The Hindu Business Line : Infotrek Syscom up on new initiatives

INFOTREK Syscom, a company into software development, has risen 20 per cent in the last couple of days. On Tuesday, the stock rose 10 per cent to close at Rs 32.30 on the BSE with volumes of 35,318 shares.

Dealers said the interest in the stock is due to the new business of selling refurbished computers undertaken by the company. It buys old computers from developed countries such as the US, the UK and Germany; refurbishes them and sells them in developing countries such as Bangladesh, Sri Lanka and Egypt.

Response to this business has been good and this was seen from the June quarter results.

The talk is that the company is also eyeing countries such as Bhutan, Pakistan and Nepal.

Several market players aware of this development are buying the shares of the company.

Gains on export orders

POLAR Pharma, a condom maker, has been accumulated by a section of the market. Dealers said the interest in the stock is due to export orders the company has bagged. The talk is that the size of the order is around Rs 35 crore. This will increase the topline and bottomline of the company in the current fiscal.

Another factor for the interest in the stock is the financial restructuring that the company is planning to do. Financial institutions and banks have already cleared the proposal. Following the restructuring, the debt of the company will get reduced to Rs 15 crore from Rs 40 crore.

For the remaining debt, the company is planning to reduce it by placing its shares with some investors. The talk is that by the end of this financial year, it will be a zero-debt company.

On Tuesday, the stock rose 3.21 per cent at Rs 40.25 on the BSE with volumes of 46,500 shares.

Volatile due to domestic funds

IF you thought the huge volatility in the stock market on Tuesday was due to FIIs selling, then you may not be right. Dealers said that was due to index selling by domestic institutional investors.

The talk is that domestic institutions were selling Nifty and Sensex in lots of Rs 50-70 crore values. The rise in the market in the morning was due to buying by FIIs.

The talk is that two big individual market players have also turned bearish on the indices (Nifty and Sensex) and selling them in the last two days.

Virendra Verma

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