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Rs 64 to Rs 543: This IT stock was on fire for five months

An investment of Rs 1 lakh in this stock on May 21 this year would have turned to Rs 8.5 lakh on October 8

Aseem Thapliyal | October 23, 2020 | Updated 09:35 IST
Rs 64 stock turned to Rs 543 in five months giving investors 748% returns
Ramco Systems stock has risen over eight times in 5 months

Ramco Systems share has emerged as a multibagger during the coronavirus crisis. Ramco Systems stock has risen over eight times in 5 months. An investment of Rs 1 lakh in this stock on May 21 this year would have turned to Rs 8.5 lakh on October 8. On April 21, the stock fell to its 52-week low of Rs 64 on BSE. On October 8, the share touched a fresh 52-week high of Rs 543, logging a rise of 748% in five months.

The share fell to its 52-week low when the market was affected by negative sentiment due to Covid-19 crisis. In comparison, the software products firm's peers have lagged behind in terms of returns on bourses in five months.

While Tata Elxsi shares could rise 93.37%, the stock price of  another software major Nucleus Software could gain 213% during the same period. Share price of Accelya Solutions India Ltd saw a meagre 15% gain during the period.

The meteoric rise in the share price can be attributed to strong financial performance of the firm.

The firm reported a 368% rise in Q1 net profit at Rs 13.82 crore against profit of Rs 2.95 crore in Q1 of last fiscal. The company reported a 4% rise in Q1 net sales to Rs 145.25 crore against Rs139.67 crore during the period ended June 30, 2019. In the March quarter of the previous fiscal, the firm logged a loss of Rs 5.85 crore, thereby leading to a 332% rise in quarter on quarter profit.

Rakesh Jhunjhunwala earned Rs 2.71 crore per day with this stock for 100 sessions

Net sales rose 9.32% to Rs 145.25 crore against Rs 132.87 crore sales in the  March quarter.

Renowned investor Vijay Kedia buying stake in the software firm also led to positive sentiment around the stock.

On  June 10, 2020, Kedia bought 339,843 shares, representing 1.1 per cent of the total equity of the firm. The stock zoomed 91% in the next five trading sessions.

Jhunjhunwala earned Rs 5.6 crore per day with this stock for 111 sessions

Of late, the share has fallen 11.84% in the last four sessions. The stock touched an intra day low of Rs 448, a loss of 4.66% today. The share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.

Total 0.66 lakh shares of the firm changed hands leading to turnover  of Rs 2.99 crore.

In one year, the stock has gained 210% and risen 168% since the beginning of this year. In a month, the share has gained 21%.

The stock closed 3.63% or Rs 17.05 lower at Rs 453 on BSE.

Ramco Systems is engaged in computer programming, consultancy and related activities, and hosting and related activities. The company offers software solutions and services. Ramco Logistics Software caters to logistics-third party logistics (3PL), freight forwarders and network service providers.

Rakesh Jhunjhunwala made Rs 42 crore with this stock in three months

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