The Hindu Business Line : Zicom Securities jumps on BPO, multiplex boom

WITH a boom in BPO, malls and multiplexes in the country, the stock price of Zicom Electronic Security Systems (ZESS) has been attracting investors' interest over the last few weeks. The acquisition of shares from the open market by promoters has also strengthened the faith of investors in the stock.

ZESS is engaged in providing electronic security systems both for offices and housing societies. The company also caters to BPOs, multiplexes and shopping malls.

The stock price of the company more than doubled in the last three months. In the last two weeks, it gained around 25 per cent.

In Monday's trading, the stock increased 9.33 per cent at Rs 93.75 on the BSE.

Brokers said the company has been doing well with good second quarter results. ZESS reported a net profit of Rs 1.65 crore for the second quarter compared to Rs 1.01 crore in the corresponding quarter last year - a growth of 63 per cent. Sales increased by 37 per cent from Rs 10.23 crore to Rs 14.06 crore.

Speaking to Business Line, Mr Pramod V. Rao, Managing Director, ZESS, said: "Good results of the company have been due to the overall growth of the electronic security market."

He said internal restructuring undertaken by the company six months ago had also helped the company. According to Mr Rao, there is good awareness among companies and individuals about the importance of security systems.

On the promoters' decision to increase their stake by 3.44 per cent (2,82,100 shares) in the last quarter, Mr Rao said: "We feel the business of security systems is on the growth stage and this has led us to buy shares of the company from the open market."

Analysts said the company was competing with leading multinationals such as Honeywell, Siemens and Tyco and domestic players such as Godrej, CMS and ECIL. This shows that the company provides quality products that are well accepted among the customers.

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