Shares of Nucleus Software Exports Ltd. hit the 10% upper circuit limit on Thursday. The stock has jumped nearly 80% in the last two weeks after it reported a nearly threefold rise in net profit for the fourth quarter of FY23.
Shares of Nucleus Software Exports Ltd. surged 10% to Rs 1,119.15 apiece as of 11:02 a.m. on Thursday, compared to a 0.19% advance in the benchmark Nifty 50.
The stock hit the 10% upper circuit intraday. The scrip has gained 79.92% in the last two weeks, since May 22.
Total traded volume stood at 2.9 times its 30-day average. The relative strength index was at 90, implying that the stock may be overbought.
One analyst tracking the company maintains a 'buy' rating on the stock, according to Bloomberg data. The average 12-month consensus price target implies a potential downside of 40.1%.
Last week, the company reported a nearly threefold rise in net profit to Rs 67.7 crore, beating the Bloomberg estimate of Rs 25.5 crore.
Nucleus Software Q4 FY23 (Consolidated, YoY)
Revenue up 34.7% at Rs 206.2 crore. (Bloomberg estimate: Rs 159.3 crore)
Ebitda is up 232.3% at Rs 82.7 crore.
Ebitda margin at 40.1% vs. 16.3%
Net profit is up 269.9% at Rs 67.7 crore. (Bloomberg estimate: Rs 25.5 crore.)
"While growth has been primarily led by revised AMC prices, the increase is a one-time phenomenon," Vishnu R Dusad, managing director at Nucleus Software, told BQ Prime's Niraj Shah.
"I'm confident that this rebalancing will be successful for all the stakeholders, and I see no reason why, despite the increase in price, our customers would feel any interruption in value addition in the future," he said.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
