Will this Multibagger AI Stock hit 20 per cent upper circuit on February 16?

On Friday, the shares of Blue Cloud Softech Solutions Ltd ended the trading session in green, jumped 3.44 per cent to Rs 23.77 per share from its previous closing of Rs 22.98 per share with a 1.10 times Spurt in Volume on BSE. The stock’s 52-week high is Rs 38 per share and its 52-week low is Rs 14.95 per share.

A question arises: Will this multibagger AI Stock hit 20 per cent Upper Circuit on February 16?

The following factors explain why this stock is expected to reach its 20 per cent upper circuit in February

Explosive Financial Growth and Margin Expansion

The primary catalyst for a bullish run is the company's stellar Q3 and 9M FY26 performance, which showcases both top-line growth and disciplined bottom-line execution. Revenue for the nine months surged to Rs 723.38 crore, a substantial leap from Rs 613.24 crore in the previous year. More importantly, the company demonstrated high operational leverage; while revenue grew steadily, EBITDA jumped from Rs 51.63 crore to Rs 77.57 crore and Profit After Tax (PAT) for the nine months spiked by nearly 55 per cent to reach Rs 48.39 crore. This trend of increasing profitability and expanding margins suggests that BCSSL is successfully scaling its AI and cybersecurity offerings with high efficiency.

Strategic Acquisitions and Scalable Infrastructure

Investor confidence is further bolstered by the successful acquisition of AIS Anywhere, which has now become a wholly-owned subsidiary. Because the Q3 results only reflect a partial consolidation of AIS Anywhere’s financials, the market is pricing in a "coiled spring" effect where the full impact of this acquisition's revenue and profitability will hit future quarters. Additionally, BCSSL’s ambitious announcement to invest up to USD 1 billion in AI-powered next-generation data centres signals a transition from a service provider to a massive infrastructure player, placing it in the elite league of companies capable of handling global AI demand.

High-Impact Partnerships and Sector Diversification

Beyond the balance sheet, BCSSL has secured critical "moats" through strategic collaborations in high-growth sectors like 5G and Automotive AI. The partnership with Orange for BSNL 5G Fixed Wireless Access (FWA) and the MoU for Edge AI System on Chip (SoC) in automotive cybersecurity validate the company’s technical prowess. Successful real-world deployments, such as the AIoT healthcare project in Hyderabad and Proof of Concepts with Konkan Railway, prove that BCSSL’s technology is not just theoretical but actively generating value in the public and private sectors. This diversified footprint in Defence, healthcare and telecom provides the multifaceted growth narrative that typically precedes a circuit-breaking rally.

About the Company

Since its founding in 1991, Blue Cloud Softech Solutions Limited (BCSSL) has evolved into a global leader in AI-driven enterprise solutions, specialising in defence, cybersecurity and digital transformation across eight countries. The company distinguishes itself by integrating high-speed 5G Fixed Wireless Access (FWA) with scalable data center infrastructure to provide secure, mission-critical connectivity for public infrastructure and railways. Through continuous investment in Semiconductors and next-generation AI platforms, BCSSL delivers resilient, innovation-led services that drive long-term value and operational excellence for its international clientele.

The stock is up by 59 per cent from its 52-week low of Rs 14.95 per share and has given multibagger returns of 390 per cent in 5 years. The company's shares have a PE ratio of 15x, an ROE of 45 per cent and an ROCE of 37 per cent. The company has a market cap of over Rs 1,700 crore and Promoters Bought a 3.93 per cent stake in the company in December 2025 compared to September 2025.

Disclaimer: The article is for informational purposes only and not investment advice.