InvestorQ : Why has Intellect Design stock been rallying so sharply in the last few days?
Priyanka N made post

Why has Intellect Design stock been rallying so sharply in the last few days?

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Neelam Naik answered.
6 months ago
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Intellect Design Arena, the company that was split from Polaris of Chennai, has had a virtual dream run gaining by 1371% since the lows of March 2020. At a time when the Nifty is up around 100%, the stock of Intellect has given returns 7 times the Nifty. The recent rally came after the company confirmed that it was look at double-digit revenue growth and 30% growth in margins in FY22. The company is also positive on deal wins in FY22.

Intellect Design had split from Polaris in FY15 and has been operating as a separate product company. Intellect Design builds software BFSI, NBFCs, central banks, wealth managers and insurance companies. software for the entire banking domain including corporate banks, NBFCs, central banks, retail banks, wealth managers and insurance companies. The company generates 57% revenue from advanced economies, especially the US and Europe.

Intellect Design is slightly different from the traditional IT companies in terms of business design. For example, this company first invests and then gets the returns, unlike the traditional IT companies that are not too investment intensive. Intellect Design has sunk in investments of Rs.2900 crore in the last 20 years.

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