Indian stock markets are rising day after day with Sensex and Nifty having an annual return of 29-32%. There were many blue-chip stocks which have vastly outperformed these stellar returns in the corresponding period such as HDFC Bank, Maruti Suzuki, Tata Steel, Reliance Industries, Bharti Airtel, Titan, DLF, Indiabulls Housing Finance. Specifically, among the IT sector, the benchmark Nifty IT index had surged about 24% in the last one year period with underlying shares such Mindtree, KPIT, TCS, Tata Elxsi, and Wipro rising between the range of 30 to 60%. In the last three months, Nifty IT index had advanced about 16% and even today, Nifty IT gained 0.75% to hit a 52-week high of 12,728.95. We bring to you a small-cap IT stock below Rs 60 which had doubled investors wealth in last three months to buy and gain up to 30%.
Shares of Compuage Infocom have nearly doubled in the last three-month period. The stock of Compuage Infocom had jumped about 98% to Rs 53.65 from a price level of Rs 27.15 three months earlier. The research and brokerage firm HDFC Securities has given a target price of Rs 69.3 which implies a premium of 29.17% from the current market price. “The stock is currently trading at 7.4x FY20E EPS. We feel investors could buy the stock at the CMP and add on dips to Rs.42-44 (6.5x FY20E EPS) for sequential targets of Rs.56 (~8.5x FY20E EPS) & Rs.69.30 (~10.5x FY20E) over the next 4-6 quarters,” HDFC Securities said in a report.
The stock of Compuage Infocom is small-cap share and is categorised under ‘B’ group of BSE. Compuage Infocom commands a market capitalisation of Rs 311.31 crore on BSE. Shares of Compuage Infocom have a face value of Rs 2, ISIN number: INE070C01037 and a security code: 532456. Compuage Infocom had doubled its turnover in last 5 years and didn’t incur a loss in the past 10 years. “Catering to the growing IT and mobile (smartphone) market in India, its revenues are expected to rise in proportion with the number of resellers and brands it adds,” HDFC Securities said.
India’s stock market opened higher on Monday with Sensex and Nifty beginning at fresh record highs amid the optimism over third-quarter earnings. BSE Sensex gained 102.39 points or 0.29% to start at 35,613.97 with the shares of ONGC rising the most among the 31 stocks of the key index while NSE Nifty lost 11.5 points to begin at 10,883.2. Shares of Asian Paints, Axis Bank, Dewan Housing Finance, Havells India, Rallis India, Vakrangee and Justdial will be in close watch ahead of their respective third-quarter earnings later today. Going ahead in a holiday-shortened week ahead, earnings of blue-chip companies such as Axis Bank and Maruti Suzuki as well as derivatives expiry will likely to steer the domestic equities.