Core Projects and Technologies slumps 70% in two trading sessions

Core Projects and Technologies slumped 46% to Rs 74 at 14:03 IST on BSE, tumbling for the third session in a row on market talk that shares pledged by some investors were offloaded after margin calls were unmet.

Meanwhile, the BSE Sensex was up 808.49 points, or 7.68%, to 11329.98.

On BSE, 1.21 crore shares were traded in the counter. The scrip had an average daily volume of 6.33 lakh shares in the past one quarter.

Core Projects had tanked 43.7% to Rs 141 on Friday, 10 October 2008. The stock has corrected 70.38% in two trading sessions from Rs 249.85 on 8 October 2008.

The stock hit a high of Rs 164 and a low of Rs 69.90 so far during the day. The stock had a 52-week high of Rs 464.40 on 28 December 2007 and a 52-week low of Rs 122 on 10 October 2008.

The stock had underperformed the market over the past one month till 10 October 2008, declining 50.17% as compared to the Sensex’s decline of 28.20%. It had also underperformed the market in the past one quarter, falling 25.78% as compared to the Sensex’s decline of 24.40%.

The mid-cap software-solutions provider has an equity capital of Rs 17.25 crore. Face value per share is Rs 2.

The current price of Rs 74 discounts its Q1 June 2008 annualised EPS of Rs 6.42, by a PE multiple of 11.52.

According to a report, some high net worth individuals (HNIs) had borrowed money from a couple of non-banking financial companies (NBFCs) by pledging their shares.

Reports quoted a Core Projects spokesperson as saying that the company was unaware of any margin calls. However, in his opinion, the steep fall in the stock price was perhaps due to liquidation of shares, which rose out of the conversion of foreign currency convertible bond (FCCBs). The company had issued FCCBs worth $80 million in May last year, with a conversion price of Rs 167.

A total of 16.75 lakh shares were converted out of these FCCBs in the past one month, the report added.

Core Projects and Technologies’ net profit fell 4% to Rs 13.32 crore on a 25.70% rise in sales to Rs 64.90 crore in Q1 June 2008 over Q4 March 2008.

Core Projects & Technologies provides information technology products and services. The company provides services including onsite and offsite consulting and knowledge management services, systems integration, global postioning system based vehicle tracking and detection systems, application support for their products, and offshore outsourcing.

Core Projects and Technologies massive Fall

One of the probably many reasons why Core Projects and Technologies fell 58% today. Got any more dope ? Leave a comment


13/10/2008 512199 CORE PROJECT INDIABULLS FINANCIALS SERVICES LTD S 3100000 69.18
13-OCT-2008,COREPROTEC,Core Projects and Technol, IL AND FS FINANCIAL SERVICES LIMITED,SELL,604000,89.96,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,I360 STAFFING AND TRAINING SOLUTION PRIVATE LIMITED,SELL,500000,93.02,-
13-OCT-2008,COREPROTEC,Core Projects and Technol,INDIABULLS FINANCIALS SERVICES LTD,SELL,3176793,69.06,-

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Core Projects and Technologies

Core Projects and Technologies

Core Projects and Technologies

Prabhudas Lilladher has initiated coverage on Core Projects and Technologies Ltd with a ‘buy’ for a target of Rs 290.

Core Projects has witnessed tremendous growth in the last two years. Revenue increased 130 per cent to Rs 199.70 crore in 2006-07 (Apr-Mar) from Rs 86.70 crore in the pervious year. Net profit grew 215 per cent to Rs 33.40 crore from Rs 10.60 crore in 2005-06. The company acquired five companies which contributed 65 per cent to topline and bottom line in 2006-07.

Prabhudas Lilladher expects Core's revenue and earnings to grow at compounded annual growth rate of 87.4 per cent and 60.6 per cent respectively over 2007-08 and 2009-10. The growth will be fuelled by the huge domestic education infrastructure opportunity, Core’s recent tie-up with Centre of Higher Learning of US, inorganic growth and cross selling of products of recently acquired companies.

In a report dated Nov 5, the brokerage gives a multiple of 13 times to its 2009-10 earning per share of Rs 19 from its on-going business, which gives a per share value of Rs 246 to its IT business. On the other hand, the brokerage have given a multiple of 2 times to its NPV from the BOT project, which gives a per share value of Rs 44. The combined per share value comes to Rs 290, leaving an upside potential of 27.8 per cent from the current levels.

Core Projects has entered into a joint venture with IETS subsidiary of IL&FS to provide IT and infrastructure solution in the education space. The JV is expected to set up complete infrastructure for schools. It will also install and implement a comprehensive MIS that can be used by central government, state government, school administrators, teachers and students to monitor the progress and benefits under SSA dispensation.

The company will set up 175 centres during three years, which will fetch it one-time revenue of Rs 2.80 crore per centre. These centres will be set up for IL&FS and IGNOU and will be operated by the JV between Core and IL&FS. The JV will earn annual revenue of $1.3 million from each centre