Reliable Capital snaps up Aztec Soft

STREET SIGNS

It took Infosys to halt a four-day slide at the bourses. With the IT bluechip's quarterly numbers proving better than expected, the markets heaved a sigh of relief. Infy also revised its FY06 revenue and earnings guidance upwards.

PSU banks had a good day after Monetary Monastery allowed banks to treat their investment fluctuation reserve (IFR) as tier - 1 capital. Key Asian markets also closed higher, lifting domestic sentiments.

The silly season

The fun starts once the result season gets underway. Funds make a beeline for stock which they believe will do well and also doesn't hesitate to pull the plug if they are not too convinced about the earnings growth.

With Aztec Software among the first companies to reveal their quarterly numbers, there was plenty of activity at the counter a day before.

Reliable Capital was a buyer at the counter, bagging more than two lakh shares at Rs 163 levels. Lo and Behold. Aztec more than doubled its quarterly profits to Rs 9 crore, from Rs 3.8 crore in the year-ago period.

Revenues also doubled from Rs 20.31 crore to Rs 48 crore in the second quarter. The company also added 15 clients in the past quarter, taking the total number of clients up to 67. The shares went up almost 10 per cent to close at Rs 159 levels.

U - Turn

Those who thought the story at the Amtek Auto counter is over better think again.

The stock had seen a solid surge starting July and had reached Rs 312 levels in late September, before it ran out of steam.

The rise in stock price followed a company announcement that it has acquired a 70 per cent equity holding in a

German firm, Zelter GmbH through its wholly owned subsidiary. The company had also entered into agreements with the sellers for buying the balance 30 per cent equity over the next 3 years.

Since falling to Rs 269 levels by the end of September, the stock has bounced back again. Thanks to buyers like Big Hammer Fund.

The fund recently bought close to eight lakh shares at the counter at Rs 294 levels.

Analysts note that robust growth in the domestic auto industry and a growing trend of outsourcing by global OEMs are boosting the prospects of auto component manufacturers like Amtek Auto.

In other news...

The Mauritius-based Feeder Fund has taken a liking to IL&FS Investsmart. The fund has bought more than 2.5 lakh shares at Rs 243 levels. The scrip has seen a 22 per cent appreciation in the past couple of months.

The fund interest seems to have picked up in the recent past after IL&FS Investsmart announced that it will tap international capital market through a GDR issue for an amount not exceeding $90 million.

Also the company is planning to float subsidiaries to set up offices at Dubai and Singapore to pursue capital market and other related business activities.