Nucleus Software Exports Limited is a leading global banking software powerhouse providing innovative and revolutionary products, services and solutions since 1989.
Nucleus Software Economic Analysis
The company has registered robust results for the quarter ending December 2013. Overall income from maneuver has augmented by 20.54 percent at Rs 89.96 crore for quarter under review as match up to to Rs 74.63 crore for the quarter ended 31 Dec’ 2012. The increasing penetration in new markets has given a positive momentum. Operating profit climbed sharply by ~55 percent at about Rs.19.59 crores as against Rs.12.63 crores in the previous year cut up. Cost of salvation counting surcharge of product development is 59.6 percent of revenue as against 63.4 procent of revenue in the previous quarter. The company has reported 89.68 percent rise in its net profit at Rs 23.39 crore for the quarter as compared to Rs 12.33 crore for the same quadrant in the previous year.
Revenue from product business for the quarter is at Rs. 61.41 crore against Rs. 49.67 crore, a prosper of 23.63 percent y-o-y. Merchandise revenue from individual business, for the sector is at Rs. 58.77 crore against Rs. 48.28 crore, a jump of 21.73 percent y-o-y. Projects and services dealing revenue for the sector is at Rs. 28.55 crore against Rs. 24.96 crore, moved up by 14.39 percent.
Revenue contribution from the top 5 clients for the quarter stood at 40 percent; similar to the previous quarter. The natural features Africa, Middle East and India posted good growth for the quarter ended Dec’ 2013. Japan remains more or less the equal.
Nucleus Software Strong Product Base
The degree book position is Rs.233 crores including Rs.156.75 crores of products business and Rs.76.50 crores of projecs and services business as on 31st December 2013. The gathering won 8 new product orders planetary in third quarter ended FY2014.31 restored outgrowth modules implementations went live across geographies. The new integrated transaction-banking product has gone live at one of the customers in the quarter December 2013. Two more are expected to go live in the coming quarter. The new product covers the entire spectrum of transaction banking, i.e.Payments, Receivable Collections including EIPP which is Invoice Presentment and Payments, Liquidity Management and Pecuniary Supply Bond Management. There is also good progress on the restored FinnOneTM version that the company has been working on. The company continues to do well in the markets where they hold strong boutique share polysyndeton plans to increase its presence in the markets where they have one or two implementations only. A larger contribution to revenues comes from FinnOneTM as of now but in the coming residence venture banking percentage is expected to go up. Nucleus plans to launch new products going ahead which will add to the revenues the future
Nucleus Software Company Valuation
With new product launches and increasing penetration in new characteristics, burly market share with good customer associations and improving productivity; Nucleus Software Exports Ltd. growth looks promising. We deem Nucleus Software is trading at a charming valuation at 9.71x plus 8.21x of FY14EPS of Rs.17.60 and FY15 Earning Per Share of Rs.20.82. we are recommending buying at Rs. 180-170 levels for investment horizon; it may tactic Rs. 230 in a time period 3-6 months
Bse Id: 531209
Nse Id: NUCLEUS
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