Microcap Multibagger: An investment of Rs 1 lakh in this software company has grown to Rs 13 lakh

The shares have hit the upper circuit limit price of Rs 644.90 each and concluded the session at Rs 642.70 on the BSE.

The shares of CG-VAK Software & Exports experienced a sharp rise today. The stock opened at Rs 630, 2.6 per cent up from the previous day's closing price of Rs 614.20. During the intraday session, the stock surged by 5 per cent during the intraday trading session with significant trading volume.  Finally concluded the session at Rs 642.70 which is 4.64 per cent up from the previous day’s closing price. Moreover, the shares have hit the upper circuit limit price of Rs 644.90, The stock's 52-week highs and lows are recorded at Rs 715 and Rs 304, respectively.   

With a market capitalization of just Rs 325 Crore, the stock has displayed remarkable performance in recent times, delivering a 72 per cent return in the last three months and an impressive 288 per cent return in the last two years.  Furthermore, the return generated by the shares over the last three years would leave investors stunned, which is around 1273 per cent.  

Financial Performance: 

In FY23, revenue experienced a substantial increase of 43 per cent YoY, going from Rs 54 Crore to Rs 77 Crore.  The operating profit of the company was Rs 18 crore along with a margin of 23 per cent. The net profit of the company amounts to Rs 12 Crore, which is a 33.33 per cent YoY increase from Rs 9 Crore recorded in FY22. The company's ROCE and ROE are at 31.6 per cent and 25.2 per cent, respectively. Furthermore, the price-to-earnings ratio is 24.4 times. The book value of Rs 106 per share.

Regarding ownership, the promoters hold 53.87 per cent stakes in the company, while both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) do not hold stakes in the company. Public Investors hold 46.16 per cent of the company. 

Business Overview: 

CG-VAK is a multimillion-dollar public limited organization, with over two decades of time-tested experience for clients across the globe. As a global software provider headquartered in India, CG-VAK employs over 525 professionals across the globe. 

The company offers top-notch and affordable solutions, enabling clients to harness the power of Information Technology to enhance their competitive edge through improved client services. Guided by the principles of "Ideate. Innovate. Create," it drives business transformation by delivering Digital Innovation, Product Innovation, and Modernization at a rapid pace for your organizations and enterprises. 

The company is primarily engaged in delivering IT solutions, with core expertise lying in software products and services. Presently, its main priority is catering to clients located in the USA, Canada, UK, Australia, Ireland, New Zealand, Europe, and India. With a collective business experience of more than three decades, the company has spent 23 years excelling in the fields of IT business, Manufacturing, and international trade.