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Thursday, November 13, 2014

Dynacons System & Solutions :532365 But at CMP 10-11 a fast growing IT Smal cap in a niche space



Dynacons System Solution is fast growing small cap company growing at a fat pace.It achieved turnover of 58 crores in 2013 and same got increase by 50% in 2014 and touched revenue of 77 crores it is targeting 100 crores in 2015 and if we go through half year 2014-15 results aleradty achieved 55 crores in six months.

“Due to our increasing customer base and growing customer demands, we have witnessed an overall growth--in our storage business--of over 25 percent year-on-year in the last three to five years,” says Parag Dalal, executive director, Dynacons Systems & Solutions

With seven branch offices and direct touch-points in 72 locations, Dynacons works with IBM, HP, Dell, and EMC for its storage portfolio for a vendor-agnostic approach at its enterprise end.

Dynacons has a roadmap to steadily invest in certification and building skill sets to take the converged storage solutions business to the next level.
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With a dedicated team for its storage portfolio--including sales, pre-sales and technical manpower—the company is forging ahead with its storage offerings.

Profitability was concern in the past but company is now turning into profits with growth in business and could become debt free in future if continues delivering similar results

If as an investor you believe in the business then this is a multi bagger for you to invest with a very low down side risk.I suggest to keep 20%  trailing stop loss and start investing in the stock at current levels.

Good luck!


4 comments:

  1. it is in PCA is it ok to buy such scrips???

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    Replies
    1. I agree with you it is a illiquid stock and investment require very cautious approach that is why trailing stop loss has been recommended.The growth of the company and business model compels to invest and i am sure if business starts doing well the market cap will improve with increase in share price and voulume ant it may come put from PCA.



      SEBI vide circular no. CIR/MRD/DP/6/2013 dated February 14, 2013 issued guidelines for trading in the illiquid scrips through Periodic Call Auction Mechanism which was introduced at BSE w.e.f. April 8, 2013. Stock Exchanges identify illiquid scrips at the beginning of every quarter and move such scrips to periodic call auction mechanism.

      SEBI, based on recommendations of SMAC and feedback received from market participants and Stock Exchanges, vide its Circular No. CIR/MRD/DP/38 /2013 dated December 19, 2013 rationalized the periodic call auction mechanism introduced vide its circular dated February 14, 2013 as under:

      a ) A scrip which trades in the normal market and is not shifted to trade for trade settlement, shall be classified as illiquid on a stock exchange if the following conditions are met:

      i] Average daily turnover of less than Rs.2 lakhs calculated for previous two quarters
      And

      ii] The scrip is classified as illiquid at all Exchanges where it is traded

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