NINtec Systems Share Generated a Multi-bagger Returns

NINtec Systems Ltd – Company Overview

NINtec Systems Limited, headquartered in Ahmedabad, Gujarat, is a dynamic and forward-looking technology company that focuses on software development and innovative solutions. With a global presence, they assist businesses in leveraging the potential of state-of-the-art technology to overcome obstacles and foster progress.

It specialises in delivering customized IT solutions that cater to the specific requirements of its clients. It offers an extensive range of services encompassing application development and maintenance, strategic offshore software product development, legacy system development, and software migration, as well as search engine optimization. It also has expertise in various domains, such as .Net development, game development, PHP development, ERP, wireless, mobile, and WAP development. It has four main business divisions they are Business Analytics, Cloud Services, Application Engineering, Testing Services, AI, and Machine learning. It caters to a wide range of Industries like Automotive, Print media and publishing, BFSI, Transportation and Logistics, Healthcare and Life science, and Manufacturing.It serves 30 Fortune 500 Companies and 100 SMEs across 18 industry verticals.

NINtec Systems – Stock Performance

Today Stock opened at Rs 549, 4.99% up from the previous closing of Rs 522.95 on BSE. On Wednesday, the stock has been locked into the upper circuit of 5% and by the end of the day closed at Rs 522.95. Its 52-week highs and lows are Rs 549.35 and Rs 33.95, respectively. The stock has generated a magnificent return of over 315% in the last six months whereas it has generated a multi-bagger return of over 1500% in just one year. If we check its three-year return, it will blow everyone’s mind having a return of over 9000%. The current market capitalisation of the company is Rs 566.26 Crore. NINtec Systems has consistently outperformed the BSE Sensex in terms of returns, surpassing not only the broader market benchmark but also the renowned IT giant TCS Ltd across various time frames.

NINtec Systems – Financial Performance

In FY23, the revenue of the company experienced a significant surge of 63% from Rs 19.81 crore to Rs 32.30 crore. The operating margin was recorded at Rs 5.81 crore, with an operating profit margin of 18%. Furthermore, the net profit showed remarkable growth, increasing by 100% from Rs 2.77 crore to Rs 5.55 crore. Despite being a small-cap company, it has zero debt on its balance sheet, and its reserves and surplus have grown from Rs 7.02 Crores to Rs 9.05 Crores in FY23. The company has maintained impressive ROCE and ROE figures at 44.4% and 33.4%, respectively. Over the years, the company’s balance sheet size has witnessed consistent growth, expanding from Rs 5.46 Crore in FY16 to Rs 25.55 Crore in FY23. Notably, the company has delivered a commendable profit growth of 83.1% CAGR over the past five years whereas sales grew at a CAGR of 61% in the last three years.

The promoter holding in the company stands at 47.2%, while both FIIs and DIIs do not hold any stake. The public shareholding amounts to 52.8%.

Conclusion

Small-cap IT companies in India have the potential for future growth due to various factors. These include the increasing adoption of technology across industries, digital transformation initiatives by organizations, government support through initiatives like “Digital India” and “Make in India,” outsourcing opportunities, a thriving start-up ecosystem, and a skilled talent pool. By offering specialized services, collaborating with start-ups, and delivering innovative solutions, small-cap IT companies can tap into these opportunities and drive their growth in the Indian market. Investors must keep this stock on their radar.