Dynacons Systems & Solutions is likely to attract investor interest in Tuesday’s trade, May 5, after the company secured a significant new order. In an exchange filing, the company said it had won a major ₹751 crore contract from the Reserve Bank of India.
The order involves the supply, installation, implementation, integration, maintenance, and facilities management services for private cloud infrastructure for the Reserve Bank of India’s data centers at its upcoming new facility in Odisha.
The Reserve Bank of India is setting up a state-of-the-art, energy-efficient Greenfield Next Generation Data Centre in Bhubaneswar and plans to build a robust, scalable, and secure private cloud infrastructure to support its current and future digital, application, and analytics needs, with scope for future AI cloud integration, as per the company’s exchange filing.
Under the order, the company will supply and install servers, storage systems, SAN switches, physical racks, and related software licences, along with providing five years of support.
Dynacons said it will also handle the end-to-end design, installation, implementation, integration, maintenance, upgrades, vulnerability management, and continuous technical monitoring of the solution, while ensuring secure compatibility with the RBI’s AI cloud infrastructure.
Earlier, in February, the company secured a similar order from Punjab & Sind Bank for the implementation and management of an on-premises private cloud infrastructure. The ₹108.88 crore contract involves the supply, design, implementation, and ongoing management of private cloud infrastructure for the bank.
Shares recover 39% in April
The company’s shares staged a strong comeback in April, surging 39% after closing lower in two of the previous three months. The multibagger stock has struggled to find momentum after hitting a new peak of ₹1,736 apiece and has ended 12 of the following 20 months in the red, resulting in a cumulative decline of 44%.
Although the stock has reversed a part of its recent losses, it still trades at a 35% discount to its peak. While the short-term trend appears weak, the stock’s long-term returns remain impressive, as it still trades 191% higher over the last three years and 1,332% higher over five years.
Between April 2021 and August 2024, the stock witnessed a one-way rally, climbing from ₹79.40 apiece to ₹1,526, translating into a massive gain of 1,820%.
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