Nucleus Software Shares Surge 20% As Q4 Profit Soars Nearly Threefold

The stock continued to rise for the third day, with the latest surge driven by strong earnings announced on Friday.


The company's net profit rose nearly threefold to Rs 67.7 crore, beating the Bloomberg estimate of Rs 25.5 crore.

Nucleus Software Q4 FY23 (Consolidated, YoY)

  • Revenue up 34.7% at Rs 206.2 crore. (Bloomberg estimate: Rs 159.3 crore)
  • Ebitda is up 232.3% at Rs 82.7 crore.
  • Ebitda margin at 40.1% vs. 16.3%
  • Net profit is up 269.9% at Rs 67.7 crore. (Bloomberg estimate: Rs 25.5 crore.)

"While growth has been majorly led by revised AMC prices, the increase is a one-time phenomenon," Vishnu R Dusad, managing director at Nucleus Software, told BQ Prime's Niraj Shah.

"I'm confident that this rebalancing will be confident for all the stakeholders, and I see no reason why despite the increase in price, our customers would feel any interruption in value addition in future," he said.

Shares of Nucleus Software surged 20% to end at Rs 971.15 apiece, the most since Feb. 14, compared to a 0.54% gains in the Nifty 50.

The average traded volume so far in the day stood at 33.5 times its monthly average, while the relative strength index was at 91, indicating the stock may be overbought.

The one analyst tracking the company maintained a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies a potential downside of 31%.