The company's robust September quarter results added fuel to the rally led by the sale of the promoter's stake in the last week. The company's sales almost doubled to Rs 149 crore and net profit grew six fold to Rs 64.31 crore.
The company's promoters, who held 78 per cent stake in the company as on June 2006, sold 4.12 per cent stake in the range of Rs 515 - Rs 520 per share. The stock trades at a P/E of 15 times estimated FY07E earnings, which looks attractive.
Stock to watch
Aztecsoft has been witnessing increased activity in the past few trading sessions which is reflected in the sudden bounceback in volumes as compared to last week. The stock closed the week with a gain of 19 per cent at Rs 161. Lehman Brothers bought 2.6 lakh shares on the counter. The bullishness is also a fallout of the robust September 2006 quarter performance wherein its total revenue grew 41.5 per cent and net profit surged 27.3 per cent. The company, being a midcap IT play could attract attention as the valuation gap between the large cap and midcap IT companies has widened. | ||||||||||||||||