Multibagger IT stock with 36,000 per cent returns hit upper circuit & 52-week high as the company receives prestigious contract worth Rs 233 crore from NABARD

The company has a market cap of Rs 1,440.91 crore with an ROE of 39 per cent and an ROCE of 37 per cent.

Dynacons Systems & Solutions Ltd (DSSL) informed that the company has a significant contract worth Rs 233 crore (all inclusive) from the National Bank for Agriculture and Rural Development (NABARD). This monumental contract encompasses 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 Coop Banks across 8 states. NABARD, the apex development bank in India dedicated to fostering rural development and agricultural growth, plays a pivotal role as a mentor and facilitator for implementing core banking solutions in the rural financial sector.

This project further underscores NABARD's commitment to embracing cutting-edge solutions to enhance operational efficiency and deliver superior banking services. Under the terms of the contract, Dynacons will deploy its comprehensive suite of services, encompassing consultancy, implementation, customization, and ongoing support. Leveraging its domain knowledge and technical expertise, Dynacons aims to minimize disruptions to banking operations while maximizing the benefits of the new Finacle platform. The project scope includes Core Banking Solution upgrade, migration, and maintenance, alongside infrastructure and network enhancements from leading technology vendors such as HPE, Oracle, Fortinet, Array, and Versa.

Furthermore, this contract is structured on an Operating Expense (OPEX) basis, ensuring recurring revenue streams throughout the agreement. This model not only provides financial predictability for both parties but also aligns incentives for ongoing support and innovation, fostering a mutually beneficial partnership for sustained success. Additionally, other cooperative banks associated with NABARD can also place their order and participate in this initiative, further extending the benefits of modernized banking solutions across the cooperative banking sector.

The proposed solution entails implementing CBS (Finacle 10.2.25) in the 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 5 years, with ongoing maintenance support provided to NABARD and associated state cooperative banks, featuring onsite skilled resources and committed Service Level Agreements (SLAs). The current version of the Finacle 7.0 application was supplied and managed by Wipro for the last 10 years.

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Today, one of the Top Gainers on BSE & NSE, shares of DSSL hit 20 per cent upper circuit to Rs 1,133.40 per share from its previous closing of Rs 944.50. The stock also made a fresh 52-week high is Rs 1,133.40 while its 52-week low is Rs 356.50. with a spurt in volume by more than 5.40 times on BSE.

Dynacons Systems & Solutions Ltd. is a Mumbai-based IT company with nearly three decades of experience that provides a comprehensive range of IT infrastructure services across India. The company has a highly skilled technical workforce spread across more than 250 locations and holds industry-leading certifications. Dynacons offers services that encompass the entire IT infrastructure lifecycle, from design and consulting to turnkey integration, large network and data center setup, and associated equipment and software provisioning. They specialize in cutting-edge solutions like Hyper-Converged Infrastructure (HCI), private/public cloud setup, Software-Defined Networking (SD-WAN) and Storage (SDS), VDI solutions, and multi-location infrastructure management.

The company has a market cap of Rs 1,440.91 crore with an ROE of 39 per cent and an ROCE of 37 per cent. The stock gave multibagger returns of 200 per cent in just 1 year, 1,400 per cent in 3 years and over 36,000 per cent in a decade. Investors should keep an eye on this micro-cap stock.

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