Up 5,300% in a year! This smallcap company bags a multi-million order

New Delhi: Astronomical returns from lesser-known companies or the so-called penny stocks are not a new thing for investors, but big order wins along with hefty returns from such companies are a rare phenomenon.

One such example is Cressanda Solutions, which has won a multi-million dollar order after delivering stellar returns to investors. The estimated value of the order is Rs 1,500 crore.

The company has entered into an agreement with a large institutional client for providing tech-powered infrastructure solutions for unaddressed passenger experience in India. The company is poised to innovate, design and deliver large business projects with technology and software services at its core, Cressanda Solutions said in a regulatory filing.

"The software services include development of business applications, data Sciences, cloud, migration, business process optimization, digital media, technology implementation & maintenance services," it added.

In the last one year, shares of this IT services player have zoomed about 5,350 per cent to Rs 32.15 from merely Rs 0.59.

The company made a 52-week high of Rs 51.2 on May 6, 2022, taking the returns to 8,575 per cent. However, the counter has dropped about 37 per cent from its peak, scaled earlier this month.

If you had invested Rs 1,000 in the company a year ago, the value of your investment would have surged to Rs 54,500 today and about Rs 86,800 at its peak.

Mumbai-based Cressanda Solutions is a homegrown company engaged in providing information technology (IT), digital media and IT-enabled services.

The company is trading about 30 times its book value with the promoter holding at just 0.1 per cent. It made profits from other income sources in the last quarter.

Manoj Dalmia, Founder and Director, Proficient Equities said he is not gung-ho after the super bull run in the counter and is sceptical over the fundamentals of the company.

"There are sudden volume spikes which may be accounted for the price rise, although the recent two quarters were profitable," he added. "Investors are advised to stay away from such stocks."

For the smooth execution of the order, the company has also announced to acquire a 100 per cent equity stake in the Bengaluru-based Lucida Technologies, a digital technology company.

Lucida specializes in providing program management to complex projects, development and support services such as supply chain management, data analytics, artificial intelligence/machine learning, full-stack, mobile and robotic processes.

Commenting on the acquisition, Ravi Singh, Vice-President and Head of research, Share India said, with the acquisition of Lucida, the company aims to mark its maiden foray into the fields of artificial intelligence and machine learning.

"It intends to become a one-stop-shop for high-end technological solutions for global consumers," he added. "From the new deal, it expects to leverage scale and enhance existing customer relationships and get more business."

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)