CMS Info Systems shares surge 59% from 52-week low, what lies ahead?

Shares of CMS Info Systems have surged 59% from their 52-week low in the last five months. The shares of the cash management and payment solutions company surged to an intraday high of Rs 337.95 against the 52-week low of Rs 212.55 hit on June 20, 2022. In fact, the stock surged to a 52-week high of Rs 352.20 on November 15 (previous session) . However, they closed lower at Rs 330.30 on BSE.

The firm reported a 37% rise in net profit at Rs 73 crore in the September quarter against Rs 49.06 crore profit in the corresponding quarter a year ago. Sales climbed 27% to Rs 472 crore in Q2 delivering an operating margin of 29.1 per cent, which rose 320 basis points from the year-ago quarter at Rs 137 crore. EBITDA zoomed 42% to Rs 137 crore in September quarter.

The firm reported a 42 per cent rise in net profit to Rs 142 crore for the first half ended September 2022. Operating margins in H1 surged 390 bps to 28.5%.  Revenue in the first half of the current fiscal surged 25% to Rs 925 crore.

In the first quarter of the current fiscal, consolidated net profit jumped 46.80% to Rs 69.01 crore on a 22.57% rise in sales to Rs 453.30 crore in Q1 FY23 over Q1 FY22. 

On the prospects of the stock, Abhijeet from Tips2trade said, “Good Q2FY23 results followed by a decent pullback in the IT sector stocks have led to a strong uptrend in CMS Info Systems as well. Technically, the stock is overbought and hence investors are advised to book profits at current levels and wait for initiating fresh buy positions near  Rs 286- Rs 292 levels."

In the current trading session, the shares of CMS Info Systems touched an intraday high of Rs 337.95, rising 2.32% on BSE. CMS Info Systems share are trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.Market cap of CMS Info Systems surged to Rs 5,168 crore in the afternoon session today.

The stock made a tepid market debut last year. Shares of CMS Info Systems listed at a premium of 1.94% at Rs 220.20 on NSE compared to the issue price of Rs 216 on December 31, 2021. The company offered its shares in a price band of Rs 205-216.

On BSE, the stock listed at Rs 218.50, 1.16% higher to the IPO price.

CMS is a cash management and managed services provider. The cash management segment includes ATM cash management, retail cash management and cash in transit. The managed services include banking automation, brown label ATM, managed services, software solutions and remote monitoring.

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