Mold-Tek Technologies hits record high; zooms over 30% in one week

Post Q2 results, since October 26, 2015 the stock zoomed 98% from Rs 282 to Rs 557 against 10% drop in Sensex.

Shares of Mold-Tek Technologies has locked in upper circuit of 10% at Rs 557, also its record high on the BSE, after the company said its board will meet on February 4 to fix record date for stock split.

In past one week, the stock outperformed the market by surging 32% from Rs 421 as compared to 1.9% rise in the S&P BSE Sensex. Till 11:16 a.m. around 11,000 shares changed hands and there were pending buy orders for 22,628 shares on the BSE.

On January 4, the board had approved sub-divide the existing equity share of the company having a face value of Rs 10 each fully paid up, into 5 equity shares of Rs 2 each to improve liquidity in the stock market.

The company engaged in BPO/KPO business said that it has registered substantial growth in the last couple of years, which has generated considerable interest in the company’s shares in stock market, resulting in constant increase in the market price of the shares of the company.

In order to improve liquidity of the company’s shares in the stock market, to facilitate easy accessibility and to make it affordable to the small investors, the board of directors of the company considered it expedient to recommend the sub-division, it added.

The board also to consider the un-audited financial results of the company for the quarter/nine months ended December 31, 2015 in said meeting.

The company had posted 38% year on year (YoY) growth in its consolidated net profit at Rs 2.02 crore on back of 25% YoY jump in operational income for the second quarter ended September 2015 (Q2).

While announcing Q2 results on October 26, 2015, the company said its IT division added three more clients during the quarter and started executing pilot projects. Increasing demand in IT division is expected to lead faster growth in company’s performance.

The IT division also entered into conventional web technologies and gaining ground in mobile applications space also, it added.

Since then, the stock zoomed 98% from Rs 282 on October 26 against 10% drop in the benchmark index.