Zicom Electronic rallies over 30% in two days

In past one month, the stock rallied 60% from Rs 78 after reported a strong 38% yoy jumped in consolidated net profit at Rs 42 crore for the year ended March 2014.

Zicom Electronic Security Systems has soared 11% to Rs 125, extending its previous day’s nearly 20% rally, on back of heavy volumes on the bourses. The stock opened at Rs 117 and hit a new high of Rs 128 on the National Stock Exchange (NSE).
 

At 1040 hours, a combined 1.14 million shares already changed hands against an average sub one million shares that were traded daily in past two weeks on NSE and BSE.

In past one month, the stock has rallied 60% from Rs 78 on May 26, after the company has reported a strong 38% year-on-year jumped in consolidated net profit at Rs 42 crore for the year ended March 2014. EBIDTA or operating margin has improved to 12% against 10% in corresponding previous period.

Zicom Electronic Security Systems, the country’s leading security company, said the improved results are mainly on account of increase in entitlement of economic interest in Dubai-based subsidiary Unisafe Fire Protection Specialists LLC and substantial growth in business of Middle East subsidiaries due to improved economic environment besides improved profit margins.

Chairman Manohar Bidaye, said, “As expected the Middle East business of Zicom is moving to a new scale. With the launch of new infrastructure projects in the Middle East particularly in UAE, Qatar & Saudi Arabia, this trend is likely to continue few more years”.