Rs 56 to Rs 1,000 in three years: Multibagger IT stock hits record high on growth outlook

Shares of multibagger Aurionpro Solutions Ltd hit their all-time high in the current session  a day after the IT services firm said it has grown at a compound annual growth rate (CAGR) of 26% from 2005 to  2023. During its investor and analyst day presentation on June 14, the firm said it revenue rose from Rs 100 million in 2005 to Rs 6,590 million in 2023, thereby building foundation for a decade of high growth. 

Additionally, Malabar India Fund purchased 2.63 lakh shares or 1.15 percent stake in the technology company at an average price of Rs 880.23 per share via bulk deals on June 14. However, foreign portfolio investor Indus Valley Holdings Pte Ltd offloaded 2 lakh shares in the company at an average price of Rs 881.38 per share. 

Aurionpro Solutions stock has rallied over 1,439% in the last three years. The multibagger stock, which closed at Rs 56 on June 12, 2020 rose to Rs 1005.15 on the BSE today (June 15, 2023). An amount of Rs 1 lakh        invested in the shares of multibagger Aurionpro Solutions three years ago would have turned into Rs 17.94 lakh today. In comparison, Sensex has risen 90 per cent during the period. 

In the current session, the stock was stuck in the upper circuit of 5% at Rs 1005.15 on BSE. Aurionpro Solutions stock opened 4.88% higher at Rs 1004 today against the previous close of Rs 957.30 on BSE. Market cap of the firm rose to Rs 2392.27 crore.  

In terms of technicals, the relative strength index (RSI) of the Aurionpro Solutions stock stands at 85, signaling it's trading in the overbought zone. Aurionpro Solutions shares have a beta of 1.4, indicating high volatility in a year. Aurionpro Solutions shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. 

The stock of Aurionpro Solutions has risen 240% in a year and gained 193% in 2023. Total 0.62 lakh shares of the firm changed hands amounting to a turnover of Rs 6.26 crore on BSE. Market cap of the firm rose to Rs 2,389.54 crore on BSE.         

The company in the investor presentation mentioned its long-term goals, which led to positive sentiment around the stock today.  The company is aiming for a revenue growth rate at 25%-30% per annum and a PAT margin of over 15% in the long term, it said. It is also eying 75% of in-year growth from the existing base. The company plan to keep its EBITDA margin above 20% in the future and spend consistently on R&D at 7-8%. It also intends to maintain return on capital employed (ROCE) over 25% in the long term.  

Seven promoters held 33 per cent stake in the firm and 13,099 public shareholders owned 67 per cent for the quarter ended March 2023. Of these, 12,234 public shareholders held 37.24 lakh shares or 16.34% stake with capital up to Rs 2 lakh. Only 54 shareholders with 17.14% stake held capital above Rs 2 lakh for the quarter ended March 2023.  

Financial Performance      

In the March 2023 quarter, the firm reported a 32.21% rise in profit at Rs 25.08 crore against Rs 18.97 crore profit in the corresponding quarter of the previous fiscal. Sales climbed 38.69% to Rs 190.66 crore in the March 2023 quarter against Rs 137.47 crore in the March 2022 quarter. Operating profit zoomed 33.69% to Rs 40.44 crore for the quarter ended March 2023 against Rs 30.25 crore in the corresponding quarter of the previous fiscal.    

In the last fiscal, sales zoomed 30.56% to Rs 659.33 crore against sales of Rs 505.01 crore in the previous fiscal. Net profit zoomed 37.72% to Rs 97.33 crore in FY23 against Rs 70.67 crore in the previous fiscal. Operating profit surged 30% to Rs 145.04 crore for the March 2023 fiscal against Rs 111.58 crore in the previous fiscal.    

About the Company      

Aurionpro Solutions is an advanced technology solutions company catering to the needs of the Banking, Mobility, Payments and Government sectors. It converges multiple technology solutions under one umbrella, acting as one platform for Advanced and Accelerated Platform-led Transformation, guiding businesses to ADAPT to a new paradigm in the digital world order.

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