Pre-Budget Info 2008

Have A Close Eye :
29-02-2008 is the Final Show of the Movie..i.e. Central Government's Budget.....
World's biggest democracy India's budget is going to be announced on 29th Feb.'08 from the bags of Shri P.Chidambaram, finance Minister. Common people of India, Media, Industrialists of India & abroad, FII's,Inst.Investors, Mutual Funds, HNIs, all are looking towards eyes of Shri P.Chidambaram. Whole World's Big Financial Heads are keenly waiting for 29-02-2008,cause
U.S. and Euoripean Economies are struggling against fear of economy and industrial slowdown, Where as Emerging Markets like India, China,Brazil, Russia are doing good since last 4-5 Years.
Lawyer from Chennai, Shri P.Chidambaram had given the budget for the financial year 1997-98 & since last 3-4 years. All were super-duper budgets for all common people, Industrialists, Economy,Development & also for the Stock-Market. This year also, people from all over India & abroad hoping for repetition of history. Even I also believe that Central budget would be as
good as P.Chidambaram's & Dr. Manmohansingh's image .Simultaneously he has to take care of Inflation,Sub-prime effect to Indian Economy, Rising Crude Oil Prices, Slowing Economic as well as Industrial growth,Further push to Agriculture growth so as to achieve agri sectors targets,Volatality of Foreign Markets & its effect on indian economy,market, Tax-payer's Expactations,Liquidity Flow Control,Interest Rates and Keep GDP Growth above 8.5 or 9 in coming years...etc. This time finance minister will get the full support of Prime minister who
himself was a finance minister & was the promoter of the Economic Reforms.Lalooprasad's Rail Budget is going to favourable.It seems that, this Central Budget is also people,Investor,Industry & Market Friendly. But he has to take care of Left parties, Tax plannings,Inflation,Economic
Reforms,PSU Disinvestments,Employment,Fresh investments,support to Indian industries for development & growth in India & abroad. Many Sectors are Waiting for good announcement. Many sectors are struggling against severe competition, so that sectors really needs to boost up and some good relief in taxation. Last few figures of Economic data, Industrial Data was poor but
Tax Collection data is coming out with mind blowing figures... roughly42% up…Record Break tax collection which fullfills Finance Minister's last year budgetary expactations. 29-02-08's budget will be well balanced,likely to focus more on Employment,Rural Development,Agriculture growth,Infrastructure Growth. Coming Budget can be called as " Comman-Man Budget "....
In coming budget following Industries likely to gain on good nnouncement from the FM. Keep a close eye on stocks belonging to these sectors.Undoubtlythis year budget is likely to focus more on common People,Farmers cause of Elelctions are nearby in India & Shri P.Chidambaram has to take care of Smt. Sonia Gandhi's view for forthcoming political events. Here are the few hot scripts sector wise. If these sectors related news is positive then these companies will be in limelight & may be create firework in coming days.

*Sector : Co.'s Will Be benefited if Good
Announcement :*
Oil and Gas :
HPCL,BPCL,IOC,ONGC, Cairn,Gail, Essar Oil
Infrastructure :
IVRCL, Nagarjuna Construction, DLF, Jai Corp,
Telecom :
MTNL, R Com, Bharti Tele, IDEA,Spice Tele, GTL Infra
Aviation :
Jet Air, Air Deccan, Spice Jet
Media & Entertainment :
Cinemax, Zee, NDTV,Dish Tv, Zee news.
Banking :
SBI, ICICI, HDFC, Union Bank, BOI, Dena, Vijaya, Indusind Bank, Fedral
Bank
Agriculture :
KS Oil, Ruchi Soya, Zuari Agro, Excel Crop, Usher Agro, Nutraplus
Products
Pharma :
Surya Pharma, Sandu Pharma, Glenmark,Ranbaxy, Nutraplus Products,
Wanbury
Biotech :
Jupitor Bio, Sharon Bio, Biocon, Mediaman
IT :
TCS, Zensar, Prithvi, Infosys, Tutis Tech, Aftek Info, D-link, Tech
Mahindra, Fin.Techno
FMCG :
Colgate, ITC, Hind.Lever, Nestle
Oil Exploration :
Hind.oil, Selan Exploration
Fertilizers :
RCF, GSFC, GNFC,Nagr.Fert, Godavari, Chambal
Tyres :
TVS Shrichakra, CEAT, MRF, Apollo
Gems & Jewellery :
Rajesh Export, Vaibhav Gems
Finance :
Continental Credit, TFL, Ind.Lease
Mining & Minerals :
Hind.Copper, RNRL, Kachch Mineral, Sesa Goa, Hind.Zinc,GMDC,VBC Ferro
Alloys.
Metals :
Tisco, Jindal Stainless, Kaamdhenu,Ferro Alloy, Hindalco
Retails & Textile :
Arvind, Life Style Fashion, Timex, Santogen Export, Super Spinning,
Suryajyoti
Shipping :
Mundra Port, SCI, GE Shipping, SEAM
Const. Material :
Hyderabad Industries
Chemicals,Paints :
Asahi Songwan, Vikram Thermo
Hotels & Tourism :
Hotel Leela, Indian Hotel, EIH Associated, ITH
Insurance & Housing Finance :
LIC Housing, HDFC, ICICI, GIC, Ind. Lease
Sugar :
Renuka, Riga Sugar, Bajaj Hind.,Uttam Sugar
Cement :
OCL, ACC, India Cement, Birla Corp
Engineering :
Rolta, Hind-Door, Batliboi
Food( Agri Base) :
Britannia, Nestle,GTC,ITC, Nutraplus,ADF Food
Logistics :
Aegis Log., Gati, GDL
Irrigation :
Rungta Irrigation, Jain Irrigation
Elect.Goods :
Salzer Electr.
E-Governance & IT Education :
Prithvi Info,NIIT, Aptech, NIIT Tech
Auto :
Maruti,Telco, Punjab Trac, M&M, VST Tillers
Pumps :
KSB Pump,Roto Pump
Paper :
BILT, AP Paper, Sirpur Paper
Medical Services :
Indraprasth Mediacal, Apollo Hospital, Span Diag.
Leather:
BATA, Mayur Leather, Liberty Shoes
Pesticides :
Excel Crop, Zuari Agro, Bayer Crop
Plastics :
Nilkamal,
Printing & Stationery:
Navneet Publications
Food Processing:
Usher Agro, Agro Dutch Ind., Ravalgaon Sugar, Quality Dairy, Satnam
Overseas, Dawat.
Also Keep Eye on Jayaswal Neco, Hitachi Home, Rohit Ferro, Asian Oil
Field,
Assam Co., Sathwahna Ispat,Pyramid Retail, Ankur Drug, Oswal Chem,
Crest
Animation, Mphasis, DCB, Kabra Extrusion, India Glycol, VIP Ind,Viceroy
Hotels, Max Ind, Voltas, Amar Raja, Garware Off, Sunil Hi-tech, GTL,
BRFL,
Jyoti, Tata Sponge, Shilp gravures, Avental Soft, Gujarat Gas from
respective sectors.
May u all get profits in all scripts u have or u r going to trade.

Hotel Leela Venture

Hem Research is bullish on Hotel Leela Venture and has recommended buy rating on the stock with a target price of Rs 85 in its February 19, 2008 report. “The Hotel Leela entry into Hyderabad and Pune would give fillip to its revenues due to an increase in the growingIT and ITeS industries in these cities. Both the cities in recent past seen huge surge in demand due to the growing number of business travelers thereby increasing the occupancy rates of the rooms. The Hotel Leela with upcoming hotels in Gurgaon, Udaipur, Chennai, Delhi, Pune and Hyderabad will have 2,750 rooms over the next three years from the current 1,086 rooms. Of the six proposed projects, the Gurgaon hotel is expected to be operational first followed by projects in Udaipur, Chennai, Delhi, Hyderabad and Pune. These facilities once becoming operational will generate huge turnover for the Hotel Leela and thereby add to its top line and bottom line."
"The Hotel Leela has emerged as one of the major players in the premium segment, though it is present in western and southern India only but it has identified this lacuna and embarked on an expansion spree to set up a pan-India pres-ence to capitalise on the increasing demand in the country. The stock at the current market price of Rs 52 will trade 11.30 times to its earnings and 2.38 times to its book value and is having lots of upside potential in the medium to long-term. Therefore, we are initiating ‘BUY’ signal on the stock with the target price of Rs 85, which is approximately 63% up from the current market price of Rs 52,"says Hem Research report.

STOCK WATCH 20.03.2008

Ansal housing (205.00) has been the pioneer to introduce the concept of large integrated residential townships in the country and also the first to enter Tier - II & III cities like Ghaziabad, Noida, Allahabad, Lucknow, Ludhiana, Agra, Bhopal, Haridwar etc. Till now company has constructed massive 67.6 million square feet of commercial and residential project across India. Further, it has lined up gigantic 56.10 million sq. ft of development (80% in the residential segment) spread over 22 cities in the next five years. Recently, it has launched residential townships branded as “Ansal Town” across several cities. It will also be developing an I.T. Park in Bangalore apart from venturing into construction of budget hotels and serviced apartments. Currently, company has a rich land bank of 2500 acres with about 50% under its own name while the rest under firm collaborators agreement. Notably, the total value of the projects with the company and under joint ventures is massive 6000 crores. Few weeks back company has made a pref allotment of 17 lac warrants to promoters @ 208 Rs and 29.50 lac warrants @ Rs 225 to others. For FY08 on a standalone basis it may register a topline of Rs 260 cr and bottomline of Rs 58 cr i.e. EPS of Rs 35 on current equity of Rs 16.70 cr. A good bet on real estate story.

Honda Siel Power (230.00) is engaged in manufacturing and marketing of portable generator sets, portable engines, internal combustion engines, pumping sets, water pumps, lawnmowers, spare parts and other related products in India. Being a 67% subsidiary of Honda Motor Co. Japan, company is the undisputed leader in the field of portable generators with its “HONDA” brand commanding more than 70% market share. Infact company boasts of launching India’s first LPG run gensets which is doing extremely well along with its super silent series. However, going forward the major growth for the company is expected to come from its engine and water pump sets division on back of strong industrial growth & increased mechanization in the agriculture/floriculture/horticulture sectors. To consolidate the manufacturing operations company is shifting its Rudrapur (Uttaranchal) plant to its factory at Greater Noida in Uttar Pradesh. Hence for the short term, company is incurring substantial costs along with production loss. But this restructuring will prove benefitial in longer term. So accordingly it may end FY08 with sales of Rs 240 cr and PAT of Rs 20 cr i.e. EPS of Rs 20 on equity of Rs 10 cr. Accumulate only at sharp declines only as scrip may drift down to sub 200 levels.

Belonging to high profile RPG group, Phillips Carbon (200.00) is the pioneer and largest manufacturer of carbon black in the country. Infact it is the undisputed leader with a capacity of 270,000 MTPA, which is almost 47% of the total installed capacity of carbon black in India It has also established a strong goodwill in the global market with more than 25% revenue coming from exports to over 15 countries including China, Japan, Indonesia, Iran, Sri Lanka, Vietnam, Turkey, Philippines, Australia, New Zealand and East African countries. To cash on the buoyant economic condition, company has chalked out massive Rs 350 cr expansion plan to be completed by Dec 2008, post which it will have carbon black capacity of 395,000 MTPA and power generation capacity of 74.50 MW. Importantly, to protect its profit margin company has re-negotiated the pricing formula with the customers, so as to built-in escalation clause. Accordingly it is estimated to clock a turnover of Rs 1050 cr and profit of Rs 85 cr i.e. EPS of Rs 30 on a conservative basis. For FY09 it has the potential to post an EPS of Rs 40. Accumulate at declines.

Blue Bird (48.00) is one of the leading manufacturers of paper based notebook products and office stationery products like executive notepads, diaries, arch-lever files, perforated pads, registers, filler papers and folders. Although notebook forms the core business with more than 80% revenue, company has also ventured into publishing academic textbooks and self study books for children apart from general publications in subjects such as ayurveda and biographies. It also offers commercial printing under which it designs and prints annual reports, brochures, catalogues, offer documents, coffee table books, calendars, greeting cards, magazines, text books, publications etc. In order to cater the central and south India market efficiently, company has recently put up two new plants at Indore and Bangalore apart from having its main plant in Pune. It is also expanding its distribution network and has ambitious growth plans for publication division. Sarcastically, company is having very high interest cost else it’s trading extremely cheap at an EV / EBIDTA of hardly 4x times. For the current fiscal it is expected to report total revenue of Rs 485 cr and NP of Rs 28 cr i.e. EPS of Rs 8 on equity of 35 Rs. Considering its IPO at Rs 105 in Nov 2006 and 52 week H/L as Rs 94 / 44, it’s a screaming buy at current market cap of merely Rs 170 cr.

International Combustion India Ltd.

International Combustion India Ltd.

BSE Code : 505737 NSE code : Not listed
Market Cap : Rs 110 cr Industry : Engineering
TTM EPS : Rs 46 P/E Ratio : 10.2x
Pmt Stake : 53 % Dividend : 50 %
52W H/L : Rs 914/235 Book Value : Rs 153
Established in 1936, International Combustion India Ltd (ICIL) is recognized to be a leading manufacturer of sophisticated plant and machinery for core sector industries such as mining, steel, cement, petrochemical, construction, sugar, power, textile, paper, rubber, pharma, chemicals etc. From a modest beginning as a trading house, ICIL today boasts of manufacturing specialized range of engineering products under technical collaboration and license agreement from various global leaders. According to its product profile, company has broadly
segmented its revenue model into following two divisions:-
I. Heavy Engineering Division :
This is the main division as nearly 80% of total revenue comes from it whereas it contributes more than 95% of earnings. This division has been further divided into following three categories:-
a. Vibrating equipments: ICIL manufactures and markets a wide range of mechanical and electro-magnetic vibrating screens, feeders, sizers, & onveyors which can handle all types of bulk solids, whether large lumps or very fine grains, wet or dry, or whether abrasive such as scrap, flux and sinter.
As accessories it also makes exciters, DC brake unit & monitoring system for vibrating machines.
b. Bulk Material Handling: Under this category, ICIL deals in spiralling belt elevators, scooping belt conveyers, girdle pocket elevators, apron feeder, mining haulages etc. as an intelligent solutions to suit even difficult to handle materials.
c. Grinding, Classfication and Drying system: ICIL offers complete grinding mill systems designed to pulverise and classify various kinds of material, including non-metallic minerals, fertilisers, chemicals and many other manufactured products. Importantly, it markets ‘Raymond" American brand roller mill, pulverisers, grinding mills, mechanical air separators and flash drying system, which can reduce many products by 95~98% or refine them below 10 microns

II. Gear Motors & Gear Box Division
Under license from Danfoss Bauer, Germany, ICIL offers a comprehensive range of geared motors, gear boxes and electric motors manufactured on specially designed inter-linked CNC production lines. It also exports these products to neighboring markets including Iran and Sri Lanka. Besides company has also been chosen as the outsourcing partner by Danfoss Bauer and has even started exporting cast iron machine parts to them.
Currently, ICIL is having three fully equipped manufacturing facilities spread across Calcutta, Nagpur and Aurangabad. To have a cutting edge technology for manufacturing premium quality equipment, ICIL has made several tie-ups with international majors like Danfoss Bauer(Germany), Mogensen(Germany), IMS Engineering(South Africa), Alstom Power(USA), Gummi Kuper (Germany) and Tredomen Eng (UK) for each product group. Offlate, it has also entered into a license agreement with Ecutec(Spain) to manufacture microfine classifiers. Ironically, all the players in user industries are ramping up their capacities translates into a huge opportunity for company's products. To meet the increasing demand, an expansion programme has been initiated by the company for augmenting the manufacturing capacity of the gear box/geared motor division. It is also upgrading the manufacturing capacity of the Heavy Engineering Division. On the back of its wide product range and high engineering skill, ICIL is contemplating to enter the lucrative turnkey project segment in foreseeable future.
Fundamentally, ICIL is on a strong footing with expected reserves of around Rs 45 cr i.e. book value of nearly Rs 200 by end of this fiscal. Besides being a debt free company it has an impressive ROCE of 40% and ROE of 25%. Financially, ICIL has recorded 20% growth in sales to Rs 66 cr and 50% increase in PAT to 8.25 cr for nine months ending Dec’07. Accordingly for this fiscal it is expected to clock a turnover of Rs 95 cr and profit of Rs 11.50 i.e. EPS of Rs 48 on a tiny equity of Rs 2.40 cr. Hence with expected CEPS of more than Rs 60, and EV/EBIDTA of less than 6x, company is available fairly cheap at current market of merely Rs 110 cr. For FY09, company has the potential to register an EPS of around Rs 60. So investors are strongly recommended to buy at current levels as at a reasonable discounting by 14x times against FY09 earning, scrip can touch Rs 850 (i.e. 80% appreciation) in 12~15 months. Moreover scrip is a strong bonus candidate as well.

Small & Beautiful 20.02.2008

GM Breweries (88.00) is the single largest manufacturer of country liquor in the state of Maharashtra and enjoys virtual monopoly in the districts of Mumbai, Navi Mumbai and Thane. This is proved from the fact that Maharashtra govt is getting one fifth of the total excise duty on country liquor from GM Breweries alone. For the latest Dec qtr, company’s sales improved by only 10% to Rs 49 cr but NP shot up 85% to Rs 4.40 cr on back of lower raw material cost and better operating efficiency. It recorded a healthy OPM of 14% against 10% last year. With the installation of additional bottling lines last fiscal, company now has the capacity to process 8.26 crores bulk litres of country liquor per annum. Hence it is expected to end FY08 with sales of Rs 190 cr and NP of Rs 15.50 cr i.e. EPS of Rs 17 on equity of Rs 9.40 cr. Having a gross block of Rs 68 cr, low debt equity ratio, strong cash flow, decent margins etc, company is available extremely cheap at an Enterprise Value of less than Rs 100 cr. With 68% holding, promoters are investor friendly and have an uninterrupted record of dividend payment from the day of listing. Company definitely deserves much better discounting and at a modest PE multiple of 12x times, scrip has the potential to cross Rs 200 mark in medium term.

Bhagyanagar India (51.00) the flagship company of Surana Group is touted as an emerging real estate story by the marketmen. Including its subsidiaries, company boasts of having around 175 acre of land bank valued at more than Rs 600 cr presently. It includes 25 acres of prime land in Gachibowli area Hyderabad, 50 acres in SEZ, Chennai, 25 acres near new Hyderabad airport etc. To take the maximum benefit of the ongoing boom in real estate, company has aggressively forayed into real estate development and construction industry through its various subsidiaries and is, focusing mainly on housing and construction of IT Parks, SEZ etc. Recently, it has formed a SPV along with IL&FS Infrastructure for undertaking, various infrastructure and entertainment projects such as theme parks, special economic zone, industrial parks etc on a large scale basis. On the other hand, it has successfully commissioned the wind power project with an installed capacity of 9 MW in Karnataka last fiscal. At the same time its traditional copper & telecom products business is doing okay. Notably, couple of weeks back company has formed a joint venture with group company for setting up of solar photo voltaic cell and module project and has even been allotted 25 acres of land in the Fab City, Hyderabad. Although promoters don’t enjoy a good reputation in the market, still it’s a good trading bet.

Sarcastically, the share price of Rama Paper (23.00) which hit a high of Rs 59 in 2005 has been beaten down mercilessly to unbelievable levels, inspite of improvement in fundamentals. Off late, company has increased its paper production capacity to 44000 TPA and is further enhancing it to nearly 60000 TPA in near future. It is putting up an additional line of paper manufacturing machine to produce tissue and poster paper with annual capacity of 16320 TPA under a capex of 24 cr. But most importantly, company has set up 6 MW co-generation power plant for captive consumption which has already commenced operation leading to substantial saving in power and fuel cost. Last fiscal company raised around 16 cr thru equity route by making pref allotment to promoters and others @ 35 Rs. As on today promoters are holding 41% stake. For FY08 it is estimated to clock a turnover of Rs 80 cr and profit of Rs 6 cr on back of higher operating margin. This can shoot up to Rs 100 cr of sales and Rs 8.50 of NP for FY09. With means an EPS of Rs 6 and Rs 9 for FY08 and FY09 respectively on fully diluted equity of 9.70 cr. Buying strongly recommended as share price can shoot up to 35 Rs in short term.

Rohit Ferro Tech Ltd (80.00) is a leading producer of high carbon ferro chrome apart from manufacturing ferro manganese and silico manganese through submerged arc furnace route. During last fiscal only, company has set up a greenfield plant in Jajpur-Orissa thereby taking its total capacity to 165,000 MT from 55,000 MT earlier. Further it has set up fifth furnace with 15000 MT capacity in Bishnupur, which is expected to become operational shortly. To become an integrated player company has applied for mining lease to the state government of Orissa for chrome ore as well as manganese ore. Presently it is sourcing manganese ore from Australia besides local sourcing. On the other hand, due to higher production, better margins, and the better availability of raw-materials company is stressing more on production of ferro manganese in place of high carbon Ferro Chrome For future, it has chalked out a plan to setup a 110 MW captive power plant to being down its power cost. In order to fund this, it recently made a pref allotment of 80 lac convertible warrants @ 43 Rs per share to promoters as well as strategic investors like Kampani Finance, Foster Capital etc. On the back of stunning Q3 nos it may end FY08 with sales of more than Rs 500 cr and PAT of Rs 50 cr i.e. EPS of Rs 14 on current equity of 34.50 cr. Moreover company has the potential to post an EPS of Rs 20 on fully diluted equity of Rs 42.50 cr for FY09. Keep accumulating at declines

Yuken India Ltd (YIL)

Yuken India Ltd (YIL) was set up in 1976 in technical and financial collaboration with Yuken Kogya Co Ltd – Japan mainly for the manufacture of oil hydraulic equipment. Since then it emerged as the leading and reputed manufacturer of power saving hydraulic pumps & valves. Its product range consist of all types of hydraulic pumps like vane pumps, piston pumps, gear pumps, pal pumps etc. Under valves, it boasts of manufacturing various types of hydraulic valves for industrial and mobile applications including pressure control valves, modular valves, flow control valves, logic valves, electro proportional valves, servo valves, direction control valves & mobile control vavles. Besides it also manufactures complete hydraulic power units as per customer specifications, cylinders, parison controllers, actuators, accumulators and power packs. Moreover it also supplies related accessories such as cartridge kits, pipe flanges, air bleed valves, act pressure switch, sub plates, MMC manifolds, modular bolt kits, pump mounting brackets, coolers etc. Hydraulic devices are very popular in heavy engineering industry as effective means of automation, hence company’s product find extensive use in various key sectors like machine tools, material handling equipment, construction machinery, drill rigs, automobiles, defence, steel, power & cement plants, plastic machinery etc.
YIL’s operates thru its main foundry plant at Bangalore and four subsidiary companies spread across Bangalore, Hyderabad & Chennai. Its subsidiary Yuflow Engineering manufactures hydraulic cylinders for industrial use, Sriplas Engineering act as an ancillary unit for machined components, Coretec Engineering manufacture iron cores for solenoid valves and Prism Hydraulics to manufacture solenoid coils. Earlier in 1991, company formed a joint venture to manufacture radial piston motors in collaboration with Sai of Italy, the largest manufacturers of radial piston motors in the world. Presently, in order to fulfill the rising demand YIL is implementing a gradual expansion plan to increase its capacity multifold. Accordingly, it has recently doubled its hydraulic casting products capacity to 2400 TPA and is further augmenting it to 6000 TPA within next 2~3 years by installing additional hi-tech machineries in the existing foundry unit. Recently it made a tie up with Hydrocontrols SPA Italy to produce and market state-of-the-art mobile control valves especially for agriculture, construction, earth moving and lifting machineries. Importantly, YIL has forayed into Chinese steel industry by successfully commissioning hydraulic system for a cold rolling mill line in China for M/s Changshu Everbright. In short, apart from catering to domestic market YIL is looking to increase its foothold in international market as well.
Interestingly, YIL runs a 'Hydraulic School' at different levels for its customers to provides hands-on experience and has already trained more than 6,000 engineers from a large number of organizations, both from India and abroad. Financially, company is doing well and has reported a 20% rise in sales to Rs 39 cr and 70% jump in bottomline to Rs 3.90 cr for nine months ending Dec’07. Considering company’s expansion plan and strong demand for its product, it is estimated to report a topline of Rs 100 cr and bottomline of Rs 5.50 cr for FY08. This translates into EPS of Rs 18 on very tiny equity of Rs 3 cr. For FY09, EPS is estimated to shoot up to around Rs 25. Thus investors are strongly recommended to buy as at a reasonable discounting by 12x times, scrip can easily touch Rs 300 in 9~12 months.

Avantel Softech Ltd - 65.00 Rs

Incorporated in 1990, Avantel Softech Ltd (ASL) is a technology driven, ISO 9001 - 2000 accredited company which offers telecom products and software solutions. It has over the past few years developed expertise in telecom hardware, relevant embedded software and network management systems. In order to provide better solutions in communications and computing, ASL has made strategic alliance with renowned entities like Space Applications Centre, ISRO, L 3 Communications - Narda, USA and Vedang Radio Technology. Thru its govt recognized R&D division, ASL has developed a number of products for defence sector by ensuring compliance of stringent defence standards. Infact, it was the first Indian company to supply HDSL (High speed Digital Subscriber Line) and DSL equipments. Hence company primarily caters to the telecom and defence sector organizations. Broadly, its business model can be divided into following two segments:
A. TELECOM
ASL is actively involved in design and development of products based on high power broadband Wireless, Satellite communication and broadband access technologies. The design, development and integration of wireless and access products are carried out using its own proprietary software tools. Besides, company has a test and measuring facility for design, development and manufacture of wireless products (up to 20 GHz) and various access products supported by compilers and evaluation modules to test and integrate the software and hardware. This segment can be further subdivided into following two divisions:-
Wireless : ASL designs and manufacturers repeaters, filters, splitters, tappers, combiners, couplers & amplifiers to enhance the capacity and coverage of wireless communication networks for use in GSM, CDMA and 3G networks. In short it offers products for indoor and outdoor environment to improve signal quality, coverage and capacity
Satelite Communication: Ironically, ASL’s design and engineering team has developed a range of subsystem for satellite earth stations in collaboration with ISRO. It has developed customized solutions for INSAT based mobile satellite services with advance microwave, digital wireless communication and signal processing products for military and commercial market. Hence it offers mobile satellite services for messaging, tracking and all locations based services with appropriate network security. Using this same technology it provides specialized products like Ship borne terminal, handheld terminal, S-band receiver, UHF transmitter, burst demodulator etc which are one of its kind.
B. SOFTWARE
ASL provides services in the areas of ERP, web enabling of business processes as well as maintenance / enhancement of legacy systems, network management systems, remote monitoring & management, automation of test equipments and corporate portals. Its ERP software produc called “FunWork” covers all core and extended business critical functions of the enterprise such as marketing and sales, finance and accounts, manufacturing operations, customer support, personnel and administration. It also has expertise in electronic design services for product development, re-engineering, PCB design etc. Uner multimedia, ASL offers complete in-house creative and production capabilities-from concept development and script writing to programming, assembly, and testing.
Prsently, ASL is having development centers at Hyderabad, India and Boston, USA. Its client base comprises of telecom service providers like Airtel, BSNL, Ericsson, Vodafone, Idea, L3Communications, Nokia and Siemens and many other government organizations like BEL, Defence Labs, ECIL, Indian Army, Indian Navy, ISRO Centres etc. Notably, ASL could successfully develop transmitters and receivers to offer mobile satellite services for applications in Indian defence as well as other sectors. Secondly, its products for EW and COMINT applications have been well received by defence PSU'S such as BEL and ECIL. Company is also developing network manager to offer wide range of VSAT services with cost effective indigenous technology. It has also signed a Transfer of Technology (TOT) agreement with ISRO for supply of hubs and satellite interactive terminals for EduSat networks. Moreover it is developing various products for GPS based vehicle tracking system. To increase its presence company is in talks with some international players involved in the system integration business for strategic tie-ups and alliance. In future it plans to address requirements of railways, coast guards, fishing trawlers and transport vehicles. To conclude, company has huge potential for future growth. For nine months ending Dec 2007, its sales jumped up 135% to Rs 19 cr whereas Pat zoomed up to Rs 3.40 cr against 0.60 cr last fiscal. Historically, Q4 is the best quarter for the company and hence it may end FY08 with sales of Rs 35 cr and profit of Rs 5 cr. This works out to an EPS of Rs 10 on equity of Rs 5.15 cr. At a current EV of less than Rs 35 cr it’s a good bet and can give 50% return is a year’s time.

STOCK WATCH 16.02.2008

Hind Rectifiers (140.00) is one of the leading manufacturers of locomotive transformers, rectifiers, inverters, and power electronics like diodes and thyristors (types of semiconductor devices) etc which are basically used in converting the current from AC to DC and vice versa. Incidentally, it derives more than 50% of its revenues from railways and 20% from power industry. For Dec qtr, sales improved by 15% to Rs 23 cr and NP grew by 10% to Rs 2.80 cr. Offlate, company has set up two new units in tax free zone of Uttranchal, but in order to get the Cenvat paid on raw material it is still operating from its old plant in Mumbai and Nagpur. However the new orders booked by the company will be manufactured at Uttranchal plant only. Moreover, recently company has signed a technical collaboration agreement with M/s. Infineon Technologies AG, Germany for manufacturing of IGBT based primeSTACK which will complement its existing products. It may end FY08 with sales of Rs 95 cr and PAT of around Rs 11 cr i.e. EPS of Rs 15 on a very tiny equity of Rs 1.50 cr having a face value of Rs 2/- per share. Importantly, company is estimated to report an EPS of more than Rs 20 for FY09 and at a modest discounting by 12x times share price can double in 12~15 months.

Shanti Gears (65.00) is engaged in the manufacture of gears, gearboxes, geared motors and gear assemblies both standard and custom-made. Its product portfolio includes a range of worm gear boxes, helical & bevel gear box, geared motor, custom built gear box, mill gear box, ppen gearing, CNC machine tools and products for the textile industry. It also manufactures high precision gears for marine and aviation industries. It has recorded 25% growth in sales to Rs 176 cr and 30% rise in net profit to Rs 32 cr for nine months ending Dec 2007. Notably, company makes gearboxes of 250 KV for windmills and is looking for technical collaboration to manufacture higher capacity gears for windmills. On the back of strong industrial and economic growth company is sitting on a strong order book of more than Rs 100 cr currently. For FY08 it can clock a turnover of Rs 250 cr and profit of Rs 45 cr which leads to an EPS of Rs 5.25 on fully diluted equity of Rs 8.60 cr with a face value of Rs 1/- per share. Moreover for FY09 it has the potential to register an EPS of Rs 6.50 which means scrip is trading fairly cheap at P/E ratio of 10x times. Besides, compay is having around 18 acres of surplus land in prime location of Coimbatore which can fetch handsome value once sold.

Hitachi Home & Life Solutions (127.00), a 68% subsidiry of Hitachi-Japan is amongst the top airconditioning companies in India with an installed capacity of 250,000 units per year. It maufactures high technological home and commercial air conditioners like window AC, split AC, concealed splits, ductables, chillers and specific telecom cooling solutions. Its plant at Kadi, Gujarat is among the seven Hitachi room air conditioner facilities worldwide. Couple of years back company also introduced 3-Door refrigerators and big capacity washing machines which are basically imported from Hitachi factory in Thailand. Its topline grew by 45% to Rs 83 cr but PAT shot up 240% to Rs 5.40 cr for the latest Dec’07 qtr. Importantly, due to strong brand equity company has managed to retain the high quality position as well as price realisation in spite of stiff competition. Accordingly it is expected to report total revenue of Rs 425 cr and PAT of around Rs 37 cr for FY08. This works out to an EPS of Rs 16 on equity Rs 23 cr. Accumulate at every decline.

L.G.Balakrishnan & Bros (22.00) is enaged into auto transmission & metal forming business thereby manufacturing products like chains for both automotive and industrial segment, sprockets, tensioners and belts on one hand and fine blanking, forging (cold, hot and warm), machined components, wire drawing on the other hand. In order to cater to the requirements of major OEMs customers, last year company has put up a new manufacturing plant in tax free zone of Pantnagar, Uttarakhand. Notably, company meets 100% of transmission requirements of Bajaj Auto and TVS, and nearly 80% of Hero Honda's. For the nine months ending Dec’07 it registered 12% growth in sales to Rs 394 cr but profit grew marginally to Rs 10.80 cr. Offlate, it has also set up a Greenfield forging plant near its existing plant at Annur. Interestingly, it is demerging its forging division into LGB Forge Ltd and will be allotting one share of it for every one share held in the company. For entire FY08 it may clock a turnover of Rs 525 and NP of Rs13.50 cr i.e. EPS of Rs 1.70 on equity of Rs 7.85 cr having face value of Rs 1/- per share. However, the continuos pressure for price reduction by OEMs and severe competition in the after market coupled with volatile input cost are causes of conern. But only at sharp declines.

Small & Beautiful 15.02.2008

Shringar Cinemas (61.00) is an integrated film exhibition and distribution company operating chain of multiplexes under the brand name -'FAME'. It is also in food and beverage business thru one of its wholly owned subsidiary. It has major presence in Mumbai apart from Bangalore, Ahmedabad, Surat, Nasik, Pune Kolkatta & Aurangabad. It currently operates 14 properties with 48 screens. For the nine months ending Dec’07 its revenue increased by 60% to Rs 60 cr whereas NP shot up 70% to Rs 12.80 cr. Because of rising disposable income, increasing mall culture and various tax benefits from govt, the future growth potential for the company is quite huge. It has plans to scale up its multiplexes to 150 screens with pan India presence. For partial funding, last year it raised around Rs 90 cr thru FCCB route to be converted @ Rs 90 & 107 per share. Ironically scrip is still available near its IPO price of Rs 53 per share in April 2005. On a standalone basis for FY08 it may register a topline of Rs 85 cr and bottomline of Rs 17 cr i.e. EPS of Rs 5 on diluted equity of Rs 33.85 cr. Meanwhile company is contemplating to get in to film production as well. Share price can easily appreciate 50% within a year.

Gujarat Alkalies (160.00) is the single largest producer of caustic soda in India, with a production capacity of 358,760 TPA. Besides it also produces various other chemicals like sodium chloride, liquid chlorine, hydrochloric acid, chloroform, methyl chloride, hydrogen peroxide, sodium cyanide, aluminium chloride, phosphoric acid etc. Ironically, company’s plants are working at more than 100% capacity utilization against industry average of 70%. In order to reduce the power cost, company has undertaken a windmill project of 24 MW expected to go on stream in coming few weeks. It is further setting up additional windmills for a capacity of 40 MW. On the other hand, company has already finalized monetization of CERs generated from three of its CDM projects and has infact become the first PSU in the country, to get the approval of the host country from MOEF for its CDM Project. To maintain its future growth it is exploring the possibilities of putting up additional projects like expansion of caustic soda by 500 TPD, expansion of hydrogen peroxide by 75 TPD (100% basis) and another captive power plant with a capacity of 90 MW at a capex of Rs 1,100 crore. For FY08 it may clock a turnover of Rs 1150 cr and PAT of Rs 250 cr on a conservative basis. This translates into EPS of Rs 34 on equity of 73.40 cr. Keep accumulating at declines.
Patels Airtemp (70.00) is involved in the design and manufacture of industrial process plant equipments like pressure vessels, heat exchangers, air cooling & air heating equipment, dehumidification plants, air conditioning and refrigeration equipment and coils etc. Hence company’s products that find use in key sectors like oil and gas, refineries, power, fertilisers, chemicals, cement and textiles. It is also into HVAC business, which currently contributes about 15% to the total revenues. Its clientele include Ingersoll Rand, BHEL, Reliance group, NTPC, Indo Gulf, ONGC, Nirma, Nuclear Power Corporation etc. On the back of strong industrial and economic growth, company is sitting on a healthy order book position of Rs 45 crore. On the export front, company is expecting to get more orders from Germany and Singapore. It is negotiating for a waste management project in Singapore and is hopeful to get the same soon. For FY08 it is estimated to report sales of Rs 50 cr and PAT of Rs 5 cr i.e. EPS of Rs 10 on equity of Rs 5 cr. Share price can easily double in 12~15 months. Buy at every declines.

Rajendra Mechanical Industries (135.00), part of the Mumbai based REMI group, is a pioneer in manufacturing of stainless steel welded and seamless pipes & tubes. These pipes and tubes are used extensively in critical process industries such as refineries, petrochemicals, paper and pulp, fertilizers, pharmaceuticals, nuclear plants, etc. IOCL, IPCL, GNFC, IFFCO, Madras refineries, Mangalore refineries, Ranbaxy Laboratories are few among its reputed clientele. It has also developed specialized stainless steel tubing especially for critical power industry. To cash on increasing demand, company has been constantly expanding its production capacity which now stands at 7500 MTPA from 4500 MTPA in 2005. Notably, company has also ventured into power generation thru wind mill and has total installed capacity of 2.25 MW. For the Dec qtr, sales jumped up 55% to Rs 43 cr whereas NP zoomed up 290% to Rs 2.60 cr. Accordingly it can report a NP of Rs 10.00 cr (incl. extra ordinary income of Rs 1.50 cr on sale of property) on sales of Rs 185 cr for FY08 which leads to an EPS of Rs 21 on equity of Rs 4.80 cr. Besides it has the potential to earn an EPS of 25 Rs for FY09 from business operations only.

Five Golden Rules For Traders

Date: 14.02.2008 1. Invest in the direction of the Trend! The fastest and most risk free way to make money in the markets is to identify a change of trend in the market as early as possible, take your position, ride the trend and close your position shortly after the trend reverses.Any market professional will tell you that it is impossible to buy at the lows and sell at the highs (or sell at the highs and buy at the lows) consistently, but with the Fortunate Group's Research and Analysis, it is very possible to catch 60 to 80% of much intermediate term and long term market movements.

2. Cut Losses Quickly.In order to keep investing, you must preserve your capital. It is therefore important to keep the individual losses small in relation to the overall size of your investment.Fortunate Group will ensure that you will never loose more than 1.0% of your investing capital in any single trade. This means that even if you make five incorrect investment decisions, you will still have 95% of your capital to continue investing.Alternatively the Fortunate Group's trailing stop loss mechanism helps you to capture 70% to 90% of most trends. Our "Trailing Stop Loss" tracks the trend direction, liquidity, volatility and momentum and automatically adjusts itself to stay with profitable trends as long as possible to make your profits even larger.

3. Let Profits Grow…Fortunate Group stays with profitable trends as long as possible because the trend is likely to continue and make your profits even larger.Fortunate Group's Research and Analysis includes what is called a trailing stop. This is a method of moving an exit point along some distance behind your trade.The "Stop Loss" mentioned in " Fortunate Group's Research and Analysis " will let profits run while still guarding against the possibility that prices will turn around and take away much of your accumulated profits before the trend actually reverses. It is called a "trailing stop loss". This "Stop Loss" level is always some distance behind your trade. As long as the trend keeps moving in your favor, you stay in the trade. If the market reverses direction by the amount of the "Stop Loss', you exit the trade at that point.Thus the " Fortunate Group's Research and Analysis " "Stop Loss" will always protect your profits by insuring that you keep 80% to 90% of the accumulated profit.

4. Diversify.Fortunate Group's Research and Analysis includes diversification for spreading risk and or increasing the odds of good fortune.Spreading your risk between different securities across different sectors reduces your odds of losing your entire capital on a single stock or industry sector.Diversifying across different sectors is important because when the economy is digging itself out of recession, certain sectors whose profits are particularly enhanced by falling interest rates put in their best price performance. Then as the economy moves into the terminal recovery phase, the outperforming issues start to decline, but the market averages are buoyed by previous underperforming issues, which thrive in this kind of environment.

5. Manage Risk.Fortunate Group provides Risk Management Strategy covers the most important element of managing risk by keeping your losses as small 1% of your trading capital.Our Risk management Strategy ensures that you as an investor can continue to invest in the markets even after a couple of incorrect decisions. In fact if you follow our "risk management strategy" along with the Fortunate Group's Research and Analysis you can continue investing in the markets for as long as you live. You will never ever have to worry about losing your entire trading capital.

Amar Remedies Ltd (ARL)

Date: 13.02.2008 Established in 1984, Amar Remedies Ltd (ARL) was originally promoted by Mr. P. Shah as "Swami Aushadhalaya Private Limited” to develop ayurvedic medicines. In the year 1988, it made its first breakthrough in oral care products with the development of an ayurvedic toothpowder. Two years later it developed and launched an effective ayurvedic vegetarian toothpaste (i.e. gelatine-free formula), which is the only toothpaste of its kind. Subsequently, it research and developed several different ayurvedic medicines and even got it approved from FDA. In 2001, ARL developed and commercially launched two healthcare products namely AMAR Get-Up - a pain relieving ointment and AMAR Balm for cold, headache & body ache. Since then ARL has established itself as one of the well known manufacturer of ayurvedic, herbal and cosmetic dental care, personal care, skin care, beauty care & health care products like tooth paste, toothpowder, shampoo, creams, lotions, shaving gel, balm & pain relieving ointment. Infact, it boasts of making twenty different variants of toothpaste under 12 brands for sale to intermediate traders for export and nine variants of toothpaste under 3 brands for the domestic market. But importantly till now, ARL has successfully developed 24 different ayurvedic and herbal medicines and have also obtained the FDA approval for the manufacture and sale of these medicines, which include medicines for hypertension, diabetes, and heart ailments.
ARL has two manufacturing facilities located at Surat & Daman. The Surat plant basically manufactures ayurvedic and herbal medicines whereas the sophisticated Daman plant manufactures tooth paste and other FMCG products. Last fiscal, company expanded the installed capacity of oral care and health care from 12400 MT and 595 MT to 13400 MT and 645 MT respectively at its Daman plant. As a part of its expansion plan, company has recently set up a new state of the art manufacturing plant spread over 1 Lac sq. feet of constructed area at Dehradun in Ultaranchal. It has installed ultra modern machinery, to manufacture FMCG & ayurvedic products. It has also set up a complete integrated R&D and quality control department to ensure enhancement of quality of existing products & development of new products. But it is unable to commence commercial production due to delay in obtaining permission from pollution control authorities. However it will get the clearance certificate sooner than later and the plant is expected to start in next couple of months. Once fully operational it will give a good fillip to company’s topline as well as bottomline. Notably, ARL has appointed 13 super-stockists for domestic sales who in turn have more than 700 sub-stockists spread in western, northern, and eastern regions of India. Besides, it has recently selected 2 super-stockists who in turn have 130 sub-stockists in the southern region and are yet to contribute to turnover. Meanwhile, after capturing a major share of the Indian domestic market, ARL has started tapping the international potential of FMCG markets. It is currently exporting to over various countries across the globe from Europe through Middle East & from Asia to Far East countries. Accordingly it is contemplating to form a wholly owned subsidiary at Ras-AL-Khaimah-Free Trade Zone, UAE.
To protect the intellectual property, ARL has offlate applied for trade mark registration for 9 toothpaste brands. And it intends to apply for process patent of all 24 ayurvedic medicines after commencement of their commercial production. For future growth, ARL’s focus is to change the perception of consumers towards ayurveda from an age-old science to a remedy for various new age ailments and diseases by changing the delivery system of the medicine. It also propose to start a unique concept of consultation over toll free phone lines for ayurvedic treatment thru sales and service offices in select cities of India. Financially, for FY08 ending June 2008company is expected to register sales of Rs 300 cr and PAT of Rs 20 cr i.e. EPS of Rs 8 on equity of Rs 26.20 cr. And for FY09, it has the potential to post an EPs of 10~11 Rs. Considering its all time H/L of Rs 102/26 and commencement on Dehradun plant in near future, this is one of the cheapest scrip trading at a P/E multiple of hardly 3x times against FY09 earnings. Investors are strongly recommended to buy at current levels as it can easily appreciate 50% in 9~12 months

Simplex Castings Ltd (SCL)

Date: 13.02.2008 Incorporated in 1980, Simplex Castings Ltd (SCL) belongs to well diversified Simplex group of Industries which has interests in Simplex Forging (in forging business), Simplex Engineering (Blast Furnace, Coke Oven projects etc), Signum Fire Pvt ltd (in preparing fire proof doors made of steel and timbers) etc. However, SCL is engaged in manufacturing of heavy engineering castings in various grades for industries like steel, rail, mining, cement, power and other engineering sectors. It produces various castings such as grey cast iron castings, S.G iron castings, stainless steel castings, steel castings, ingots, valve castings etc. It can make castings from 350 kg to 32000 kgs weight in single piece. It specializes in developing different casting for steel plants and also valve / cone castings for supplying the same to valve and pump manufacturers. Incidentally, company has been supplying casnub bogies, coco bogies & bolsters assemblies (used in railway wagons) to Indian railways for a long time. Apart from Indian Railways, all major steel companies including Tata Steel, Jindals, Sail, Essar, Bhushan etc are its clients. Besides, company also derives 15~20% of revenue by exporting its products to countries like Spain, France, Belgium, Egypt, Korea etc
SCL has two manufacturing plants, one in Bhillai and other in Raipur, both are present in iron ore rich state of Chattisgarh. The main raw material for company is steel, scrap, iron ore & sponge iron which are all available near to its location. Notably, it manufactures all types of castings at its plants, which have installed capacity of 15000 tons each. However the actual production depends upon the product mix and the size of the orders. Ironically, SCL can operate its plant at even 125 times of its installed capacity. To derisk its business model company is moving up the value chain and is venturing in to the machined castings. For that, it has imported machineries from Spain worth Rs 8 crore. This will improve the margins going forward and will also lead to addition of new clients which seek the machined components. Interestingly, due to volatility in input cost and to safe guard its profit margin, management has worked out a backward strategy of raw material pricing while coating a tender. This has of course restricted volume growth, but has given the company the margin of safety on execution of the orders. Meanwhile, it has bagged a prestigious order worth Rs 12 cr from Indian railways for supply of coco bogies and expects to get more such order in future. Currently it has a very healthy order book position of Rs 120 cr which includes export orders worth Rs 30 cr from its valued clients like Indu steel-France, Arcellor-Spain, Ingersoll Rand-Italy, Sandwik Asia-Pune, Al-Nasar-Egypt, Hyundai Corporation-Korea.
On the other hand, as it already manufactures valve casting, in near future it intends to forward integrate into valve manufacturing business, which is a very high margin business. Especially for this it has planned a capex of Rs 60~70 cr to be funded from debt and internal accruals. It also plans to venture into project execution and turnkey business of steel plants. So far it’s into manufacturing of huge castings, which are used to build and lay blast furnaces, coke oven plants, slag plots etc. But now it has started laying down and construction of such plants. It has already entered into collaboration with BHEL and one Chinese company and has even executed one such contract of Rs 2.5 crore of Bhillai Engineering Company and is undergoing another such contract with it. Simultaneously, it has bid for Indian Iron and Steel Company’s four such contracts, which is of Rs 80 crore each in size.
Fundamentally as well as financially company is doing quite well. For the nine months ending Dec’07, it recorded 10% growth in sales to Rs 106 cr but NP increased by 55% to Rs 5.40 cr due to better profit margin. Considering the massive expansions planned by all steel companies and increased spending by Indian Railways on infrastructure development coupled with strong economic growth and company’s diversification/integration plan, the future prospect of SCL looks very encouraging. For FY08 it is estimated to clock a turnover of Rs 145~150 cr and PAT of Rs 8 cr i.e. EPS of Rs 13 Rs on equity of Rs 6 cr. For FY09 SCL can post an EPS of Rs 16~17. Hence, investors are recommended to buy at current levels as at a reasonable discounting by 8x times against FY09 earnings scrip has the potential to touch Rs 130 (70% appreciation) in 12~15 months time.

STOCK WATCH 13.02.2008

India Glycols (335.00) is the first and only company in the world to produce ethylene oxide (EO)/mono ethyl glycol (MEG) from renewable agro route, based on molasses against the conventional route of making thru crude. For the Dec qtr it reported stunning nos as sales shot up by 70% to Rs 388 cr and profit jumped up 560% to Rs 67.50 cr posting an EPS of whopping Rs 24 for single quarter. Importantly it recorded an OPM of 27% against 10% last fiscal. To make itself backward integrated company has set up a new distillery with an annual production capacity of 66000 KBL, at Gorakhpur in Eastern U.P and has also recently taken over a sugar company called M/s. Shakumbari Sugar. Its newly set up RAB (concentrated sugarcane juice) unit to supplement ethanol requirement is completely operational now. Further company is diversifying into the field of herbal extraction through 100% EOU at Dehradun, Uttarakhand for high value Nutraceutical herbal extracts having utility in the pharmaceuticals, food and food supplements. Moreover, it is adding Extra Natural Alcohol (ENA) facility at Gorakhpur to meet the requirement of domestic and International market. For FY08 it is estimated to clock a turnover of Rs 1350 cr and PAT (excl extra ordinary income of forex gain) of Rs 165 cr i.e. EPS of Rs 59 on current equity of Rs 27.88 cr. On including forex gain EPS works out to Rs 68. A soild bet.

Indag Rubber (88.00) came out with excellent set of nos for Dec qtr. Sales improved by 25% to 20.50 cr but net profit jumped up 125% to 2.60 cr on back of increased capacity, higher realization and better operating efficiency. Most importantly, for the nine months ending Dec 2007 company has registered an OPM of 15% against 10% last year. It is one of the reputed players in tyre retreading business and operates thru franchisee business by offering the technology, specialized equipment, retreading material, technical back up etc to the franchisee. It has a state of the art manufacturing unit to produce precured tread rubber along with allied items like cushion gum, repair gum, envelopes, other accessories and specialized equipment for retreading. Notably, the operations at its new plant at Nalagarh, Himachal Pradesh have stabilised at a high level of efficiency. To maintain its growth, company is looking to increase its market share in Tamil Nadu, Karnataka and Kerela, which constitute 30 percent of-the Indian retreading market. Besides, due to termination of joint venture agreement with Bandag Inc. USA earlier, company is now exploring the export markets like Middle East, Africa etc. Accordingly it is expected to clock a turnover of Rs 75 cr and PAT of Rs 8 cr i.e. EPS of 15 Rs on equity of 5.25 cr for FY08. Buy at declines.

Cosmo Films (110.00) is the pioneer and one of the largest manufacturers of Bi-axially Oriented Polypropylene Films (BOPP) in India with an installed capacity of 77,000 MTPA. It also manufactures thermal lamination film, an export focused product, which has higher margins. For the Dec qtr its sales improved marginally to Rs 147 cr but PAT shot up by 170% to Rs 11.60 cr on back of back of better operating efficiency. To maintain its future growth company is expanding its capacity by adding two BOPP lines of 40000 MT each. The first line is expected to be commissioned before March, 2009 for which orders have been placed for all major equipments. In addition, it is also adding two new lines in thermal lamination and increasing its capacity from 13500 to 19500 MT per annum. To fund all these it recently placed 31 lakh warrants to be converted @ Rs 107 per share. It has also taken the approval for issue of 10 lakh equity shares under ESOP. For FY08 it is estimated to clock a turnover of Rs 600 cr and PAT of Rs 40 cr i.e. EPS of Rs 20.50 on current equity of 19.40 cr. At a modest discounting by 7x times scrip can touch Rs 150 in 6~9 months.

Roto Pumps (64.00) is a reputed manufacturer of progressive cavity pumps and twin screw pumps which have very wide application in agriculture, domestic and industrial sector. For the latest Dec quarter its sales improved by 15% to Rs 10.40 cr but net profit shot up 40% to 0.80 cr due to operating efficiency. Besides India, it has warehouse cum marketing office in Australia and U.K. and also good network of distributors spread across the globe. On the back of strong industrial growth and robust demand for its product, company has undertaken an expansion cum modernization plan at its manufacturing facilities. Accordingly it may register a topline of Rs 40 cr and bottom-line of Rs 3 cr for fiscal year 2008. This translates into EPS of Rs 10 on a small equity of 3.09 cr. Hence with promoters holding 70% stake, the floating stock is very low. This means scrip can see a vertical rise if it catches market fancy. Moreover for FY09, company has the potential to post an EPS of more than Rs 12~13. At the current enterprise value of Rs around Rs 25 cr, scrip is trading fairly cheap. Long term investors should keep accumulating at decline for a price target of 120 Rs in 12~15 months.

U.S. Stocks Rise

Date: 13.02.2008 JUST SOME HOURS AGO WE GAVE A BUY AND ACCUMULATE CALL AT PRESENT LEVELS OF MARKET.NOW THERE IS A BIG NEWS IN US WHICH TOOK THE STOCKS IN US UP.JUST READ THE FULL REPORT BELOW GIVEN ON BLOOMBERG.U.S. Stocks Rise After Buffett Offers to Help Bond Insurers By Eric MartinFeb. 12 (Bloomberg) -- U.S. stocks rose for a second day, led by financial shares, on expectations Warren Buffett, the world's No. 1 investor, will help calm credit markets by offering to shore up bond insurers' finances. Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co., the three largest U.S. banks, climbed after Buffett said he's willing to take on $800 billion in municipal bond obligations in an interview with CNBC. Monsanto Co., the world's biggest seed producer, advanced for a third day on an increased profit forecast. The Standard & Poor's 500 Index added 20.93 points, or 1.6 percent, to 1,360.06 at 11:04 a.m. in New York. The Dow Jones Industrial Average advanced 210.13, or 1.7 percent, to 12,450.14. The Nasdaq Composite Index climbed 27.51, or 1.2 percent, to 2,347.57. Almost six stocks rose for every one that fell on the New York Stock Exchange. Shares in Europe and Asia also gained. ``It's another potential solution to some of the credit problems,'' Mark Bronzo, who helps manage $11 billion at Security Global Investors in Irvington, New York, said of Buffett's offer. ``That's why the markets are responding well.'' Concern that bond insurers don't have enough money to pay claims on the $2.4 trillion in assets they guarantee has contributed to a 6.8 percent drop in S&P 500 financial shares in 2008. MBIA Inc., the largest bond insurer, lost 80 percent of its value in the last year before today, and smaller rival Ambac Financial Group Inc. slumped 88 percent, on concern that the companies will lose their AAA credit ratings. Buffett's Offer Citigroup added 95 cents to $26.76. Bank of America rallied $1.17 to $43.31. JPMorgan climbed $1.07 to $44.42. Bear Stearns Cos., the fifth-biggest U.S. securities firm, increased $2.15 to $81.91. Buffett said he offered to take on the municipal-bond liabilities of MBIA, Ambac Financial and FGIC Corp. Buffett's Berkshire Hathaway Inc. would provide so-called reinsurance for the debt, he said in an interview with CNBC television. One company turned down the offer and the two others haven't responded, Buffett, chairman of Berkshire Hathaway Inc., told CNBC. MBIA slipped 60 cents to $12.98. Ambac lost 1 cent to $10.47. Buffett's offer doesn't include the insurers' subprime- related obligations. Financial shares also climbed on plans to help delinquent homeowners avoid foreclosure. Bank of America, Citigroup and four other U.S. lenders will announce a plan to offer a 30-day freeze on home foreclosures while loan modifications are considered, two people said on condition of anonymity. Monsanto, Schlumberger Monsanto rallied $4.73, or 4.2 percent, to $118.76 after raising its 2008 profit forecast on higher demand for weed killer and genetically modified corn and soybeans. Profit in the year ending Aug. 31 will increase to $2.70 to $2.80 a share, 20 cents above the range of a Jan. 3 forecast. Schlumberger Ltd. advanced $2.93 to $83.42 after Bear Stearns raised its recommendation on the world's largest oilfield-services provider to ``outperform' ' from ``peer perform,'' saying the company's offshore drilling and exploration make it ``well positioned for the next phase of the oilfield service business cycle.'' Schering-Plough Corp. gained $1.28 to $21.90. The maker of Vytorin and Zetia cholesterol pills reported fourth-quarter profit, excluding some items, of 52 cents a share, beating the 27-cent average estimate of 17 analysts surveyed by Bloomberg. Time Warner Inc. gained 41 cents to $16.04 after UBS AG upgraded the stock to ``buy'' from ``neutral,'' saying it is undervalued. Economy Watch Investors may turn their attention to reports tomorrow that economists expect will show sales at U.S. retailers fell in January for a second month, signaling the biggest part of the economy may be starting to stumble. Still, William Poole, president of the Federal Reserve Bank of St. Louis, said last night that the U.S. will probably avert a recession and the Fed's interest-rate policy is appropriate for the slowing economy. Investors anticipate the central bank will lower its benchmark interest rate by a further half point by mid-March after five reductions to 3 percent since September. Fed officials are attempting to prevent the first U.S. economic contraction since 2001, and last month lowered the overnight bank-lending rate at the fastest pace since 1990. EXPECT SOME RELIEF AND PRE BUDGET RALLY SOON AND IF AT ALL THERE IS TO BE MORE CORRECTION THEN U MIGHT NOT SEE IT SO SOON,AND FROM NOW IT MIGHT BE APPROX 500 POINTS DOWNSIDE ON SENSEX AS OF OUR EXPECTATION. BUT IF AGAIN THERE IS ANY DISTRESS SELLING IN THE MARKET THEN IT MIGHT BE A PROBLEM.

TART BUYING THE STOCKS

Date: 13.02.2008 Friends the stock markets have seen the biggest selling ever in its history, remember the sell call which i gave last week. So now its a very good time to enter into the market again and start buying and accumulating. market now is in extended over sold situation so it might take a strong clue from global or domestic market and may give very good return in next 2 months so go grab the stocks at throw away prices.

SOME RECOMMENDATIONS FROM OUR WEBSITE :-

1. ATLANTA

2. PARSVNATH

3. PRITHVI INFO SOLUTIONS

4. BHAGYANAGAR INDIA

5. ELECTROSTEEL CASTING

6. ASHAPURA MIN

7. ANG AUTO

8. ICSA INDIA

Star Paper - Buy

Date: 13.02.2008

Name of the Company : Star Paper Mills Ltd
BSE code:- : 516022
Listed at : BSE and NSE (Good Liquidity)
Group name : Renowned Group Company of Duncans Goenka
Group (GP Goenka)
Good Qtrly results :
100% growth in Profits on Qtr to Qtr.
Dividend : Consistent Dividend Paying Company
Present Rate : Rs. 35.
Rate : Inclusive of Dividend means, Purchaser will get a
dividend of Rs. 1.80 Per share
Dividend of Rs. 1.80 (Cum Dividend Price)
Book Value without Re-valuation of Assets : Rs. 73.34 Per Share as on 01.01.2008. (Base Equity Capital ) : Rs. 15.61 Crs. only

Very Old Company ( Imagine Re-valuation of Assets)
YEAR EVENTS 1936 - The Company was Incorporated on 31st August, at Calcutta. The Company's object is to manufacture writing, printing and packaging paper including M.G. Kraft Paper. The products are sold under the trade name `Star'.
1972 - 24,640 convertible III pref. shares converted into 2,46,400 No. of equity shares. The remaining 4,616 III pref. shares redeemed on 1.4.1974. 7% III pref. shares reclassified as 9.8% II pref. shares from 1.1.1974.

Small & Beautiful (Guj) 07.02.2008

Simplex Casting (76.00) is engaged in manufacturing of heavy engineering castings in various grades for industries like steel, rail, mining, cement, power and other engineering sectors. To derisk its business model company is now moving up the value chain and is venturing into the machined castings. This will improve the margins going forward and will also lead to addition of new clients which seek the machined components. For Dec qtr although its sales declined by 10% to Rs 35 cr but PAT jumped up 35% to Rs 1.90 cr. Few days back company has bagged a prestigious order worth Rs 12 cr from Indian railways for supply of coco bogies and expects to get more such order in future. Currently it has a very healthy order book position of Rs 120 cr which includes export orders worth Rs 30 cr. Interestingly it has plans to venture into project execution and turnkey business of steel plants and also intends to forward integrate into valve manufacturing business, which is a very high margin business. For FY08 it is estimated to clock a turnover of Rs 145~150 cr and PAT of Rs 8 cr i.e. EPS of Rs 13 Rs on equity of Rs 6 cr. A screaming buy at current levels.

SAAG RR Infra Limited (47.00), a subsidiary of SAAG Consolidated (M) BHD, Malaysia is engaged in execution of infrastructure projects like water and sewer works and construction of specialised buildings (industrial, commercial and residential), roads and oil & gas pipeline construction. Last year it acquired 60% stake in Techni Bharathi-Kochi which specializes in construction of roads for more than two decades. Company reported terrific nos for the Dec’07 qtr as sales jumped up 90% to Rs 22 cr whereas profit zoomed up 155% to Rs 1.75 cr posting an EPS of Rs 1.70 for the single quarter. Few months back it acquired major stake in another company called TPS Builder engaged in EPC contracts. Importantly, during the Dec qtr company has bagged good residential construction contracts worth more than Rs 50 cr from reputed builders like Purvankara, Hiranandani, Mantri Developers etc. It may end FY08 with total revenue of Rs 70 cr and profit of Rs 5 cr i.e. EPS of Rs 5 for FY08. Keep accumulating at sharp declines only.

Haldyn Glass Gujarat (76.00) is engaged in mass production of clear glass bottles and containers with a furnace capacity of 160 TPD. It basically caters to industries such as liquor, pharmaceuticals, cosmetics, beverages, processed foods etc. For Dec qtr, sales grew by only 10% to 17 cr but net profit shot up by 65% to Rs 2.65 cr on the back of higher profit margin. This works out to an EPS of almost Rs 5 for the quarter. Notably, company has the most coveted and excellent clientele with corporates like Mcdowells, Shaw Wallace, Reckitt & coleman, Parke Davis, Glaxo, Pfizer, Ranbaxy, Cadilla, Novartis etc. To capture the increasing demand of the user industry, company has installed a new furnace which is expected to become operational soon. Notably, the liquor, FMCG and pharma industries who are the main user of company’s products are on an upswing due to strong economic growth. This has resulted in substantial surge in demand for the glass bottles, vials and containers. Moreover, Haldyn is looking to explore the untapped export market as well. For FY08, it is expected to report sales of Rs 70 cr and PAT of 7.75 cr resulting into an EPS of 14 Rs on equity of 5.40 cr.

Amar Remedies (31.00) is one of the well known manufacturer of ayurvedic, herbal and cosmetic dental care, personal care, skin care, beauty care & health care products like tooth paste, toothpowder, shampoo, creams, lotions, shaving gel, balm & pain relieving ointment. Besides, it has successfully developed 24 different ayurvedic and herbal medicines and has also obtained the FDA approval for the manufacture and sale of these medicines, which include medicines for hypertension, diabetes, and heart ailments. For the latest Dec qtr it reported 60% rise in sales to Rs 72 cr but net profit increased by only 20% to 5.30 cr. Importantly, company is expecting the clearance certificate from pollution control authorities in next couple of months, post which it will start commercial production at its Dehradun facility. Accordingly for FY08 ending June 2008, it is expected to register sales of Rs 300 cr and PAT of Rs 20 cr i.e. EPS of Rs 8 on equity of Rs 26.20 cr. A strong buy at current levels

La Opala RG Ltd - 32.00 Rs

Incorporated in 1987, La Opala RG Ltd (LORL) is engaged in the manufacturing and marketing of opalware and crystalware in India. It is among the very few well-established domestic crockery brand in the country with a range of 100 products including dinner sets, tea sets, coffee sets, soup bowls & spoons, mugs, plates, casseroles, flower vases and other table wares. Infact, LORL is the market leader with 50% market share in opal ware and 20% market share for crystal ware. While the opal glass tableware is retailed through franchises under the La Opala brand, handcrafted crystal ware are sold through select exclusive outlets under the Solitaire brand. Company’s USP lies in elegant designs, world class quality, microwave safe, chip resistant and 100% recyclable mark. Notably, company is having good distribution network with approx 50 distributors & 9300 dealers. Apart from having pan India presence company is also exporting to 30 countries across the globe including US, UK, Spain, Belgium, France, Germany, Japan, Dubai etc.

LORL’s manufacturing facility is located at Madhupur in Jharkhand having an installed capacity of 3,500 MT & 1,080 MT for opal ware and crystal ware respectively. In order to meet the growing demand and increase its market share company has recently set up a new unit of opal ware at Sitarganj - Uttrankhand with a capacity of 4,000 MTPA at a cost of Rs. 35 cr. Hence company has more than doubled its opal ware capacity to 7500 MT from 3500 earlier. Apart from being fully automated, this plant uses alternate source of fuel i.e. electricity for heating the furnace instead of LPG & furnace oil which are currently used as fuel in the Jharkhand plant. This would lead to a substantial reduction in the fuel cost. Besides, this new plant also enjoys an exemption of excise duty and income tax for 10 and 5 years respectively. Hence in near future company is contemplating to reduce its capacity utilization at its Jharkhand plant & shift manufacturing to new plant to avail lower fuel cost & tax benefit. However, although company has started commercial production in Sept 2007 at its new facility, but due to certain technological backlog, the plant is yet to operate its full fledge production. Meanwhile, company has started exploring the opportunity of supplying its products to big hotel chains in the country which would further aid the growth of the company. It is also increasing its foucs on exports and target to achieve more than 40% of turnover from overseas markets in coming years.

The current euphoric growth of the Indian economy, the rise in the disposable income, increase usage of credit card, maverick changes in the aspiration and emotional level of the consumers and their changing life style have resulted in increase in market size of company product. And LORL with its established brand name, wide network, high quality and large variety of products is all set to capitalize the opportunity. Financially company is estimated to report bumper result for FY09 on back of improved margins and increased revenue from new plant becoming fully operational in few months. At the same time, on the back of higher interest cost and depreciation cost its FY08 nos look very disappointing. For the Dec qtr its sales increased by 20% to Rs 15 cr but NP stood at 0.01 cr against 1.30 cr last fiscal. But for FY09 it is estimated to clock sales of 75 cr and PAT of Rs 7.50 cr i.e. EPS of Rs 7 on current equity of 10.60 cr. With a gross block of around Rs 55 cr and book value of Rs 35, its a value buy at current EV of approx Rs 50 cr. Still investors are advised to accumulate at declines only as scrip can drift down further to hit new lows.

STOCK WATCH 02.02.2008

Numeric Power (725.00) is India’s No 1 manufacturer of uninterrupted power supply (UPS) systems, stabilizers and power conditioners. It also undertakes turnkey projects and offers end to end solution for SCADA/EMS package, large network of industrial process, power transmission support systems and distribution management. For the Dec qtr its sales increased by 45% to Rs 100 cr whereas NP shot up 70% to Rs 10.60 cr thereby posting an highest ever EPS of Rs 21 for the quarter. Last year, company entered into a joint venture with the French UPS major SOCOMEC SA to distribute, market and service the 3 phase range of UPS systems (greater than 10 KVA) products to customers in India. Ironically, around 75% of the ATMs in the country are fitted with UPS supplied by the company. With India's significant power deficits and the ubiquitous outages and voltage fluctuations; company’s products still have significant market potential in the country. For FY08 it may report sales of Rs 375 cr and profit of Rs 38 cr i.e. EPS of 75 Rs on equity of 5.05 cr. Secondly, with an estimated reserve of more than Rs 125 cr on tiny equity of Rs 5 cr, scrips is fuly ripe for liberal bonus as well. A solid bet for medium to long term.

Last week, Mazda Ltd (76.00) declared teriffic set of nos for the Dec qtr. It reported 40% rise in sales to Rs 18 cr and Net profit shot up 80% to Rs 2.40 cr posting an EPS of almost Rs 6 for Q3FY08 alone. Hence its nine months profit of Rs 4.90 cr has already surpassed the entire FY07 PAT of Rs 4.70 cr. Importantly, company has a technical collaboration with world renowned Croll-Reynolds Inc. USA, who holds 12% stake in the company. Besides, HSBC is holding 8% stake under FII category. To cater the increasing demand, Mazda is setting up a third unit with an investment of approximately 5 to 6 crores. It is among the few engineering companies in the world, manufacturing very specialized, high technology and critical equipments for various industries like power, refineries, fertilizers, chemicals, nuclear, sugar, paper, food, pharma etc. For FY08 it is expected to clock a turnover of Rs 65 cr and profit of Rs 6.50 cr. This works out to an EPS of whopping Rs 15 on small equity of Rs 4.26 cr. At a modest discounting by 10x times scirp has the potential to touch Rs 150 in a years time. A screaming buy.

Micro Technologies (196.00) is a global provider of security, safety and life-support solutions with its very unique, hi-tech, first of its kind and innovative products like Home Security Micro HSS, Vehicle Security Micro VBB, Lost Mobile Tracking System, Secure-Bank Black Box, Disaster Management System, Intelligent Black Box, Access Control Solution etc which have huge demand world wide. Further, it has launched couple of dynamic products like Office Black Box for office security, Shop Security System for commercial premises and Electric Black Box for power industry. Once again company has reported excellent nos for the Dec qtr as its topline as well as bottomline grew by 65% to Rs 46.60 cr and Rs 14.40 cr respectively. Besides India, company has huge plans for export especially to China, Japan, U.S., Middle East, South Africa and adjoining countries etc. Recently it also got FCC compliance certification which will increase the recognition of all its products in the global market and will enable for it to penetrate global market. Considering all the factors company is estimated to end FY08 with total revenue of Rs 175 cr and profit of Rs 50 cr i.e. EPS of Rs 47 on current equity of Rs 10.75 cr. In near future company is looking to make preferential allotment of 24 lac warrants which take its total diluted equity to around Rs 16~17 cr. At current market cap of around Rs 300 its trading reasonably cheap and can appreciate 50% in a years time.

Bihar Caustic (77.00) - a 51% subsidiary of Hindalco, is among the leading caustic soda producer in the northern and eastern region of the country having an installed capacity of of 225 tonne per day. Notably, BCCL also enjoys the highest operating margins among it peers - even better than Gujarat Alkalies and Chemfab Alkali. It registered 20% increase in sales to Rs 48 cr but net profit jumped up 70% to 16.50 cr posting an impressive EPS of Rs 7 for the qurter. To maintain its growth, company is in process of expanding capacity of its caustic soda plant by 20% to 265 TPD by addition of electrolysers as well by debottlenecking. Secondly, it has also taken a decision for setting up a stable bleaching powder (SBP) plant at an estimated cost of Rs.7.50. But most importantly, company has commissioned an aluminium chloride project with a capacity of 12000 TPA which is giving a good fillip to its topline as well as bottomline. For FY08 it is estimated to clock a turnover of 185 cr and profit of 50 cr which leads to an EPS of 21 Rs on equity of 23.40 cr. Fundamentally, the scrip can move upto Rs 120 in a years time.

Small & Beautiful (Guj) 01.02.2008

ABM Knowledgeware (48.00) offers solutions for e-governance and systems integration apart from having in-depth domain expertise in computerisation of secretariats, municipal corporations, citizen services, land records, utility billing & revenue administration. Notably company has made a strong turnaround from this fiscal with its operating margin registering a sharp jump to 38% compare to 125 last fiscal. For the Dec qtr, although its topline grew marginally to Rs 7 cr, but NP zoomed up 500% to Rs 1.75 cr. It has already posted an EPS of Rs 5 for the first nine months. For future growth company is developing Strategic Business Units (SBU) focused on revenue earning areas, like urban administration, utility and ERP by inducting experienced professionals and laying down quality processes. It may report an total revenue of around Rs 28~30 cr and net profit of Rs 7 cr for FY08 which translates into EPS of Rs 7 on equity of Rs 10 cr. Accumulate at declines.

Ind Swift Lab (57.00) has once again announced decent set of nos for Dec qtr. Sales improved by 20% to Rs 114 cr and NP increased by 30% to Rs 7.25 cr. It has already received the USFDA approval for its API manufacturing facility at Derabassi Punjab for Clarithromycin. For other API’s, FDA inspection is expected to be done shortly. Presently, exports constitute around 45% of sales with company having presence in 45-50 countries - principally European countries, Asian countries, Latin American countries and Middle East. For future growth the company has a robust product pipeline of 25 products which includes blockbuster drugs as well. It has successfully filed over 72 DMFs with the US, Canadian, UK and European Drug Authorities. Hence company has been aggressively expanding its capacity and has quadrupled its Gross Block to nearly Rs 400 cr from Rs 100 cr two years back. Considering the robust nine month nos, it may end FY08 with sales of Rs 450 cr and PAT of Rs 25 cr. This translates into EPS of Rs 10 on current equity of around Rs 24 cr. Few days back company further issued 25 lakh warrants to be converted @ Rs 70 per share. Post all conversions its diluted equity may be around Rs 27.75 cr. With a book value of whopping 93 Rs and expected CEPS of 16~17 Rs, scrip is trading extremely cheap at a P/E ratio of merely 6x times. A screaming buy at is has the potential to double in 12~15 months.

Post its Dec results share price of Kamanwala Housing (128.00) has tumbled down sharply as they don’t look so encouraging when compared to Dec’06 nos. Its revenue declined by massive 75% to Rs 16.50 cr whereas profit declined by only 20% to Rs 5 cr. But being in the real estate & construction sector and following the revenue model on sale of agreement basis, company is bound to post erratic and lumpy results on quarterly basis. Hence the picture changes for the combine nine months figures. Till now in this fiscal, it reported flat revenues to the tune of Rs 67.50 cr but profit shot up 80% to Rs 15 cr on the back of rising real estate prices. Company is mainly operating in Mumbai and has few good residential projects in Malad & Santacruz and huge commercial project in Bandra Kurla complex. It has several projects lined up for future in Andheri, Mahim, Goregaon etc and even in Hydrabad. Recently it also bought 10,000 sq mtr land in Turbhe for 15 cr. It is also merging its 52% subsidiary company called “M/S. Doongursee Diamond Tools Ltd” which actually holds 1 lakh FSI for its Malad project. To sum up, company is available fairly cheap at a market cap of around 70 cr. It can easily appreciate 50% from hereon.

Cosmo Films (110.00) is the pioneer and one of the largest manufacturers of Bi-axially Oriented Polypropylene Films (BOPP) in India with an installed capacity of 77,000 MTPA. It also manufactures thermal lamination film, an export focused product, which has higher margins. For the Dec qtr its sales improved marginally to Rs 147 cr but PAT shot up by 170% to Rs 11.60 cr on back of back of better operating efficiency. To maintain its future growth company is expanding its capacity by adding two BOPP lines of 40000 MT each. The first line is expected to be commissioned before March, 2009 for which orders have been placed for all major equipments. In addition, it is also adding two new lines in thermal lamination and increasing its capacity from 13500 to 19500 MT per annum. To fund all these it recently placed 31 lakh warrants to be converted @ Rs 107 per share. It has also taken the approval for issue of 10 lakh equity shares under ESOP. For FY08 it is estimated to clock a turnover of Rs 600 cr and PAT of Rs 40 cr i.e. EPS of Rs 20.50 on current equity of 19.40 cr. At a modest discounting by 7x times scrip can touch Rs 150 in 6~9 months.