Shares of Nucleus Software Exports fell by as much as 7% to Rs 647.50 per share during intraday trading on Thursday, following a significant profit-taking move by investors. The decline comes after the stock surged by 30% in just two days, spurred by the company’s announcement of a share buyback program.
On August 20, Nucleus Software’s shares hit a 20% upper circuit limit, and the momentum continued through Wednesday. The rally was driven by the company’s decision to repurchase equity shares, which fueled investor optimism. However, the subsequent profit booking led to a notable drop in share prices.
The company revealed additional details about the buyback on Thursday, disclosing plans to repurchase up to 448,018 equity shares, amounting to 1.67% of its total paid-up equity capital, at a price of Rs 1,615 per share. The total buyback amount is capped at approximately Rs 72.35 crore. This buyback represents 9.90% of the total paid-up equity capital and 9.57% of the free reserves based on audited financial statements for the year ending March 31, 2024. The record date for the buyback is set for September 3, 2024.
Financial performance for the quarter ending June 30, 2024, showed a decline, with consolidated revenue falling to Rs 195.4 crore from Rs 206.8 crore a year ago, marking a 5.5% decrease. Profit After Tax (PAT) also dropped significantly by 43.5%, from Rs 53.6 crore in the previous year to Rs 30.2 crore.
Nucleus Software, which operates through subsidiaries in various countries including India, Singapore, the USA, Japan, and others, focuses on software product development and support services for the banking and financial services sectors. Despite its recent challenges, the company boasts a market capitalization of Rs 3,821.36 crore, with shares trading at a price-to-earnings ratio of 16.90 times and earnings per share of Rs 89.95.
As of 2:54 PM, Nucleus Software’s stock was trading 6% lower at Rs 1,429 per share on the BSE, while the BSE Sensex showed a modest increase of 0.15% to 80,024 levels.
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