4.81% Down
LTP: Rs 280.80 M Cap: Rs 344cr
Acacia Partners has bought about 5 lakh shares of Zenith Infotech, thereby, more than doubling its stake in the company to 9.8 per cent from the earlier 4.09 per cent. With the depreciation of the rupee to the Rs 45.5 levels, IT companies like Zenith lnfotech are expected to offset the slowdown to a certain extent and, therefore, they continue to be viewed as a defensive bet in choppy markets. The company has reported good numbers. Revenues increased 60 per cent to Rs 45.28 crore in the quarter to June 2008 from Rs 28.29 crore in the previous corresponding quarter. Net profit grew 34 per cent to Rs 11.1 crore in the first quarter as against Rs 8.24 crore in the previous corresponding period. At the current market price of Rs 280 ,the stock trades at 9 times its trailing 12 months earnings.
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