Sunil Singhania Stock In Focus As FIIs Stake Jump 13% In Q4: Buy?

CMS Info Systems is a small cap diversified company that recorded a market cap of Rs 4,972.45 Cr during Tuesday's closing session. An industry leader in business services, CMS Info Systems (NSE,BSE:CMSINFO) offers logistics and technology solutions to banks, financial institutions, scheduled retail, and e-commerce companies in India. Cash Logistics, Banking Automation, Managed Services, Remote Monitoring Solution, and Technology Solutions are among the CMS businesses. It now dominates the markets for industries related to cash logistics, ATM software solutions, and AIoT remote monitoring (Banking section).

After renowned investors including Abu Dhabi Investment, Norges Bank, ValueQuest, and others acquired stakes in the firm through the block transaction that occurred on Friday, the stock has been in the spotlight. A nearly 13.7% stake in CMS Info Systems was sold by Sion Investment Holdings, a subsidiary of the promoter group, for Rs 638 crore on Friday through bulk transactions. As of the March 2023 quarter, Sion Investment Holdings acquired 60.24% of CMS Info Systems, according to BSE holdings. After the most recent transaction, Sion Investment Holdings' shareholding dropped from 60.24 percent at the end of March to 46.54 percent.

Sion Investment Holdings reportedly sold 2,12,40,000 shares at an average price of Rs 300.23 in a bulk transaction on the NSE. Additionally, 9,08,303 shares were sold by Mansi Shares & Stock Advisors Pvt Ltd at an average price of Rs 309.31, bringing the total transaction value to Rs 637.68 crore. The Abu Dhabi Investment Authority (ADIA) bought 20 lakh shares representing a 1.29 percent stake at an average price of Rs 300, while Norges Bank bought roughly 25 lakh shares representing a 1.69 percent stake at an average price of Rs 300, according to bulk transactions data made public by the exchanges.Along with the foreign investors, CMS Info Systems has received further shareholding from three local fund houses: SBI Mutual Fund, 360 One Mutual Fund, and IIFL Mutual Fund, the bulk deals data of NSE showed.

SBI Mutual Fund purchased 67 lakh shares at an average price of Rs 300, 360 One Mutual Fund bought 12 lakh shares, whereas IIFL Mutual Fund added 12,36,111 shares at the same price. While Valuequest Investment Advisors Pvt Ltd acquired 10,08,000 equity shares of CMS Info Systems at Rs 300, Mansi Shares and Stock Advisors Pvt Ltd acquired 9,43,301 shares at an average price of Rs 301.83 in CMS Info Systems.

Commenting on the outlook of CMS Info Systems, V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT) said CMS Info Systems Ltd is a small cap company with market cap is Rs 4,746 Cr. As of now its PE is around 15.95 and its sector which is software services is around 25.25 this indicates it is available at under value as per parameter. As per the data available at NSE, SBI Mutual Fund (67,13,513 shares), IIFL Mutual Fund-IIFL Focused Equity Fund (12,36,111 shares), and 360 One Mutual Fund (12,00,000 shares), purchased its shares at average weighted price of Rs 300 per share. Not only this, some FIIs to be more specific Abu Dhabi Investment Authority, bought 20,00,000 shares. Valuequest Investment Advisors (10,08,000 shares) and Norges Bank on Account Of The Government Pension Fund Global (25,00,000 shares) also purchased CMS Info shares recently.

"This stock got listed in 2021 at 220 (approx.) and from there it made a high of 355 and today it is trading at 320. Price is moving in an ascending channel and its center point, near to its Jan 2022 high. Now a safe and fresh buying opportunity could be above 335 for the targets of 350/360/374/ 380/400 and 420. After 420 price may take a pull back and post that if it is breaking it out again this 420 to 425 range next possible targets could be 450/470/500 in coming 3 months to 1 year time. Because price in ascending channel safest swing support level for stop loss is 260 which is almost 20% from CMP. At daily time frame price is trading at 20- and 200-day EMA and just below its VWAP. MACD already gave a bullish crossover and RSI is 58 at daily time frame. Considering it all it's a good time to enter in it at safe buying above 335 (closing based)," V.L.A. Ambala further added.

Nainesh Thakkar, Head of One Percent Academy by Fisdom said "CMS Infosystems is almost close to its 52 week high of 355.55. However, it has not yet given a close above 338, hence we would look for a conclusive close above 338 level and a crossover above 355 can give it a new journey. RSI is close to 60 (59) and a crossover above 60 on the weekly timeframe will bring in some momentum. The stock is respecting EMA 5 and till it is trading above 5 EMA it should have a positive momentum. On crossover above 355, we can expect the stock to move to 445 levels. The risk reward ratio seems to be favorable for a long trade."

Gaurav Bissa, VP, InCred Equities said "CMS Info has enjoyed strong gains in the last few weeks, but the overall structure of the stock remains range bound. The stock has bounced from the range support of 270 whereas 355 is expected to act as a strong hurdle. The momentum indicators are also inconclusive at this point of time."

A R Ramachandran, Co-founder & Trainer-Tips2trades said "CMS Infosystems looks bearish on the Daily charts with strong resistance at 332. A daily close below support of 310 could lead to a target of 287 in the near term."

The shares of CMS Info Systems closed today on the BSE at Rs 322.05 apiece down by 0.77% from the previous close of Rs 324.55. The stock touched a 52-week-high of Rs 355.55 (18/11/2022) and a 52-week-low of Rs 212.55 (20/06/2022). As per the shareholding pattern of CMS Info Systems, Sunil Singhania, through its Fund 'Abakkus Growth Fund-2', holds a 1.04 percent stake or held 16,11,678 fully paid up equity shares of the company valued at Rs 53 crores. During Q4FY23, CMS Info Systems recorded promoters shareholding of 60.24%, FIIs stake of 13.12%, DIIs stake of 12.57% and public stake of 14.04%.

Disclaimer

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