ESDS Software Solution share price is on a roll. The stock has surged 200% in just three sessions post-listing, inflating investors’ money by threefold.
ESDS Software Solution shares have been seeing strong gains since their debut on the Indian bourse on Friday, 4 September.
On Tuesday, 8 September, the stock opened at ₹1,187.95 against its previous close of ₹1,074.65 and surged 20% to its upper circuit of ₹1,289.55. At this price, the stock has surged 201% from its IPO price of ₹429.
Even in the previous session on Monday, 7 September, the stock hit a 20% upper circuit.
ESDS Software Solution shares were listed at ₹757 on the NSE on 4 September, a 76.46% premium over the IPO issue price of ₹429 per share. On the BSE, it opened at ₹746.30, a 73.96% premium over the issue price.
ESDS Software Solution is an AI-enabled provider of cloud, managed services, data centre infrastructure, and software solutions in India.
Its revenue from operations for FY24 was ₹286.52 crore, rising to ₹361.34 crore in FY25 and ₹472.21 crore in FY26. Profit attributable to its owners was ₹12.57 crore in FY24, ₹55.61 crore in FY25, and ₹120.28 crore in FY26.
ESDS Software Solution IPO opened for public subscription on Friday, 28 August, and closed on Tuesday, 1 September, with a strong subscription of 100 times.
What should investors do?
Brokerage firm Choice Equity Broking has initiated coverage on ESDS Software Solutions with a ‘buy’ recommendation, pegging the target price at ₹1,550, valuing the company at 18 times FY28E EV/EBITDA, using a DCF as a sanity check.
Choice said ESDS offers one of the most compelling listed opportunities to gain exposure to India’s structural cloud, data centre, and AI infrastructure build-out due to the company’s full-stack capabilities across cloud, managed infrastructure, and data centre services.
“Growth is underpinned by capacity expansion, deeper customer monetisation and operating leverage, with the $1.25 billion AI contract adding a significant new leg to the earnings trajectory,” said Choice.
The brokerage firm expects ESDS Software Solution’s revenue, EBITDA, and PAT to grow
at 120.9%, 72.6%, and 81.3% CAGR, respectively, over FY26–29E, driven by core business momentum and the ramp-up of AI infrastructure revenues.
“Our 18 times FY28E EV/EBITDA valuation implies nearly 31 times FY28E forward P/E, which we believe appropriately reflects ESDS’s strong growth profile. Successful execution and faster ramp-up of the AI contract could provide further upside to earnings and valuation,” said Choice Equity Broking.
According to Shivani Nyati, Head of Wealth at Swastika Investmart, one can consider booking partial profits at current levels while retaining the remaining holding with a stop-loss around ₹650–680.
Nyati further added that those who did not receive an allotment should avoid chasing the stock after its steep rally and suggested waiting for a pullback toward ₹600–650 before evaluating a fresh entry.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
