Review

INTELLECT DESIGN ARENA LTD. 

Ticker : 538835  
FV : Rs 5
52-Week H/L : Rs 257.70/44

We had previously recommended Intellect Design Arena in vol. 36, no. 48, dated September 21, 2020, when the scrip was trading at Rs 215.70. It was recommended based on the good quarterly results. The company is a global leader in financial technology for banking, insurance, and other financial services. On a consolidated quarterly front, the net sales grew by 0.9 per cent for Q1FY21 to Rs 345.89 crore from Rs 342.79 crore in Q1FY20. The company reported an operating profit of Rs 75.69 crore in Q1FY21, up by 253.18 per cent from Rs 21.43 crore reported in Q1FY20. Similarly, the net profit increased by 677.98 per cent from Rs 6.22 crore in Q1FY20 to Rs 48.40 crore in Q1FY21. The company recently partnered with Abu Dhabi Bank, Myanma Foreign Trade Bank, and Bank of Bahrain & Kuwait for their digital transformation. Hence, we recommend booking profit on October 5, 2020, at Rs 243.95 with a gain of 13.10 per cent.