3i Infotech hardens on Chinese JV
3i Infotech surged 5.13% to Rs 124 at 12:07 IST on BSE, after the company said it has signed a non-binding memorandum of understanding with Yucheng Technologies, China to set up a 51:49 joint venture.
The company made this announcement during market hours today, 19 February 2008.
Meanwhile, BSE Sensex was up 212.29 points or 1.18% to 18,260.34, tracking firm Asian markets.
On BSE, 42,924 shares were traded in the counter. The scrip had an average daily volume of 2.02 lakh shares in the past one quarter.
The stock hit a high of Rs 124.45 and a low of Rs 119 so far during the day. The stock had a 52-week high of Rs 164.50 on 17 May 2007 and a 52-week low of Rs 85 on 22 January 2008.
The mid-cap scrip had underperformed the market over the past one month till 18 February 2008, declining 10.34% compared to the Sensex's decline of 5.08%. It had also underperformed the market in the past one quarter, declining 11.75% compared to Sensex's decline of 6.39%.
The company's current equity is Rs 130.41 crore. Face value per share is Rs 10.
The current price of Rs 124 discounts its Q3 December 2007 annualized EPS of Rs 6.04, by a PE multiple of 20.53.
Vucheng Technologies headquartered in Beijing, China, is a Nasdaq listed company with more than 1,700 employees. Yucheng provides a comprehensive suite of information technology (IT) solutions and services to Chinese banks.
In December 2007, 3i Infotech acquired a majority stake in Linear Financial & Management Systems, a Delhi based business process outsourcing company.
On 20 November 2007, the company launched its first international data centre (IDC), which will offer managed hosting services for application and disaster recovery solutions.
In October 2007, the company acquired US-based J&B Software and its subsidiaries for $25.25 million (around Rs 100 crore).
3i Infotech's net profit declined 15.12% to Rs 19.7 crore on 14.77% fall in net sales to Rs 102.84 crore in Q3 December 2007 over Q2 September 2007.
The company provides IT solutions.