Review

XCHANGING SOLUTIONS

Ticker : 532616
FV : Rs10
52-Week H/L : Rs 99.7/25

We had previously recommended Xchanging Solutions Ltd in volume no. 37, issue no. 11 (dated January 04, 2021), when the scrip was trading at Rs 86.20. It was recommended based on the growth potential of the IT sector. On the consolidated financial front, for Q2FY21, the company posted an 11.08 per cent increase in the net sales to Rs 52.03 crore from Rs 46.84 crore posted for Q2FY20. Operating profit expanded by 9.36 per cent to Rs 18.34 crore in Q2FY21 compared to Rs 16.77 crore in Q2FY20. Xchanging Solutions reported a net profit of Rs 15.05 crore for Q2FY21, declining by 20.66 per cent from Rs 18.97 crore reported in Q2FY20. Stocks in the IT sector such as Xchanging Solutions recently, witnessed a strong rally after the sector leaders reported positive results for Q3FY21; thus, uplifting the overall outlook for the sector. Hence, we recommended investors to ‘BOOK PROFIT’ in Xchanging Solutions at Rs 95.25 as of January 18, 2021, with a gain of 10.5 per cent.