With the stock markets getting wind of their software diversification plans, investors have started loging in to both these counters. The stocks of both these companies are on the roll following the announcement of their software forays.

Kirloskar Investments' stock zoomed from Rs 2 to Rs 9.8 in just four trading sessions. In fact, the counter was wearing a deserted look just before the announcement of its IT foray. The has also provided an exit opportunity to some investors and on Wednesday, the stock fell to Rs 7.95. The counter has been witnessing substantially high volumes following Kirloskar Investments' disclosure of its IT foray in its annual report released in the last week. The company targets several segments like software, hardware manufacture, IT education and other IT services. The company's AGM is scheduled to be held on December 14 in Bangalore. Marketmen expect the counter to witness higher activities in the day's to come.

Some three months back, the scrip had to bear the wrath of the marketmen on reports of a default in its fixed deposits, followed by interventions from the Reserve Bank of India.

For Kirloskar Investments, promoted by Pune-based Kirloskars (major players in the engineering sector), the trouble started when it invested heavily in real estate during the boom of 1994-95. And the company found itself in a piquant situation by blocking the funds in the real estate. Several medium-sized engineering firms -- Kirloskar Investment's major clients in its corporate finance, hire purchase and leasing activities -- were also hit. The Kirloskar group holds around 35 per cent stake in KIFL, Champavat controls 15 per cent and the balance is held by public and financial institutions.

``Now days, if nothing is going right in the business then diversify into IT and it may or may not improve your bottomline but it will do wonders for your scrip price,'' says an analyst with a leading Mumbai-based brokerage house. And Mold-Tek Plastics also seems to believe this. The company's board is meeting on Wednesday to make necessary alterations to the objects of memorandum of association in respect of diversification into IT industries.Mold-Tek Plastics scrip till mid-August was trading below par and on news of its IT foray, the scrip shot through the roof. In 13 trading sessions, the stock gained Rs 14 from Rs 16 to Rs 30. The scrip has been hitting the upper band of filter for past three consecutive trading sessions.

Mold-Tek Plastics, which is engaged in the business of manufacturing moulded plastic containers, saw its profit margins shrinking thanks to a general slowdown in industrial activity and the consequent lower offtake. However, thanks to a revival in the economy, the company's performance has started showing signs of an improvement. The company reported a net profit of Rs 60.04 lakh in the first quarter ended September 30, 1999 as against the full year net profit figure of Rs 63.09 lakh for fiscal 1999. Mold-Tek's operations are divided into three independent divisions - PET division, small PET division and the PAIL division. The company has names like Procter & Gamble and Castrol in its client list.