UTV Software: Robust show

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The stock appreciated 41 per cent last week, hitting an all-time high of Rs 461 during intra-day trades. The stock closed at Rs 435.20 on May 18 against previous week's close of Rs 309.64 on the BSE.

The company has posted robust results for the quarter ended March 2007. The consolidated net profit increased 197 per cent to Rs 19.75 crore in March 2007 quarter against Rs 6.64 crore in the corresponding period last year.

The combined volume of the stock on the BSE and the NSE increased 16-fold with 1.54 crore equity shares changing hands in the current week compared to 9.59 lakh shares in previous week.

The board of directors has decided to transfer its film production business to a wholly owned subsidiary company which will be listed in overseas stock exchanges, through an initial public offering or issue of fresh shares to one or more private investors, not exceeding 25 per cent of the shareholding.

The company is in the process of initiating more than 10 broadcasting channels over the next 18 to 24 months as such new media comprising animation and gaming business will be anchored from the company's subsidiary UTV UK.