Retail investors, who had subscribed to Archies' initialpublic offering in 1996 at a premium of Rs 90, seem to have exited in a hurry once the scrip price went above the IPO price of Rs 100. Clearly, their loss has been the institutions' gain. The Archies' scrip, which was languishing at around Rs 70-80 after listing, began its northward journey in May this year on rumours that the company would be listed on the National Stock Exchange. September saw the scrip crossing the Rs 300-mark on the Delhi Stock Exchange for the first time. For the first-half of 1998-99, Archies has greeted its investors with an 83 per cent jump in net profit to Rs 2.4 crore from Rs 1.6 crore. On equity of Rs 3.24 crore, the annualised earnings per share (EPS) works out to Rs 18. The stock enjoys a very high discounting of 21 times. The institutions, led by domestic mutual funds, have been accumulating the stock based on the growth prospects in the cards business and the company's dominant position in the segment. The interim divided of 20 per cent also aided sentiments. The company paid adivided of 35 per cent for the full year 1997-98 and the market believes that the total dividend for fiscal 1998-99 would be much higher.

Archies' second-half is expected to be good. Growth will come from the new franchisees added during the first-half of the current fiscal. Besides, the company's export thrust (it has appointed distributors in USA and Canada) will also drive future earnings. The company exports its products to the UAE, Bangladesh, Nepal, Butan, Sri Lanka, South Africa and the UK.