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Infibeam Incorporation hits a new high of Rs 196, up 17% on the BSE, extending its over 30% rally of the last three trading sessions on the back of heavy volumes. In the last four trading days, the stock outperformed the market by surging 54% from Rs 127 on October 31, 2017, as compared to 1.4% rise in the S&P BSE Sensex. A combined 19.84 million shares have already changed hands on the counter till 12:00 PM; against its two-week average of sub-12 million shares on the BSE and NSE. The company is an e-commerce company focused on developing an integrated and synergistic e-commerce business model.
The company owns and operates the Infibeam BuildaBazaar (BaB) e-commerce marketplace which provides cloud based modular and customizable digital solutions and other value added services to enable merchants to set up online storefronts. Last month, on October 19, 2017, Infinium Motors (Gujarat) Private Limited and Infinium Natural Resources Investments Private Limited, the non-promoter group companies, had bought 9,000 equity shares of Infibeam Information through open market, the company said in a regulatory filing. While announcing June quarter (Q1FY18) results Infibeam said it is in strong inroads in securing government contracts and strong international market traction. The brokerage firm Kisan Ratilal Choksey Shares and Securities expect Infibeam to deliver strong set of numbers in September quarter (Q2FY18) on the back of tie-ups with government-led initiatives, established synergy from its recent acquisition, and strong traction for Infibeam Web Service (IWS). “We expect Infibeam to report a revenue of Rs 205 crore in Q2 FY18E, an increase of 10.8% quarter-on-quarter. The company’s acquisition of CC Avenue is expected to be value accretive in terms of delivering value to its existing merchants, and proving end-to-end service under one roof,” the brokerage firm said in Q2FY18 result preview. It has “BUY” recommendation on the stock with a target price of Rs 210.