CMS Info Systems flat after spike on strong Q1 numbers

CMS Info Systems reported a 22 percent YoY jump in net profit in the June quarter.

Shares of CMS Info Systems gave up early gains to trade flat in the afternoon. The stock had jumped 2 percent to an intra-day high of Rs 391, and at 12.56 pm, was trading at Rs 381.85, up 0.4 percent over its previous close.

The cash management and payment solutions company last week reported a 22 percent year-on-year (YoY) jump in net profit at Rs 84.28 crore for the April-June quarter. Profit growth was 5.4 percent quarter-on-quarter.

Quarterly revenues were up 13.72 percent YoY to Rs 518.25 crore and up 2.4 percent sequentially.

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CMS Info CEO and executive vice-chairman Rajiv Kaul said traditionally a weak quarter, the April-June period this time was further impacted by unseasonal rains affecting pockets of rural consumption, and withdrawal of Rs 2,000 currency notes. He said the company was committed to its target of grossing over Rs 2200 crore of revenues in FY25.

IIFL Securities is bullish on CMS Info Systems. It had a "buy" rating on the stock with a target price of Rs 419 in a report dated June 21, 2023. The target price implies an upside of 10 percent from the current market price.

CMS Info Systems stock has given a return of 22.42 percent over the last six months, outperforming the Nifty50 which has gained 7.86 percent during the same duration.