Fund purchases boost KPIT Cummins

DALAL STREET SPIKES

Mid-cap information technology company KPIT Cummins Infosystems touched a 52-week high in intra-day trades on Wednesday on fund-based buying.

The stock touched a new high of Rs 525, in a volatile trading session, before closing at Rs 516.65, up from its previous close of Rs 490.80. The counter, however, witnessed a thin volume of 10,341 shares on the BSE.

Analysts said strong quarterly performance and a buy-call from a influential domestic broking firm has resulted in sharp spurt in the stock price of late For the six-months ended September 2004, KPIT Cummins' net profit grew by 120 per cent to Rs 13.16 crore on a 122 per cent growth in sales at Rs 122.61 crore.

During the last quarter, the company has added risk management as the new practice area to meet growing security demand due to Sarbanes Oxley and Basel II, the company said during the announcement of the quarterly results recently.