This Small Cap Stock Has Surged 500% This Year, Analysts Say Rally Not Done Yet

Shares of Aurionpro Solutions have had a meteoric rise this year. Since the start of the year, the stock has surged up over 500%. Despite this incredible rally, analysts at Ventura think the stock still has some steam left.

The Aurionpro Solutions Analyst: Analysts at Ventura initiated coverage on the stock with a target price of ₹2,887 over the next two years. The target indicates a 41% upside from the stock’s last closing price of ₹2,034.

The Aurionpro Solutions Thesis: Aurionpro Solutions, is a software product company, that has established itself as a key player in the financial software sector, emphasising a dual focus on banking and financial software along with the technology innovation group (TIG).

The brokerage highlighted that in the September quarter, the company maintained a robust consolidated order book of around ₹810 crore, providing favourable medium-term revenue visibility. The brokerage added that strategically expanding globally, especially in the US market, presents a compelling investment opportunity for Aurionpro. Substantial investments in sales channels and personnel aim to penetrate large banks, with anticipated discussions and deal sizes 50% to 100% larger than those in Asia.

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The domestic brokerage firm said that the company’s strategic acquisitions and partnerships, particularly with market leaders such as Finastra and Mastercard provide significant growth potential and market expansion opportunity.

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The brokerage in its note prepared Bull and Bear case scenarios for the FY26 Auripro share price based on revenue growth, net margins, and P/E multiples:

  • Bull Case: Assuming revenue of ₹1,600 crores (FY23-26 CAGR growth of 31.7%), EBITDA margins of 22%, and a P/E of 35X, the Bull Case consolidated price target is set at ₹3,655, representing an upside of 86.7% from the current market price.
  • Bear Case: Assuming revenue of ₹1,400 crores (FY23-26 CAGR growth of 28.5%), EBITDA margins of 20%, and a P/E of 25X, the Bear Case consolidated price target is set at ₹2,185, reflecting an upside of 11.7% from the CMP.

Price Action: Aurinpro’s share price was up 2.24% to trade at ₹2,080 on Thursday afternoon.

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Posted In: Analyst ColorEquitiesPrice TargetInitiationMarketsAnalyst RatingsAurionpro SolutionsVentura