Tata Elxsi, KPIT Tech, Happiest Minds, Mphasis — These mid and small cap IT stocks have become multibaggers in last one year

Tata Elxsi performed very well in the last one year with its shares surging 325%. In the June quarter, the Tata Group company posted a 64% year-on-year rise in its net profit at ₹113.38 crore. The company's growth was driven by both its key businesses of embedded product design (EPD) and industrial design and visualisation (IDV).

Tata Elxsi provides design and technology services across industries including automotive, broadcast, communications, healthcare and transportation.

KPIT Tech is another midcap IT stock that surged more than 300% in the last one year. The company reported a 148% jump in net profit to ₹60.24 crore for June quarter.

The growth momentum could continue as the company is chasing large deals (greater than $50 million in value and over four years) in new software architecture and electrification, said brokerage Philip Capital, reportedly.

The stock of the company jumped 276% in the last one year. Its revenues increased by 41% on year to ₹331 crore in June quarter.

To increase the revenue from other parts of the world, it is looking to acquire companies where it wants to expand its business. “We are constantly looking for [acquisitions]...active discussions are ongoing with more than a few [companies],” said Venkatraman Narayanan, managing director (MD) and chief financial officer (CFO) at Happiest Minds Technologies in an interview with Business Insider.

The stock surged 252% in the last one year. Net profit of Intellect Design Arena, a small cap company rose 73.03% to ₹73.73 crore in June quarter 2021 and sales rose 18.06% to ₹408.35 crore.

The company is now focusing on achieving double digit growth for the year FY22.

The stock gained 212% in the last one year. In the June quarter, its revenue grew 27.3% on year to $ 166.8 million, driven by continued traction in the services business.

HDFC Securities has given an ‘add’ rating to the company’s stock because of its stellar first quarter and a steady deal momentum. The company’s growth leadership is based on strong new deal wins driven by healthcare and life-sciences and banking, financial services and insurance (BFSI) verticals, improved client mining, robust headcount addition, said the brokerage firm.

The company offers cloud, data, product and design-led services to BFSI, healthcare and hi-tech verticals.

The stock gained 173% in the last one year. The company reported a strong 74% on year jump in consolidated net profit at ₹86.7 crore for the June quarter. Sales rose 33.19% to ₹1,268.54 crore in June 2021 as against ₹952.44 crore in June 2020.

Sonata Software is a global IT service and technology solutions company.

The stock of the company surged 150% in the last one year. The Hyderabad-based global engineering and technology solutions company reported 41.3% on year increase to ₹81.4 while its revenue grew by 6.7% to ₹1,058.2 crore.

The company expects double-digit growth in services business for FY22.

The stock gained 143% in the last one year. Net profit of Zensar Technologies rose 37.79% to ₹101 crore in June 2021 as against ₹73.30 crore in June 2020.

“We maintain ‘BUY’ on Zensar, following a better-than-expected performance and revival in the organic growth engine. Zensar delivered growth of 4.8% on quarter constant currency, the best organic growth in the past six years, supported by a recovery in the hitech vertical and strong banking and financial services performance,” said a report by HDFC Securities.

Shares of the company surged 141% in the last one year. The IT firm formerly known as NIIT Technologies reported a 54.7% jump in consolidated net profit at ₹123.6 crore in the three months to June.

“With a signed order book, net headcount addition, and large deal size that have set a new record for the firm, Coforge is primed to deliver robust, predictable and profitable growth,” said Sudhir Singh, chief executive officer, in June quarter earnings statement.

Shares of the company gained 132% in the last one year. The company reported an 84% year-on-year jump in net profit at ₹216.2 crore in June quarter, largely on widening margins.

''To further scale and strengthen our technology and capability advantage, we have identified six strategic investment areas – electric autonomous and connected vehicle, 5G, medtech, digital manufacturing, artificial intelligence & machine learning driven smart offerings and sustainability,'' said Amit Chadha, chief executive officer and managing director at L&T Technology Services in a June quarter earnings statement.

Shares of the company jumped 129% in the last one year. The Bengaluru-based IT services company reported a 23.4% increase in consolidated net profit at ₹ 339.6 crore while revenue from operations grew 17.5% to ₹2,690.8 crore in June quarter.

“We maintain BUY on Mphasis and reiterate it as our preferred pick in mid-tier IT, given a stellar Q1 and high visibility on delivering industry-leading growth,” said a report by brokerage HDFC Securities. The company is an IT solutions provider specialising in cloud and cognitive services.

The stock climbed 96% in the last one year. The subsidiary of the country's largest infrastructure developer -- Larsen & Toubro reported 19.3% year-on-year growth in net profit at ₹496.8 crore for the quarter ended June 30 with revenue rising 17.4% to ₹3,462.5 crore.

“We are pleased to report our best ever Q1 sequential growth of 5.1% driven by holistic growth across our verticals, service lines, client pyramid and geographies. Our healthy pipeline and continued strong demand make us confident of future growth,” said Sanjay Jalona, chief executive officer and managing director at L&T Infotech.