete range of IT and IT-enabled solutions, including mobile app development, website development, AI and automation, enterprise solutions, cloud-based services, and digital marketing services.  Today the company experienced a significant surge in its share price. 

At the start of the day's trading session, the share of DRC Systems opened at Rs 21.84 per share, compared to the previous day's closing figure of Rs 21.84 per share on the BSE. As of the time of writing this article, the shares are currently at Rs 26.20 per share on the BSE. The stock has reached the upper circuit price limit of 20 per cent, reflecting strong demand in the market with no sellers willing to offer shares, resulting in potential buyers being unable to make purchases, leading to disappointment among buyers.  The current market capitalization of DRC Systems stands at Rs 347.06 crore, and the stock has generated an impressive return of around 54 per cent in just 3 months only.

Regarding corporate action recently the company has rewarded its shareholders by issuing bonus shares in the ratio of 2:1 also in 2022 the stock underwent a stock split in the ratio of 10:1. The company has not issued dividends in the past period. 

Financial Performance

As per the Quarterly Results, in the fourth quarter of FY24, the company recorded a revenue of Rs 17.12 crore. The operating profit for Q4 FY24 stood at Rs 4.80 crore, resulting in an operating profit margin of 28 per cent. The net profit for Q4 FY24 was Rs 3.96 crore. Looking at the annual performance, the company generated a revenue of Rs 48 crore in FY24, compared to Rs 26 crore in FY23. The operating profit for FY24 was Rs 15 crore, with a net profit of Rs 12 crore.

Regarding the shareholding pattern, the promoters own 22.44 per cent of the company and the public or retail investors hold 76.88 per cent.

Investors must keep this small-cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.