Northgate Technologies gains after tie-up with Hong Kong firm

Northgate Technologies surged 4.25% to Rs 413 at 11:44 IST on BSE after its subsidiary Globe7 entered a strategic partnership with Tencent Holdings for developing a social networking website for China.

The company made this announcement during trading hours today, 12 March 2008.

Meanwhile, BSE Sensex was up 346.11 points or 2.15% to 16,469.26.

On BSE, 570 shares were traded in the counter. The scrip had an average daily volume of 24,532 shares in the past one quarter.

The stock hit a high of Rs 414 and a low of Rs 405 so far during the day. The stock had a 52-week high of Rs 791 on 5 July 2007 and a 52-week low of Rs 360 on 10 March 2008.

The company’s current equity is Rs 34.85 crore. Face value per share is Rs 10.

The current price of Rs 413 discounts Q3 December 2007 annualized EPS of Rs 53.66 by a PE multiple of 7.70.

Globe7 HK is a 100% step down subsidiary of Northgate Technologies. It is a leading Internet media company and owns web 2.0 portals such as Globe7.com, ziddu.com and egglad.com. Ziddu.com and Globe7.com are among world's top 1000 web portals as per alexa.com

Tencent Holdings, a Hong Kong stock exchange listed company with market cap of $11.2 billion and more than $500 million annual turnover.

Northgate Technologies reported a net loss of Rs 5.34 crore in Q3 December 2007 as compared to the net profit of Rs 21.44 in Q2 September 2007. Net sales declined 77.71% to Rs 5.87 crore in Q3 December 2007 over Q2 September 2007.

The company provides information technology enabled services. The group operates in three segments viz. information technology services, telecommunications and online advertising.