Microcap Multibagger: An investment of Rs 1 lakh in this software company has grown to Rs 14.36 lakh

The shares of CG-VAK Software & Exports experienced a sharp rise today. The stock opened at Rs 490, 2.42% up from the previous day’s closing price of Rs 478.40. During the intraday session, the stock surged by 20% with significant trading volume.

Upon analysing today’s share volumes, it is evident that there has been a substantial increase of more than 10.58 times in volumes than the average daily volume on the BSE. While writing this article, the shares of the company are up by Rs 95.65, trading at Rs 574.05 on the BSE.

Moreover, the shares have hit the upper circuit limit price of Rs 574.05, reaching a new 52-week high price. The stock’s 52-week highs and lows are recorded at Rs 574.05 and Rs 296.05, respectively.

With a market capitalization of just Rs 290 crore, the stock has displayed remarkable performance in recent times, delivering a 66% return in the last three months and an impressive 237% return in the last two years.

Furthermore, the return generated by the shares over the last three years would leave investors stunned, which is around 1360%.

Chart presentation of the stock on a weekly time frame

Financial Performance

In FY23, revenue experienced a substantial increase of 43% YoY, going from Rs 54 crore to Rs 77 crore. The operating profit of the company was Rs 18 crore along with a margin of 23%. The net profit of the company amounts to Rs 12 crore, which is a 33.33% YoY increase from Rs 9 crore recorded in FY22.

The company’s ROCE and ROE are at 31.6% and 25.2%, respectively. Furthermore, the price-to-earnings ratio is 24.4 times. The book value of Rs 106 per share along with a price-to-book value of Rs 5.41 per share.

Regarding ownership, the promoters hold 53.87% stakes in the company, while both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) do not hold stakes in the company. Public Investors hold 46.16% of the company.

Business Overview

CG-VAK is a multimillion-dollar public limited organization, with over two decades of time-tested experience for clients across the globe. As a global software provider headquartered in India, CG-VAK employs over 525 professionals across the globe.

The company offers top-notch and affordable solutions, enabling clients to harness the power of Information Technology to enhance their competitive edge through improved client services. Guided by the principles of “Ideate. Innovate. Create,” it drives business transformation by delivering Digital Innovation, Product Innovation, and Modernization at a rapid pace for your organizations and enterprises.

The company is primarily engaged in delivering IT solutions, with core expertise lying in software products and services. Presently, its main priority is catering to clients located in the USA, Canada, UK, Australia, Ireland, New Zealand, Europe, and India. With a collective business experience of more than three decades, the company has spent 23 years excelling in the fields of IT business, Manufacturing, and international trade.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.