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10 IT stocks that doubled your money in three years

During the window, rupee has depreciated 9 per cent to Rs 72/USD against 66 levels in November 2015.

Swati Verma  |  New Delhi 

investment

Investors in as many as 10 IT companies made money with both hands over the last three years. GSS Infotech has topped the chartbusters' list with over 266 per cent returns during the period. Mastek (up 181 per cent) comes second on the list, followed by Polaris Consulting (up 137 per cent), Genesys International Corp (up 135 per cent) and Infinte Computer Solutions (124 per cent), ACE Equity data shows. In comparison, the benchmark Nifty50 index has risen 35 per cent while the IT pack has grown around 32 per cent.

GSS Infotech specialises in Remote Infrastructure Management Services, Virtualization solutions and Application Management Services. The company claims it is a partner of choice for Infrastructure optimization solutions worldwide. Founded in 1999, the company has global headquarters in Hyderabad.

It has nine Business centers and three Development centers across the globe. The company reported a 141 per cent jump in its net profit at Rs 20 million for September quarter of FY19 against Rs 8.3 million reported in the year-ago period. The company's m-cap stands at Rs 2 billion. Shares of the company currently trades at Rs 117 apiece on BSE.

During the window, has depreciated 9 per cent to Rs 72/USD against 66 levels in November 2015.

Other names in the list include Sasken Technologies (up 118 per cent), Saksoft (up 118 per cent), (117 per cent), (111 per cent) and Datamatics Global Services (102 per cent).


Company Name Closing (as on Nov 12, 2018) Closing (as on Nov 12, 2015) % change
GSS Infotech Ltd. 105.40 28.80 265.97
Mastek Ltd. 483.50 171.90 181.27
Polaris Consulting & Services Ltd. 474.60 200.05 137.24
Genesys International Corporation Ltd. 160.40 68.30 134.85
Infinite Computer Solutions (India) Ltd. 467.35 208.45 124.20
Sasken Technologies Ltd. 681.85 312.40 118.26
Saksoft Ltd. 306.05 140.25 118.22
Ltd. 338.10 156.15 116.52
Ltd. 1192.25 564.60 111.17
Datamatics Global Services Ltd. 114.05 56.60 101.50

is the only company from IT pack in the list that has delivered stellar performance during the period. It reported a strong 29 per cent sequential growth in its consolidated net profit at Rs 1,167 million in September quarter (Q2FY19). The information technology company had reported a profit of Rs 904 million in the same quarter last fiscal.

Revenue during the quarter under review grew 10 per cent at Rs 9,074 million over the previous quarter. Operating profit margins expanded by 217 bps quarter-on-quarter (q-o-q) to 18 per cent from 15.8 per cent in June quarter.

Most brokerages are bullish on the stock post Q2 results. NIIT Tech is trading at 15x FY20E earnings per share (EPS) which is reasonable, considering the strong growth and margin execution, says Prabhudas Lilladher. L&T Infotech is currently trading at 19.3x FY20E. Hence, NIIT Tech is trading at 23 per cent discount to LTI. The brokerage has revised target price upwards by 4 per cent to Rs 1,460. "Our TP upgrade is led by EPS upgrade. Maintain BUY. NIIT Tech remains one of our preferred pick in Midcap IT space," it says.

Sustained deal pipeline, large deal wins, robust growth across verticals, improving client mining & hunting and improving digital revenues is expected to drive top-line and margins in coming years, says ICICI Securities. The brokerage has maintained 'buy' rating on the stock with the target price of Rs 1,365.

Among losers, Visu International has emerged as the biggest loser in the segment with its stock price declining 94 per cent, followed by Brightcom Group (down 89 per cent), 8K Miles Software (down 85 per cent), Palred Technologies (down 85 per cent) and Rolta India (down 84 per cent).

Company Name Closing (as on Nov 12, 2018) Closing (as on Nov 12, 2015) % change
Visu International Ltd. 0.05 0.90 -94.44
Brightcom Group Ltd. 3.05 28.45 -89.28
8K Miles Software Services Ltd. 97.75 669.96 -85.41
Palred Technologies Ltd. 36.50 240.20 -84.80
Rolta India Ltd. 15.60 95.10 -83.60
Panoramic Universal Ltd. 2.25 11.55 -80.52
Axiscades Engineering Technologies Ltd. 80.25 327.45 -75.49
RS Software (India) Ltd. 31.65 121.25 -73.90
Zylog Systems Ltd. 0.80 3.00 -73.33
Onmobile Global Ltd. 34.90 103.60 -66.31

First Published: Thu, November 15 2018. 11:11 IST
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