From Rs 2.40 to Rs 40.85: This penny stock has given 1600% returns in 2 years

Multibagger Alert: If an investor had put Rs 1,00,000 in this IT company in August 2020, it would be worth Rs 17,00,000 today.

Shares of 3i Infotech had given exponential returns in the last 2 years. As per the share price history of this multibagger stock, it has risen 354% in a year. In the same period, the benchmark index, Sensex has given 8% returns. Similarly, in the last 2 years Sensex has delivered a return of 55% compared to 1600% or 16x returns of 3i Infotech.

In monetary terms, the stock price returns of 3i Infotech can be broken down as under-

• Rs 1,00,000 invested 1 year ago would have become Rs 4,54,000 giving a price return of 354%.
• Rs 1,00,000 invested 2 years ago would have become Rs 17,00,000 giving a price return of 1600%.

 3i Infotech is a global Information Technology company which provides technology solutions to over 1500 customers in more than 50 countries across 5 continents, spanning a range of verticals. The company provides software products, IT services and Business Process Outsourcing (BPO) for a variety of industry verticals including Insurance, Banking, Capital Markets, Mutual Funds and Asset Management, Wealth Management, Government, Manufacturing and Retail.

Given the headwinds in the face of US surging inflation, most IT companies bore the pain in their margins although revenues have shown an uptrend. 3i Infotech, in the recently concluded Q1FY23, had reported a top line at Rs 179.1 crore (up by 12% YoY) with a gross margin of 11.4% and an operating PBT of Rs 0.3 crore. The management has guided a target of Rs 760 crore in the topline and a 15% EBITDA margin for FY 2022-23.

Shares of 3i Infotech have logged a 52-week high and low of Rs 119.40 and Rs 6.71.

At 11.10 am, shares of 3i Infotech are quoting at Rs 41.05, with a gain of 0.86% with an intraday high and low of Rs 41.35 and Rs 40.70.