IT stock to buy now for an upside of 58%; Are you holding it?

Synopsis: Aurionpro Solutions, with strong BFS, Transit, and Data Center businesses, is poised for robust growth driven by IP-led platforms, recurring revenue, and R&D. Brokerage initiates a BUY, targeting Rs. 1,352 (58% upside).

The shares of this company, which provides business solutions in the fields of Transaction Banking Platform, Customer Experience (ACE Platform), Smart city and Smart Transportation experience and Cybersecurity solution are in the spotlight after Ventura gave a BUY target on its shares with a 58% upside.

With a market capitalisation of Rs. 4,716 cr, the shares of Aurionpro Solutions Ltd were trading at Rs. 853.50 per share, up from its previous close of Rs. 819.85 per share.  

Ventura on Auripnpro Solutions Ltd 

Market Opportunity

The global Transaction Banking market is projected to grow at a CAGR of ~13.5% through 2031, while the Automatic Fare Collection (AFC) market is expected to grow from USD 11.2 billion to USD 17.9 billion by 2029 (~7% CAGR). 

Aurionpro’s data center capacity is expected to increase from ~1.3 GW in FY25 to ~15–17 GW by FY35 (~30–35% CAGR), driven by cloud, AI, and data localization demand. With its presence across BFS, Transit, and Data Center segments, Aurionpro is well-positioned to capture this growth through IP-led platforms, specialized offerings, and sustained R&D investments (~8–9% of revenue).

Banking Platform Segment

Aurionpro’s banking solutions, including iCashPro and SmartLender, leverage existing bank and financial institution client bases and target an international addressable market of USD 1.2–1.5 billion.

Average deal sizes range between Rs. 60–70 crore for two modules. Recurring revenue through AMC, upgrades, and additional module sales contributes ~60% of revenue. The IP-led model allows operating leverage, supporting margin expansion without high incremental costs. The segment is expected to deliver 25–30% revenue CAGR with 28–30% EBITDA margins.

Transit Segment

In the Transit business, Aurionpro benefits from metro expansion, open-loop upgrades, and system revamps. Its end-to-end solutions increase project value, recurring maintenance revenue, and margins. Key projects include Mumbai Metro (~Rs. 250 crore) and Delhi Metro, with an executable order book of ~Rs. 600–700 crore over the next 4–5 quarters. Margins are expected above 20%.

Data Center Segment

Aurionpro’s Data Center business follows a capital-light, consultancy-driven model. Project sizes range from Rs. 100–125 crore for recent large wins to Rs. 350 crore for the Adani project. Margins are expected to expand from 15–16% to 20–22% as execution scales and hyperscale projects increase.

Valuation and Recommendation

The brokerage has initiated coverage on Aurionpro with a BUY rating at the current market price of Rs. 853.50. The target price is Rs. 1,352 over 24 months, implying an upside potential of 58%. Key risks include competitive pressure, delays in metro and data center projects, and execution challenges.

Company Overview

Aurionpro Solutions Limited (ASL) operates a product-led, IP-driven model with its business divided into two main segments which are Banking & Financial Services (BFS) and Technology Innovation. BFS contributes approximately 54% of revenue, while Technology Innovation contributes around 46%. The company monetises its platforms through licensing, implementation, and maintenance services, with nearly 60% of revenue being recurring.

It has delivered a ~32% revenue CAGR over the past three years, with EBITDA and PAT CAGRs of ~30% and ~36%, respectively. Forecasted consolidated revenue, EBITDA, and PAT CAGRs for FY25–28E are 28.8%, 29.9%, and 29%, respectively. EBITDA margins are expected to remain stable at 17–19%, and ROE/ROIC is projected to expand from 49/440 bps to 17.3/22.7%.

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