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Promoters' buying props up Zicom Electronic

Our Bureau

Mumbai , Sept. 17

THE Zicom Electronic Security Systems promoters have increased their stake in the company by over two per cent through the open market transactions.

In a notice to the BSE today, the promoters - Mr Manohar Bidaye and Mr Pramod Rao - said that they have acquired 1.82 lakh equity shares (that is 2.22 per cent of the paid-up equity capital) company through creeping acquisition. The promoters purchased these shares this week.

Due to active buying by the promoters the stock price of the company has gained 50 per cent in the last one week from Rs 39 to today's closing price of Rs 59.40.

However, the stock price of the company closed 3.26 per cent lower at Rs 59.40 today after the company informed the stock exchange about shares acquisition during market hours.

Brokers said other than the creeping acquisition, the rise in the stock price is due to the huge growth potential for the electronics security systems.

Speaking to Business Line Mr Pramodh Rao, Managing Director, said Zicom is the only Indian company that is 100 per cent into the electronic security systems. He said the market for electronic security products and solutions is estimated to be Rs 370 crore and is expected to grow at over 30 per cent per annum. "The market is estimated to touch approximately Rs 1,000 crore by 2007," he said.

In July 2004, the company launched the first hi-tech electronic security service in the country called `Z - Security'. This service is targeted at individual and small retailers. `Z- Security' provides customers highly sophisticated superior electronic security equipments on a monthly service charge basis. Various services can be chosen from an array of packages starting from Rs 777.

Mr Rao said in the current fiscal, the top line of the company is expected to grow at 30 per cent and bottomline by around 18-20 per cent.

In 2003-04, the company reported net profit of Rs 3.87 crore on sales of Rs 41.2 crore. Its EPS was Rs 4.74. In the first quarter of current fiscal, it reported net profit of Rs 81.2 lakh on sale of Rs 10.2 crore resulting in EPS of Re 1 (quarterly).

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