The movement thereafter, however, turned extremely wild. The volatility factor has touched its peak in the last five months. During this period, the stock has shown wild movements. The first move brought the stock down from Rs 750 to Rs 247. From this low, the stock jumped to Rs 762 within a span of just two months.

This move too did not last long, and by mid-August, the stock dipped to Rs 357. The fluctuation did not stop there, and the stock touched a peak of Rs 1,225 during the first week of September. The stock is now available at Rs 532. Undoubtedly, the stock is wild by any standard.

The strong fundamentals of the company was a positive news to market. But the reports that revenue figures were inflated had a negative impact on the stock price, which however did not last long. This indicate that speculative elements are very active on the counter.

The company has managed to perform well and has posted good results. For instance, during the first half of 2000-2001, the sales stood at Rs 146.87 crore, showing a growth of 44 per cent from Rs 101.96 crore in the corresponding period of the previous year. At the same time, profit at the net level risen by 64 per cent to Rs 30.95 crore.

A 100 per cent Export Oriented Unit (EOU), Vikas WSP has bagged export order worth Rs 66 crore, and is likely to maintain the revenue growth in the near future. The profit margins are also expected to remain firm as the demand for the company's product is showing a strong growth. The company has also managed to reduce its cost in the recent past.

From the market point of view, with a sharp rise in trading volumes, and high volatility factor, the discounting is unlikely to show major improvement in the near future. At the current price, the stock gets a price multiple of around 10.

From the investors point of view, since the stock has shown extremely wild fluctuations, fresh position is not recommended.

For those who already hold a position, the short-term stop loss is Rs 480. The next reference point for an exit is Rs 350. On the upper side, strong hurdle for the stock is at Rs 700.