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Infotech Enterprises hits new high, stock surges 100% in four months

FIIs' stake in the company increased to 36.19% in December from 29.73% at the end of September quarter.

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SI Reporter Mumbai
Last Updated : Jan 21 2014 | 1:33 PM IST
Infotech Enterprises has moved higher by nearly 8% to Rs 382, also its record high on BSE, in an otherwise subdued market. The stock opened at Rs 360 and touched a low of Rs 358 so far.

The stock has outperformed the market by surging 106% in past four months from Rs 185, compared to 4% rise in benchmark S&P BSE Sensex and 6% gain in S&P BSE 500 index.

Last week, Hyderabad-based Infotech Enterprises, a provider of engineering and data management solutions, has posted a 4.5% quarter-on-quarter decline in net profit at Rs 68.5 crore for the quarter ended December 2013. The company’s operating profit margin remains flat at 19.6% over the previous quarter.

Our margins were flat owing to significant investments that company is making in future sustainability and growth of business which includes both additional manpower and onetime initiatives, Infotech Enterprises said in a statement.

The management expects stronger second half and equally stronger FY15 on the back of better order backlog and pipeline, strong ramp up in 3 of the top-5 clients and likely opportunity in mapping industry post acquisition of Nokia business by Microsoft.

Meanwhile, the foreign institutional investors (FIIs) have accumulated equity shares of the company with their holding reached at an all-time high. FIIs stake in the company increased to 36.19% in December from 29.73% at the end of September quarter.

 

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First Published: Jan 21 2014 | 1:03 PM IST

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