ESDS dream run continues; zooms 264% against issue price within a week

Share price of ESDS hit a new high of ₹1,560.35 on Thursday, zooming 264 per cent in just four trading sessions against its IPO issue price of ₹429 per share.

ESDS Software Solution share price movement

 

ESDS Software Solution’s (ESDS) stock market dream run continues, as the market price of the information technology (IT) enabled services company jumped four-fold against its issue price within a week.

 

Share price of ESDS hit a new high of ₹1,560.35, surging 10 per cent on the BSE in Thursday’s intra-day deals. It zoomed 264 per cent against its issue price of ₹429 per share. The company made a strong stock market debut with its shares listed at ₹895.55, a 109 per cent premium over its issue price on September 04.

 

At 11:24 AM on Thursday, ESDS quoted 8 per cent higher at ₹1,526.65, compared to a 0.03 per cent rise in the BSE Sensex. The average trading volume at the counter rose 1.5 times with a combined 12.65 million equity shares changing hands on the NSE and BSE.

 

 

ESDS Software – Clarification on price movement

 

There is no undisclosed price sensitive information or any impending announcement/corporate action which is required to be informed to the Stock Exchanges at this point of time and which may have a bearing on the price/volume behaviour in the company’s scrip, ESDS clarified on price movement.

 

Further, the company said it is not aware of any specific reason for the significant movement in the price of its security. The equity shares of the company were listed on the Stock Exchanges on September 04, 2026, and the movement in the price and volume of the security is consistent with trading activity typically observed in a newly listed security. 

 

Such movement is purely market driven and may be attributable to a combination of factors, including prevailing market conditions. The management of the company is in no way connected with the movement in the share price, ESDS said.

 

“ESDS Software has, till date, disclosed to the Stock Exchanges all material information having a bearing on the operations/performance of the Company, including all necessary disclosures required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, within the stipulated time,” the company said. Check - TOP GAINERS NSE | TOP LOSERS NSE

ESDS Software – Brokerages view

 

According to analysts at Choice Institutional Equities, ESDS offers one of the most compelling listed opportunities to gain exposure to India’s structural cloud, data-centre and AI infrastructure build-out, supported by its full-stack capabilities across cloud, managed infrastructure and datacentre services. Growth is underpinned by capacity expansion, deeper customer monetisation and operating leverage, with the $1.25 billion AI contract adding a significant new leg to the earnings trajectory. 

 

Analysts at the brokerage firm expect Revenue/ earnings before interest, taxes, depreciation, and amortization (EBITDA)/profit after tax (PAT) to grow at 120.9 per cent/72.6 per cent/81.3 per cent compound annual growth rate (CAGR) over FY26–29E, driven by core business momentum and the ramp-up of AI infrastructure revenues.  Successful execution and faster ramp-up of the AI contract could provide further upside to earnings and valuation, analysts said. However, the stock currently quotes above the brokerage firm’s target price of ₹1,550 per share.

 

At ₹1,438, ESDS's market cap is roughly ₹16,800 crore against FY26 net profit of ₹121 crore. That is a trailing price to earnings (P/E) in the ballpark of approx. 140x, extraordinarily high for a company with ₹472 crore of FY26 revenue. For comparison, the IPO itself was priced at a post-issue P/E of about 41.6x, said Balaji Rao Mudili, Research Analyst at Bonanza.

 

“A sensible next step would be to wait for the company's first post listing results and an official investor presentation before acting on the AI numbers and to be clear eyed that a stock up over 200 per cent against the IPO price of ₹429 in a week is being driven by momentum and sentiment as much as fundamentals,” added Balaji Rao Mudili. Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.