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Four IT Multibaggers Remained Untouched By Demonetization

Dynamic Equities Pvt Ltd | 19 Dec, 2016  | Follow Author | Add to my Favourites 
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Demonetization has shaken up many indices and sectors. It was announced on November 8th and its impact on the market was visible on 9th November. On 22nd November, the market traded on its low with Nifty small cap slipping to 5408 levels while the Benchmark Index Nifty itself declined to 7916 levels on 21st November.


India's information technology sector is one that has escaped the dismal impact that demonetization has had on economic activity in the country. India is a vast market and when there is a disruption of the kind like demonetization, it is for technology companies to fill in the void. Following the November 8 demonetization of high-value currency, the government has instigated a campaign to increase digital transactions in order to move to a "less cash" economy.


Admitting that there are evident and unseen costs in reducing cash volume in the economy, the government last week declared a series of 11 measures designed to increase the speed of digital payments. The tech sector has benefited from demonetization. The way in which IT companies run their businesses are getting disrupted and challenged. But, whenever there is disruption, it creates opportunities. In effect, the technology sector has been strong in India.


Below are four Multibaggers from the IT Sector to keep a watch on.


Trigyn:


Trigyn has been providing services to the Government for over three decades. Its major clientele comes from the City and State of New York, North California, Washington DC, New Jersey, Minnesota among others. It also serves to United Nations Organizations and World Intellectual property organization. It is its clientele that immuned Trigyn to the dismal impact of Demonetization.


Since 21st November, Trigyn share price gained over 52 per cent, the most among the IT majors. On 21st November, the stock closed at Rs 82.25 and On December 16th it closed at the price of Rs. 125.10. On 16th December, the stock had closed after gaining over 7 per cent in an otherwise range bound market. On 9th December, the stock witnessed the highest traded and deliverable quantity of approximately twelve lakh shares and three lakh shares respectively at the low of Rs. 103.15.


Quick Heal Technologies:


The cashless India drive has been a boon for the company. The Pune-based company provides internet security and antivirus products for computers, servers and mobile phones. With increasing number of transactions and susceptible data going online, the demand for Quick Heal's products and services is likely to rise. Quick heal technologies share price is up over 22% since Demonetization and is trading at 22 times FY17 earnings. The company has a strong business model with over 30% market share of the software security industry and has stable earnings and cash flows. Any correction can be a good opportunity for investors.


L&T Infotech:


L&T Infotech is a subsidiary of engineering & construction major Larsen & Toubro. The company figures among India’s top 10 IT service providers and is a new listing on NSE. It is presently looking to pursue strategic acquisitions in Germany and France to improve capabilities and address gaps in language capability, industry & technical expertise and geographic coverage in these countries.


Larsen & Toubro Infotech share price has gained over 13 per cent from Rs. 600.50 on November 21st to close at Rs. 679.20 on 16th December 2016. The highest traded quantity of the stock of over one lakh had been on 15th December on the low of Rs. 667.05 and the highest deliverables of over 80 thousand shares have been on 14th December at the low of Rs.648.80.


Hinduja Global:


Hinduja Global Solutions Limited, jointly with its subsidiaries, provides information technology (IT) and IT enabled services in India as well as internationally. The company provides outsourcing solutions, including back office processing, contact center, and customized IT services; and voice and non-voice related customer contact and business process outsourcing services. The company also offers customer relationship management programs integrating inbound contact center, Internet, database marketing among other services.


Hinduja Global share price closed at Rs. 538.60 on December 16th, gaining over 11 per cent since its close of Rs. 483.75 on 21st November 2016. The company also paid the dividend of Rs. 2.50 on 22nd November 2016.



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About Dynamic Equities Pvt Ltd

Dynamic Equities Pvt. Ltd. is a a SEBI Registered Investment Advisor and Stock Broker, a leading financial services provider, and one of the major players in the Equity markets in India. With an experience of over 15+ years in Stock Markets and Equity Research, they provide daily updated Support & Resistance of 4200 instruments across 93 exchanges and 56 countries globally. They have an in-house team of over 25 analysts. Under the guidance and mentorship of Mr. Shailesh Saraf, MD of Dynamic Equities Pvt. Ltd., these analysts are dedicately involved in guiding their clients and users of the website www.dynamiclevels.com for trading in the market. Mr. Shailesh Saraf has an experience of over 24 years in the financial market, especially in capital & derivatives market operations, trading, research and management related areas. Dynamic Levels is a website owned by Dynamic Equities Pvt. Ltd. The website can be reached at www.dynamiclevels.com.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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