This smallcap software products firm share rose 20% on Aug 20; here's why

Shares of Nucleus Software Exports were locked in a 20 per cent upper circuit at Rs 1,411.55 per share on the BSE in Tuesday’s intraday deals. This came after the company on Monday announced that its board of directors will meet on August 22 to consider a share buyback, which would be the company's third buyback following those in 2017 and 2021. 

The buyback could be executed via either the tender offer route or the open market route, the company said in an exchange filing. 

For the quarter ended June 30, 2024, the consolidated revenue of the company stood at Rs 195.4 crore, as compared to Rs 206.8 crore in the same quarter of the previous year. This represents a decrease of 5.5 per cent year-on year (YoY)

The consolidated PAT (Profit After Tax) was at Rss 30.2 crore, down from Rs 53.6 crore in the corresponding quarter last year, showing a plunge of 43.5 per cent Y-o-Y. 

The company operates through wholly owned subsidiaries in India, Singapore, the USA, Japan, the Netherlands, South Africa, and Australia. It specialises in software product development, marketing, and support services primarily for corporate clients in the banking and financial services sectors. 

With over 20 years of experience, the company offers a range of solutions including Retail Banking, Corporate Banking, Cash Management, Trade Finance, Internet Banking, and Credit Cards. Its services are categorised into Outsourcing, Software Solutions, Software Support and Maintenance, and Customised Software Development.

The company has a total market capitalisation of Rs 3,779.19.52 crore. Its shares are trading at a price to earnings multiple of 13.08 times with an earning per share of Rs 89.95. 

The share price of the company has dropped 1.7 per cent year to date, while it has gained 38.2 per cent in the last one year.

At 11:27 AM; the shares of the company were locked in the 20 per cent circuit at Rs 1,411.55 per share on the BSE. By comparison, the BSE Sensex was up by 0.56 per cent to 80,873.56 levels.