200% return in 1 year: Multibagger smallcap hits 20% upper circuit on govt order
The surge in share price came after the IT company secured an order worth ₹233 crores for core banking solution upgradation and migration on a model from the National Bank for Agriculture and Rural Development (NABARD).
Dynacons Systems wins ₹233-crore order from NABARD
The project involves the upgradation and migration of core banking solution (CBS) from Finacle 7.0 to Finacle 10.2.25, operating on the Application Service Provider (ASP) model. The scope of the contract includes serving 1,391 branches of 38 state co-operative banks across eight states.
Under the terms of the contract, Dynacons will deploy its comprehensive suite of services, including consultancy, implementation, customization, and ongoing support. Dynacons aims to minimize disruptions to banking operations while maximizing the benefits of the new Finacle platform.
The project scope includes CBS upgrade, migration, and maintenance, alongside infrastructure and network enhancements from leading technology vendors such as HPE, Oracle, Fortinet, Array, and Versa, said Dynacons in its statement.
The contract is structured on an Operating Expense (OPEX) basis, ensuring recurring revenue streams throughout the duration of the agreement. The model not only provides financial predictability for both parties but also aligns incentives for support and innovation. Other co-operative banks associated with NABARD can also place their order and participate in the initiative.
The proposed solution entails implementing CBS (Finacle 10.2.25) in NABARD Data Centre, Disaster Recovery Centre, and associated banks, including all necessary hardware, database, middleware, network components, third-party utilities, and testing.
The contract spans over five years, with ongoing maintenance support provided to NABARD and associated state co-operative banks, featuring onsite skilled resources and committed Service Level Agreements (SLAs).
The current version of Finnacle 7.0 application was supplied and managed by Wipro for the last 10 years. ‘’This win will help Dynacons to become one of the leading player as a Systems Integrator in BFSI segment,” said Parag J Dalal, Executive Director of Dynacons Systems & Solutions.
Dynacons Systems Share Price Today
Shares of Dynacons Systems opened at ₹929.70 and were locked at over 20 per cent upper circuit to hit a fresh 52-week high mark of ₹1,133.40, before settling 20 per cent higher at ₹1,133.40 apiece on the BSE.
The company’s shares have consistently maintained an upward trajectory, starting from their April 2020 value of ₹17.75 apiece to the current market price, delivering a staggering return of nearly 4,300 per cent. During this period, an investment of ₹10,000 would have turned into over ₹4.4 lakh.
According to Trendlyne data, Dynacons Systems has given better returns compared to Nifty 50 and Sensex in the last one year. In the past one month, the IT company gave 43.63 per cent returns, against 0.57 per cent and 0.41 per cent returns by Nifty 50 and Sensex respectively.
In the last one year, Dynacons Systems has given 206.43 per cent returns to investors as against 24.23 per cent and 20.71 per cent returns by Nifty 50 and Sensex respectively. The Mumbai-headquartered company undertakes all activities related to IT infrastructure and provides service models, such as IaaS (Infrastructure as a Service), PaaS (Platform as a Service), and SaaS (Software as a Service).
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Published: 16 Apr 2024, 05:57 PM IST
