You are here: Home » Companies » News
Business Standard

Matterhorn buys 9.3% in Geometric

BS Reporter  |  Mumbai 

Matterhorn Ventures, an FII, yesterday bought a 9.3 per cent stake in Mumbai-based IT firm Geometric for around Rs 25 crore "" 57.75 lakh shares at Rs 43.50 per share.

The shares were sold by FID Fund Mauritius. The block deal saw the company's share price going up by 14 per cent to close at Rs 52.60.

The company operates in the space of engineering and PLM services. Since January 2007 the company has been under a restructuring mode. The first step was the appointment of Ravi Gopinath as the CEO and managing director.

Analysts tracking the company said Geometric has not been able to remain consistent in its performance. For the last few quarters, the company has reported a dip in its net profits.

"Geometric has been a high-risk stock. While the company is in a niche space it has been inconsistent in performance. Restructuring is one of the reasons. However, this has also impacted the company's valuations which are in single digits," says a research analyst tracking the company,

"Their problem started when one of the acquisitions they did in 2006 did not auger well and saw the company's performance going down," said another analyst.

On a year-on-year basis the company's net profit was down 55 per cent and sequentially it dipped by 30 per cent.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, June 29 2008. 00:00 IST