This smallcap stock turned Rs 1 lakh to over Rs 15 lakh in 13 months

• Follow

Intellect Design Arena, which has recently achieved the Unicorn status in 7 years since it got demerged out of Polaris, has been buzzing on Dalal Street due to its outstanding performance amid the ongoing rally since March 2020 lows.

Shares of the company have soared nearly 1,470% to Rs 707.20 on April 13, 2021 from Rs 45.05 on March 25 last year. The increase in share price indicates that an investment of Rs 1 lakh in Intellect Design Arena in March last year would have now become Rs 15.70 lakh. Prior to March 25, 2020, shares of the company stood rangebound since 2014.

Brokerages are bullish on the prospects of Intellect Design for the long term. Dolat Capital in its research report on March 25 said that the company has achieved its dollar billion valuations at the enterprise levels but it owns many business units in its fold that has the potential to achieve dollar billion valuations individually.

“We continue to remain optimistic on its prospects given expanding addressable opportunities in its key segment iGTB, strong demand and traction for its cloud accelerator offerings, improved adoption for micro-services led product with composable approach, widening canvas led by its AI-powered data platform that can extend beyond BFSI and network impact emanating from its strong reference ability led by unmatched ratings, awards and recognitions,” the brokerage said.

Intellect Design Arena is engaged in the business of providing a financial platform for corporate banking, retail banking, brokerage solution, treasury management and insurance software.

ICICI Securities added that healthy traction in IGCB and iSEEC is expected to drive revenues for Intellect Design Arena. This coupled with penetration in the US market, digital-ready product portfolio, healthy order book, huge addressable and underpenetrated market and improved annuity revenues are key long term drivers of revenues. In addition, improving cash flow and deleveraged balance sheet prompt us to be positive on the stock from a long term perspective.