Nucleus Software shares fall as investors book profits after sharp rally

Shares of Nucleus Software Exports slid as much as 7.0 per cent at Rs 647.50 per share on the BSE in Thursday’s intraday deals. This came as investors resorted to profit booking on the counter after a sharp rally of 30 per cent in the preceding two days. The stock had hit a 20 per cent upper circuit on August 20, while extended the rally on Wednesday. The stock saw the sharp rally after the company on Tuesday announced buyback of euity shares from its shareholders.

On Thursday, the company disclosed further buyback details of up to 448,018 equity shares, representing 1.67 per cent of its total paid-up equity capital, at a price of Rs. 1,615 per share. The total buyback amount will not exceed Rs 72.35 crore approximately. 

This buyback size is less than 10 per cent of the company’s total paid-up equity capital and free reserves as of March 31, 2024. The buyback does not include transaction costs such as brokerage, legal fees, or applicable taxes, the companies said in an exchange filing. 

The buyback size represents 9.90 per cent of the total paid-up equity capital and 9.57 per cent of the free reserves based on audited financial statements for the financial year ending March 31, 2024. The company fixed the record date on September 03, 2024 for the buyback of shares. 

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 3,821.36 crore. Its shares are trading at a price to earnings multiple of 16.90 times with an earning per share of Rs 89.95. 

At 02:54 PM; the stock of the company was trading 6 per cent lower at Rs 1,429 per share on the BSE. By comparison, the BSE Sensex was up by 0.15  per cent at 80,024 levels.