Hyderabad-based Fourth Generation Information Systems Ltd (FGIS), a second-rung software company, is witnessing huge volumes. The price of the scrip, too, surged in the last few sessions.
The share appreciated more than 24.88 per cent in the last four days to Rs 27.10 and the average daily volumes touched close to two lakh shares. However, today the stock closed lower at Rs 25.60.
"The reason for institutional interest can be linked to the fact that many mutual funds are picking up good second-line stocks," a dealer at a foreign brokerage said.
FGIS was listed on the Bombay Stock Exchange on January 12 and had attracted low volumes of less than 35,000 in the initial months.
The firm is only two years old and has a presence in the healthcare and customer relationship services sector. This, analysts say, is likely to help it tide over any macro-economic slowdown in the biggest market for its products and services, the US.
"The company's healthcare product suite Smart Doctor, among other suite of products, is already being marketed in the US. The product saves cost of the healthcare providers by simplifying the back-office and the front-office operations," Raghu Vasu, managing director of the company, said.
FGIS has projected net profit for the years 2000-01, 2001-02 and 2002-03 at Rs 2.21 crore, Rs 3.95 crore and Rs 5.93 crore, respectively, on a paid-up equity capital of Rs 12.47 crore.
The reserves and surplus for the periods are projected at Rs 2.53 crore, Rs 2.20 crore and Rs 3.51 crore, respectively. The net worth is projected at Rs 15.01 crore, Rs 15.16 crore and Rs 16.42 crore, respectively.
