Core Projects & Technologies strikes back

Core Projects & Technologies surged 9.44% to Rs 68.40 at 14:25 IST on BSE, extending gains for the fourth session in a row.
The stock hit a high of Rs 73.20 and a low of Rs 64.30 so far during the day. The stock had a 52-week high of Rs 464.40 on 28 December 2007 and a 52-week low of Rs 34.10 on 27 October 2008.
From a recent low of Rs 40.25 on 27 October 2008, the stock advanced 55.27% in three sessions to Rs 62.50 on 31 October 2008.
The small-cap software-solutions provider has an equity capital of Rs 17.25 crore. Face value per share is Rs 2.
The current price of Rs 68.40 discounts its Q2 September 2008 annualised EPS of Rs 7.77, by a PE multiple of 8.80.
From a recent low of Rs 40.25 on 27 October 2008, the stock has risen 69.93%, in the past four trading sessions
Earlier, the Core Projects stock tumbled 76.12% in just two trading sessions to Rs 59.65 on 13 October 2008 from Rs 249.85 on 8 October 2008 on market talk that shares pledged by some investors were offloaded after margin calls were unmet. On 13 October 2008, Indiabulls Financials Services had sold 31 lakh shares of Core Projects and Technologies at Rs 69.18 through a bulk deals on BSE. It also sold 31.76 lakh shares of the company at Rs 69.08 per share through a bulk deal on NSE on 13 October 2008.
Reports at that time quoted a Core Projects spokesperson as saying that the company was unaware of any margin calls. However, in his opinion, the steep fall in the stock price was perhaps due to liquidation of shares, which rose out of the conversion of foreign currency convertible bond (FCCBs). The company had issued FCCBs worth $80 million in May last year, with a conversion price of Rs 167. A total of 16.75 lakh shares were converted out of these FCCBs in the past one month, the report added.
Core Projects & Technologies’ net profit rose 25.75% to Rs 16.75 crore on a 36.99% rise in sales to Rs 88.91 crore in Q2 September 2008 over Q1 June 2008.
Core Projects & Technologies provides information technology products and services. The company provides services including onsite and offsite consulting and knowledge management services, systems integration, global postioning system based vehicle tracking and detection systems, application support for their products, and offshore outsourcing.