This tech stock has skyrocketed 209% from 52-week low & has surged over 35% in 4 sessions; is there more steam left?

Buzzing stocks: Shares of software products company, Nucleus Software Exports, have been on an upward trajectory for a while. The stock has rallied as much as 35.7 per cent between May 26 (closing levels) and June 1. Today, the stock hit a high of Rs 1,098.60 in the early trade. On May 26, the scrip settled at Rs 809.2, BSE data show. Today's high was also the fresh 52-week high of the stock. It hit a 52-week low of Rs 355.10 on June 21, 2022. 

At 10:00 am, the scrip was trading nearly 7 per cent higher at Rs 1087.60 on the BSE. In comparison, the S&P BSE Sensex was trading at 62,713.90, up 92 points, or 0.15 per cent. The stock finally ended at Rs 1,121.15 on the BSE, up 10 per cent.

Nirmal Bang Securities said that the company's financial results improved in the March 2023 quarter. Revenue from operations came in at Rs 206.2 crore (up 21.8% QoQ and 34.7% YoY) against Rs 169.3 crore logged in the December 2022 quarter and Rs 153 crore in the corresponding quarter of the previous fiscal. Adjusted profit after tax (PAT) stood at Rs 67.7 crore against Rs. 38.3 crore in the previous quarter and Rs 18.3 crore logged in March 2022 quarter. The earnings before interest, depreciation, tax, and amortisation (EBITDA) came in at Rs 82.7 crore (up 72.8 per cent QoQ and 232.3 per cent YoY) while the EBITDA margin for the quarter under review was 40.1 per cent against 28.3% QoQ and 16.3 per cent in the year-ago period, the brokerage notes.

About Nucleus Software Exports

Nucleus Software Exports software product company that provides lending and transaction banking products to global financial leaders. 

The company claims it powers the operations of more than 200 financial Institutions in over 50 countries, supporting retail lending, corporate banking, cash management, mobile and internet banking, automotive finance and other business areas. Its products facilitate more than 26 million transactions each day, managing over US $200 billion of loans and enabling more than 200,000 users to log in daily.

PROS & CONS

As per Screener. in data, the company's pros are: It is almost debt free and the company has been maintaining a healthy dividend payout of 29.6 per cent. On the other hand, its cons are as below: 

• The company has delivered a poor sales growth of 9.03% over the past five years.
• Debtor days have increased from 75.0 to 100 days.
• Working capital days have increased from -5.76 days to 116 days

FINANCIAL PERFORMANCE 

Source: Screener. in