Magellanic Cloud, one of the country's leading IT service companies, has provided its shareholders with significant returns as the company share price soared from a November 2021 low of ₹9.30 apiece to the current price of ₹325.40, yielding a tremendous return of nearly 3400%.
After finishing CY21 with a decent gain of 10%, the stock in the subsequent year delivered a multi-bagger return of 516.25%, jumping in value from ₹20.45 to ₹120.45. The stock has continued at the same magnitude in the current year so far, delivering a return of 170%.
Remarkably, the stock closed five out of the last seven months in the green, with March recording the highest monthly gain of 44.25%, closely followed by July with a notable rally of 42.14%. In addition, the stock marked a new historic high of ₹344.90 on July 27. The company's shares have been trading ex-bonus in a 3:1 ratio since March 22.
Magellanic Cloud is an IT services in software development, consulting, and Human Resource business solutions organization offering transformational as well as outsourcing services, including listing employment vacancies and referring or placing applicants for employment.
For the March-ending quarter (Q4FY23), the company recorded a net profit of ₹18 crore, a significant improvement compared to a net profit of ₹2 crore in the same period last year. Its revenue from operations for the quarter reached ₹115 crore, 74.24% higher than the ₹66 crore generated in Q4 FY22.
The EPS (Earnings Per Share) during the quarter improved to ₹1.54 from ₹0.16 in the year-ago quarter. At the prevailing price, the stock trades at a price-to-earnings multiple of 51.4x, which is slightly lower compared to the industry P/E of 56.7x.
Looking at the overall fiscal year 2022–23, the company achieved a net profit of ₹74 crore, marking an improvement from the net profit of ₹29 crore in the previous fiscal year. The total revenue for FY23 stood at ₹427 crore, a 69% increase from ₹253 crore in FY22.
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