Nucleus Software board to consider share buyback August 22; stock jumps 17.3%
Nucleus Software shares surged over 17% after announcing a board meeting to approve a share buyback, the third in recent years. The stock has rallied 43% from its 52-week low.
Shares of Nucleus Software Exports zoomed over 17 percent in intra-day deals on Tuesday, August 20 after the company announced that the board will meet later this week to approve buyback of shares.
"This is to inform you that, pursuant to Regulation 29(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 a meeting of the Board of Directors of Nucleus Software Exports Limited (“the Company”) is scheduled to be held on August 22, 2024, to inter alia, consider the proposal for Buy Back of Equity Shares of the Company including matters related/incidental thereto in accordance with the applicable provisions under the Companies Act, 2013 (including the rules and regulations framed thereunder), Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as amended, and other applicable provisions," it said in the exchange filing.
This marks the third share buyback for Nucleus Software, following similar initiatives in 2017 and 2021. The last buyback in 2021 was priced at ₹700 per share, and since then, the stock has surged by 69 percent as of Monday's close.
Intra-day High
The stock soared as much as 17.3 percent today to its intra-day high of ₹1,380. Post today's rally, the stock has now rallied 43 percent from its 52-week low of ₹966, hit on September 12, 2023. Meanwhile, it is still 24.5 percent away from its 52-week high of ₹1,830, hit on January 20, 2024.
Recent Performance Trends
Moreover, the scrip has risen over 15 percent in the last 1 year but has fallen 6 percent in 2024 YTD. Just in August, it has shed over 10 percent after 2 straight months of gains. It rose 8 percent in July and over 21 percent in June.
For the June quarter, Nucleus Software reported a consolidated revenue of ₹195.4 crore, down from ₹206.8 crore in Q1 FY24, with a PAT of ₹30.2 crore, compared to ₹53.6 crore in the same period last year. In the preceding quarter, the company had a net profit of ₹52 crore.
Co-founder and Managing Director, Vishnu R Dusad, highlighted the company's focus on lean implementation and adoption in product development for the first quarter of FY 2024–25.
Nucleus Software, an Indian IT firm, specializes in providing IT and consultancy services to the banking and financial services sector.
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