STOCK WATCH

It seems that Vivimed Lab (75.00) has posted a loss for the March’09 quarter on standalone basis as its net profit for the full year declined to Rs 14.50 from Rs 16.50 for nine months ending Dec’08. Despite this, it has recorded flat nos for FY09 with sales of Rs 151 cr and PAT of Rs 14.50 leading to an EPS of Rs 15.50 on current equity of Rs 9.40 cr. However on a consolidated basis (incl. financial of M/s James Robinson,UK) company has clocked a turnover of Rs 276 cr and PAT of Rs 22 cr for FY09 which translates into consolidated EPS of Rs 23. Earlier company acquired 100% stake in M/s James Robinson,UK which is an international manufacturer and supplier of speciality chemicals used in hair dyes, pharmaceuticals and photographic films/prints to ophthalmic sunglasses. Company itself is a speciality chemical manufacturer catering to segments including oral care, sun care, skin care, hair care, natural extracts, preservatives, anti microbial, anti oxidants, anti-aging molecule etc. Infact it is world’s 2nd largest manufacturer of Triclosan - an antibacterial used for oral care and one of the top three companies for Avis – a chemical which improves UV absorbing ability of Sunscreen. Of late, it has decided to acquire Har-met International Inc a small importer of pharmaceutical & cosmetic product, based in USA. Organically as well company has been expanding its capacity and has chalked out Greenfield expansion plan in Uttaranchal and Hyderabad. Presently it boasts of having five manufacturing facilities spread across Karnataka, Andhra Pradesh & Uttaranchal. Earlier in 2007, company had raised nearly 60 cr thru FCCB route which may not get converted into equity considering the CMP. Buy at declines.

After ending FY09 with spectacular performance Oil Country Tubular (55.00) has reported decent performance for the Q1FY10. Its topline grew by nearly 20% to Rs 72.50 cr and bottomline improved by 25% to Rs 13.70 cr thereby posting an EPS of Rs 3 for the quarter. For FY09 it has recorded 25% increase in sales to Rs 420 cr whereas its net profit zoomed up 125% to Rs 65 cr on the back of saving in interest cost. Ironically, in the last fiscal company cleared all its term Loans to the institutions and banks thereby gaining the coveted status of debt free. It is one of the leading companies in the world processing a range of tubular goods required for the oil drilling and exploration industry. Its wide product range covers drill pipe, heavy weight drill pipe, drill collars, production tubing, casing, tool joints, couplings, pup joints, nipples, subs, and cross overs. Thus it will be one of major beneficiary of the recent budget as new tax exemptions will be granted to companies laying and operating cross country natural gas or crude or petroleum oil pipeline network for distribution on common carrier principle. This will indirectly boost the demand for pipes. On the other hand it is also quite active on the export front as nearly 50% of total revenue comes from catering to international market. Infact it is contemplating of setting up a joint venture between Golden Dunes International, Oman, & UMW Petropipes (L) Ltd, Malaysia for putting up a pipe threading facility in Oman. Although company hasn’t made the order in hand public still it can clock a turnover of more than Rs 500 cr and PAT of around Rs 75 cr which leads to an EPS of Rs 17 on equity of Rs 44.30 cr. Worth accumulating at every declines

Post dismissal performance for the Dec’08 quarter, Ratnamani Metals (65.00) is coming back on track and has reported satisfactory nos for the March’09 quarter. Its sales improved by 10% to Rs 259 cr and profit increased by 15% to Rs 15.70 cr for the quarter. Accordingly for the entire FY09, it reported nearly 15% growth in turnover to Rs 955 cr although the net profit declined by 20% to Rs 71 cr due to considerable fall in OPM from 21% to 16%. But with the fall and stabilization of metal prices, company is expected to regain its profit margin in coming quarters. Taking the benefit of recent amendments for AS11, company capitalized the exchange fluctuation loss to the tune of Rs 19 cr for FY09. It is basically engaged in manufacturing welded and seamless stainless steel (SS) pipes & tubes, carbon steel (CS) LSAW, HSAW and ERW pipes. To cater the rising demand company is adding 3,000 TPA of capacity in stainless steel tubes and pipes segment, which is to be operational shortly thereby taking the total stainless steel pipe capacity to 22,000 tonne. In carbon steel segment, it is adding 100,000 tonne of HSAW capacity through brown field expansion, which will double its HSAW capacity of 200,000 TPA and take the total carbon steel capacity to 400,000 TPA. As a part of forward integration, company has recently set up a 3 layer polyethylene and epoxy coating line with capacity of 2.7 million sq mtrs. To conclude the future prospect looks promising and scrip can be bought at current levels.

Although ICSA (155.00) reported subdued performance for March’09 quarter but still it ended FY09 on quite a buoyant note. It reported 10% fall in net profit to Rs 34 cr despite an impressive growth of 35% on total revenue to Rs 286 cr for Q4FY09. Still for entire FY09 its revenue was up by 65% to Rs 1111 and net profit increased by 35% to Rs 168 cr posting an EPS of Rs 36 Rs for the year. Company boasts of developing innovative products suitable for power utilities in the field of energy management, energy audit, control application which identifies distribution losses, and help the power utilities reduce their costs & streamline their operations. The list of its popular product includes Intelligent Automatic meter reading, Distribution transformer monitoring system, Theft detection device, Energy audit services, Pole top & Micro remote terminal unit to name a few. Of late it bagged huge orders to the tune of Rs 460 cr from Bihar and Maharashtra State Electricity Boards. More importantly, in the recent budget govt has proposed to enhance the allocation under APDRP scheme by 160% to Rs.2080 cr which will motivate the SEB’s to opt for reduction in T&D losses. Considering its growth potential, scrip is poorly discounted by the market. Keep accumulating at declines for handsome gains in long term

Tamilnadu Newsprint & Paper Ltd - Rs 75.00

Incorporated in 1979, Tamilnadu Newsprint & Paper Ltd (TNPL) was promoted by the Government of Tamil Nadu who still holds around 35% stake in the company. Inspite of being a public sector company, TNPL pioneered the concept of producing paper from Bagasse, namely sugarcane waste thereby using as little wood as possible. Today apart from being one of the lowest cost manufacturer, company boast of having the world’s largest bagasse based paper mill with a capacity of 2,45,000 TPA. It is also the largest exporter of wood free paper from India. TNPL basically manufactures printing and writing paper comprising cream wove, copier and mapiltho paper for business stationery, classical writing, computer stationery and other commercial and quality printing. It offers a range of high-quality surface sized maplitho paper to suit any kind of printing - sheet-fed or web-offset. It is the undisputed market leader for computer stationery in domestic market. Presently company’s product is supplied to over 30 countries across Asia-Pacific, Australia, Middle East, the Mediterranean and the African subcontinent with exports contributing nearly 20% of total revenue. Of late, TNPL has diversified into cement and real estate development in a very small scale.

TNPL is acknowledged as the world leader in technology for the manufacture of paper from bagasse and has the most modern paper mill in the country with unique bagasse procurement, storing, preserving, handling, processing and pulping system. It continues to enjoy its relatively lower reliance on wood because of its vision to make paper primarily from Bagasse - a sugarcane waste product, which is abundant and cheap, as compared to wood which is scarce and expensive. Ironically, due to this technology it actually avoids the chopping down of trees in about 30,000 acres of forest land every year. However it maintains a relationship of 65:35 for bagasse and wood pulp in production to ensure high quality of the paper. After the completion of the Phase – I of Mill Expansion Plan, TNPL now boast of having paper production capacity of 2,45,000 TPA. It has also increased its captive pulp production capacity from 170,000 TPA to 260,000 TPA with element chlorine free (ECF) bleaching. In order to further de-risk the exposure to volatile wood pulp prices, company has been constantly increasing the pulpwood plantation through farm forestry and captive plantation schemes. In the last fiscal i.e. FY09 company has further brought 10,571 acres under its fold thereby taking the total count to 40,291 acres. On the other hand, company is already self-sufficient in power with in-house captive power generation capacity of 86.12 MW and another 35.50 MW thru wind farm. Infact it has been supplying surplus power to State grid.

For FY09, TNPL made an all time high production of 2,54,903 tons of paper against 2,45,471 tons last year with a capacity utilization of 104%. And as usual, for the 18th year in the row company sold the entire production and achieved zero stock of finished goods as on 31st March 2009 which is a unique record in the paper industry. Recently during April’09, TNPL implemented the life cycle extension of its Paper Machine I thru a capital investment of Rs 70 cr. This has improved the runnability of the machine along with improved quality of product. Moreover, considering the robust outlook for paper industry and to maintain its future growth, TNPL is implementing the Phase – II of Mill Expansion plan which will augment the production capacity by whopping 60% to 400,000 TPA from the current 245,000 TPA. The project is expected to complete by June 2010 and involves an investment of Rs 1000 cr (increased from Rs 725 cr estimated earlier). The project has been funded mostly by debt and partially thru internal accruals. Interestingly, TNPL has entered into the carbon trading by having got its Bio-methanation plant registered as CDM project with UNFCCC and is expected to get 37,000 CER as carbon credit till 2013. Moreover it is setting up a mini cement plant with a capacity of 400 tpd for producing high grade cement using the lime sludge and fly ash – the waste material generated in the process of manufacture of paper. TNPL is also constructing an IT Park measuring an office area of 4 lakhs sq. ft. on its surplus land in suburb of Chennai. Both these projects are estimated to complete by mid 2010.
Financially as well as fundamentally company is on a strong footing, but however it has taken a significant debt on its books to finance the mill expansion plan. For FY09 company is estimated to have debt equity ratio of 1.3~1.4x times which is although not alarming. For FY10 it may pay around Rs 125 cr of interest which will eat up nearly 50% of profit thereby having a financial leverage of more than 2x times. However post commencement of the expanded capacity, cash flow will improve considerably and by FY12 its debt equity ratio may fall back to 0.80x times or so. Well, meanwhile for FY09 TNPL has recorded 17% growth in sales to Rs 1097 cr whereas net profit declined by 5% to Rs 107 cr due to substantial jump in interest cost. This translates into an EPS of Rs 15.50 on equity of Rs 69.20 cr. Company has maintained its dividend at 45% which gives an whopping yield of 6% at CMP. However, company has recognized Rs 18 cr gain on exchange fluctuation of earlier years. Moreover it hasn’t provided Rs 47 cr mark to market notional loss on forex derivative contracts but instead created a hedging reserve account. Although its an non operational item but any actual booking of loss may dent the bottomline in the coming years. But considering company’s eco friendly technology, Cash EPS of Rs 30, dividend yield of 6%, book value of nearly Rs 100 and most importantly future growth, scrip is available relatively cheap. Investors can buy at dips to get 50% return within 15 months.

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Last week Numeric Power (380.00) reported almost flat nos for the March’09 quarters with net sales of Rs 113 cr and net profit of Rs 10 cr thereby posting an EPS of Rs 20 for the single quarter. Effectively for entire FY09 it recorded 5% growth in topline to Rs 409 cr but PAT declined by 15% to Rs 33.50 cr. This translates into EPS of Rs 66 on small equity of Rs 5.05 cr. Incidentally, on a consolidated basis company has clocked a turnover of Rs 443 cr and profit of Rs 38 cr i.e. EPS of Rs 76. Thus company is currently trading at a P/E multiple of 5x times against its current consolidated earnings. Company has eight world class manufacturing facilities spread across Pondichery-TN, Chennai-TN, Parvanoo-HP and Colombo-Srilanka, thereby emerging as the biggest integrated manufacture of UPS in India. 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. It has an enviable and high profile clientele including Infosys, Siemens, Intel, Philips, Microsoft, Veritas, HDFC, Citibank, ICICI, RBI, NIC, Reliance, ABB, BMW, NCR, Nokia, major stock exchanges etc. As per rough estimates, around 75% of the ATMs in the country are fitted with UPS supplied by the company. Recently, company ventured into solar power generation using Photo Voltaic Modules and initially intends to develop solar hybrid UPS systems. To become more efficient, it is backward integrating into batteries and is scouting for a technology partner to set up a battery manufacturing unit. To conclude, company has the potential to report 20% growth for FY10. Keep accumulating at sharp declines.

For the latest March’09 quarter Tantia Construction (65.00) has reported excellent performance by clocking an operating margin of impressive 15%. Thus is registered 160% jump in net profit to Rs 12.50 cr although its topline remained flat at Rs 169 cr. Eventually for entire FY09, its PAT improved by 12% to Rs 17.25 cr and revenue increased by 25% to Rs 450 cr thereby posting an EPS of Rs 11 on current equity of Rs 15.57 cr. This stupendous performance is backed by good order booking in the last few months. Its current order book position stands healthy at Rs 1500 cr which is more than 3x times its FY09 turnover thereby giving strong future revenue visibility. Company boasts of having presence in roads and highways, railways, tunnels, bridges and flyovers, urban instructure, sewerage and drainage, civil & housing construction etc. Lately, it also ventured into the lucrative marine infrastructure space, power transmission and distribution segment and aviation infrastructure. Infact, it is among the five Indian companies capable of providing ‘foundation-to-finish’ for mega railway bridges spanning 2-km or more. More importantly, company has a very strong presence in the eastern and north-eastern region which gives it an edge, as very few players are interested in bidding in these regions due to difficult terrain. With Mamta Banerjee being the railway minister a special fund has been created for development of north east railway in the recent railway budget. This augurs well for the company as its forte lies in railways infrastructure. A decent bet for long term.

International Combustion (215.00) has reported very flat nos the March’09 quarter and ended FY09 with topline of Rs 99 cr (up 5%) and bottomline of Rs 10 cr (down 15%). Thus it clocked an EPS of Rs 41 on a very tiny equity of Rs 2.40 cr. Company is a leading manufacturer of sophisticated plant and machinery for core industries. 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. To meet the increasing demand, company has initiated an expansion programme for augmenting the manufacturing capacity of the gear box/geared motor division. It is also upgrading the manufacturing capacity of the Heavy Engineering Division. Ironically, scrip which crossed Rs 900 in Dec’07 tumbled down to as low as Rs 80 in March’09 and has now recovered to above Rs 200 in a very short span. For FY10 it can report sales of Rs 125 cr and profit of Rs 14 cr leading to an EPS of Rs 58. Even at modest discounting by 5x time scrip can move up to Rs 300 by March’10. A safe buy.

Last week, Ind Swift Lab (40.00) reported satisfactory result for March’09 quarter. Sales grew by 20% to Rs 148 cr but net profit remained flat at Rs 11 cr posting an EPS of little more than Rs 4 for the quarter. Accordingly for the entire FY09 its sales jumped up 30% to Rs 588 cr and profit increased by 10% to Rs 35 cr after considering onetime extraordinary expense of Rs 5 cr. Thus company reported an EPS of Rs 16 on current equity of Rs 25 cr. Notably, company has started exporting to USA after getting USFDA approval in Sept 2007 for its API manufacturing facility at Derabassi Punjab for Clarithromycin. Presently, exports constitute around 40% of sales with company having presence in 45-50 countries across globe. For future growth the company has a robust product pipeline of 25 products which includes few 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 increased the gross block by almost five times to Rs 470 cr from 100 cr in 2005. With a healthy book value of Rs 97, scrip is trading relatively cheap at a P/E ratio of 2.5x times. However high debt equity ratio is cause of concern.

Ind Swift Ltd - Rs 19.00

Incorporated in 1986, Ind Swift Ltd (ISL) is the flagship company of the north India based Ind Swift group which has diversified interest in pharmaceuticals, education, infrastructure, media & publication and software development. However the group’s core business remains manufacturing of pharmaceuticals products as it is a leading player in both the segment of industry namely bulk drugs and formulation. In order to concentrate & grow both the segments independently, the formulation business is looked after ISL whereas Ind Swift Lab another listed group company specializes in bulk drugs and API’s (active pharmaceutical ingredients). Thus ISL’s forte lies in production of various formulations, branding and marketing them in finished dosage form encompassing several therapeutic segments. It mainly focuses on critical but relatively under crowded therapeutic segments like pediatrics, cardiology, gynecology and diabetes apart from having significant presence in high growth segments like Cardiology, Diabetology, Anti depressant, anti-allergic, Anti- infective, Neurology & Oncology. Infact company boasts of formulating Neurophen - a composition of Ibuprofen & Acetamenofen for the first time in India apart from introducing another formulation Suprox SR, a composition of Isoxprine Hel in tablet form. It also claims to be the pioneer for the mouth dissolving tablets technology in India. Notably, ISL is among the top 500 fortune companies of India and have been ranked at No. 35 by IMS/ORG in Pharmaceutical industry during 2007-08 with a portfolio of 650 products and a nationwide distribution network comprising 1200 marketing professional, 50 offices in India, and 3000 stockists and distributors.

ISL’s core competency lies in its manufacturing capabilities as it has 7 state-of-the art multipurpose, multilocation manufacturing set-ups spread over an area of 12,00,000 sq ft with an installed capacity of 3 billion units comprising tablets, capsules, Ointments, Injectable, Liquids & Dry Syrup. All it production facilities are spread across tax free zone in Parwanoo & Baddi (HP), Samba(J&K), Jawaharpur (Punjab). Importantly, all the units are built according to current guidelines of USFDA and comply with WHO cGMP standards. Most of its units are audited and certified by international rating agencies like MHRA(UK),TGA(Australia), MoH(UAE), TFDA(Tanzania), NDA(Uganda) and DACA(Ethiopia). Simultaneously, ISL put equal emphasis on Research & development and gained critical expertise in development of non infringing process, novel drug delivery system, new process development for cost effectiveness, NCMR handling etc. Its only because of its strong R&D effort, company has been able to launch on an average 25~30 products over the last five years. After gaining commands over manufacturing and R&D, ISL is now focusing on marketing aspect. To effectively track the operations and growth of each therapeutic segment, ISL has formed 12 different marketing divisions. Out of these 'Diagnozis' division dealing in medical equipments & devices for personal health care was launched in December 2007 and 'Animal Health Care' division is also relatively new. On the other hand its ‘Ethical’ marketing division continues to excel with regular introduction of unique products. Of late it has introduced Topclav 625, Emtee 25, Timcol Eye Drops etc and Cirrholiv which has proved out to be extremely useful in curing Hepatities and other liver disorders. Interestingly, ISL’s strategy is counter to general industry’s practice of maximizing sales thru higher dosage consumption, with introduction of one dosage per day thereby resulting into greater consumer acceptance. Infact, ISL’s few brands such as Amyclox, Swimox, Oxo, Swiflox and Cafzone have been rated as the top brands in Generics commanding sales of more than Rs 25 cr each in short time. Whereas its brand Swimox and Amyclox are among top 300 brands of the industry. Besides, company also exports to Latin America, Middle East, African countries, Srilanka, Vietnam, Myanmar, Combodia and CIS countries.

Apart from creating and marketing its own brand, ISL has put special thrust on CRAMS (Contract research and Manufacturing Services) business. Company provides contract research from conceptualization till the final dossier of the product. Till date it has delivered two major R&D contracts and is expecting more research contracts on product development and stability data profiling. Side by side it also offers complete support to international partners for preparing and filing dossiers for finished dosages. On the other hand, it supplies large quantities of products to reputed Indian pharma companies including Ranbaxy, Cipla, Glenmark, Lupin etc. It even has contract manufacturing alliances with different companies in UK, Europe, Turkey and Iran. For future growth company is betting high on contract manufacturing and expects this segment to contribute more than 30% to its total bottomline.

Financially, ISL has over leveraged itself with a high debt equity ratio of more than 2x times. Sarcastically, its detrimental for growth in bottomline as cost of debt works out to nearly 8% whereas return on capital employed is merely 3%. However for the year ending March 2009, it recorded 15% growth in sales and net profit to Rs 589 cr and 31.50 cr. This works out to an EPS of Rs 8.50 on tiny equity of Rs 7.40 cr having face value as Rs 2/- per share. On the back of constant capex, company follows a very low dividend payout ratio policy. It has augmented its Gross Block at CAGR of 60% in the last 5 years. At an estimated reserve of more than Rs 200 cr, scrip is trading at steep discount of 65% to its book value. Moreover for FY10, ISL is expected to clock a turnover of Rs 700 cr and PAT of Rs 38 cr on standalone basis. Incidentally, company holds 26% stake in Ind Swift lab which is another growing company and currently commanding a market cap of Rs 100 cr. To conclude, although ISL looks reasonably valued at EV/EBIDTA of 5.50x times, still investor can accumulate it sharp declines for 50% gains within a year.

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Patels Airtemp (55.00) reported decent nos for the March’09 quarter. Despite sales declined by 5% to Rs 20 cr PAT improved by 15% to Rs 1.80 cr. For the full year it recorded 25% rise in turnover to Rs 68.50 cr and 40% increase in net profit to Rs 7 cr thereby posting an EPS of Rs 14 for FY09. Company has declared 18% dividend against 15% last year. Company is engaged in the manufacture and sale of extensive range of heat exchangers such as shell & tube type, finned tube type and air cooled heat exchangers, pressure vessels, air-conditioning and refrigeration equipments and turnkey HVAC projects in India & marketing of equipments even outside India. It has technical collaboration with M/S. TEK FINS Inc. USA for design and manufacture of air cooled heat exchangers. It supplies to core industrial sectors like power, refineries, fertilizers, cements, petrochemicals, pharmaceuticals, textiles and chemical Industries. For future growth company is concentrating more on high value added engineering products and has even got its product the coveted ASME `U' Stamp authorization. For FY10 it has the potential to register further 20% rise in revenue and profit. At a current enterprise value of Rs 35 cr and PE ratio of less than 4x times, scrip is trading reasonably cheap. Accumulate at declines.

Recently, ABG Shipyard (200.00) reported 35% rise in total revenue to Rs 371 cr and 15% increase in net profit to Rs 53 cr for March’09 quarter. Accordingly for full year its turnover shot up by 45% to Rs 1412 cr but PAT improved by 7% to Rs 173 cr. Thus it posted an EPS of Rs 34 on current equity of Rs 51 cr. Taking the benefit of recent amendment in AS11, company has capitalized Rs 22 cr of exchange difference. It is one of India’s largest private sector shipbuilding companies & established manufacturer and service provider of a variety of ships, including bulk carriers, interceptor boats, diving support vessels, anchor handling supply ships, dynamic positioning vessels, anchor handling tugs & other multipurpose vehicles. Till date it has delivered 104 ships and has further order book position of nearly Rs 10,000 cr to be executed in next 4~5 years. In the October last year it bagged its first rig order from Essar Oilfields Services Ltd, Mauritius. Importantly, company didn’t see any major order cancellation from its customers till now despite the all round fear and recession around the world. Notably, ABG is the first ship building company in private sector to actually receive the subsidy to the tune of Rs 19 cr from govt last year. As the shipbuilding industry in India is still at nascent stage and commands hardly 1% share in world market, it has tremendous growth potential ahead. Recently company has made a counter offer of Rs 375 per share (against Bharti Shipyards Rs 344 per share) to share holders of Great offshore Ltd to acquire 32% stake. This will lead to cash outflow of Rs 471 cr for which company is looking to raise the money thru equity placement. Buy at declines

Last week Accurate Transformers (30.00) reported very flat nos for the March’09 quarter as topline stood at Rs 91 cr and PAT at Rs 3.50 cr. As the company caters to govt organizations, its fourth quarter nos always constitute almost 50% of sales and profit. Accordingly it ended FY09 with 10% rise in sales to Rs 195 cr whereas net profit remained flat at Rs 7 cr. This translates into EPS of Rs 24 on a very tiny equity of Rs 3 cr. Company is engaged in manufacturing of power as well as distribution transformers ranging from 1 MVA to 40 MVA - in up to 220 KV class. It is looking to venture into manufacturing of higher capacity power Transformers of 160 MVA from FY10. It also carries out rural electrification project which involves the complete setting up of electricity in remote areas including the laying of lines, poles and substations. Unfortunately company is working at very low capacity utilization due to high working capital requirement and shortage of funds. On a gross block of Rs 11 cr company claims of having an installed transformer manufacturing capacity of 8000 MVA, of which 3000 MVA in Dehradun and Haridwar are relatively new and enjoy income tax and excise exemptions. Although market experts are skeptic about this company still aggressive investors can buy this scrip as it look grossly cheap at current market cap of Rs 15 cr.

HBL Power (100.00) came out disappointing nos for the March’09 quarter. It recorded 20% decline in net profit to Rs 18 cr on a flat sales of Rs 284 cr. Despite this on the full year basis, its topline grew by 30% to Rs 1244 cr and bottomline increase by 35% to Rs 91 cr leading to an EPS of Rs 37 on equity of Rs 24.30 cr. Company is a technology focused manufacturer of several ranges of specialized application batteries i.e. nickel cadmium (pocket, fibre, and sintered plate), lead acid (VRLA, Tubular, LMLA), silver oxide zinc, lithium, thermal, etc. Infact it is the market leader in VRLA (valve regulated lead acid) and NCPP (nickel cadium pocket plate) batteries and enjoys 50% market share of domestic telecom market. Infact it is the world’s second largest player in nickel cadium alkaline batteries and stands 3rd for Nicad Passenger aircraft batteries. It also manufactures other power electronics such as thyristor controlled battery chargers, earth leakage monitors, battery monitoring systems, industrial chargers, uninterrupted power systems, distribution boards etc. It even has a dedicated railway division to execute end-to-end turnkey railway signaling works, starting from yard design, estimation, procurement, installation and commissioning. Recently it has put up two new factories at Vizianagaram and SEZ Vizag in Visakhapatnam under a capex of Rs 150 cr and is now setting up a small facility in Mahape, New Mumbai. It is also planning to set up of JV Company in Saudi Arabia to manufacture Industrial Batteries. As the prices of lead, nickel, copper, tin and other metals has fallen considerably in the recent times, company may report better performance in coming quarters. Meanwhile just to improve the liquidity company has decided for stock split into face value of Rs 1/- per share. Although no super growth is expected for FY10 still this company deserves a better discounting and valuation. Keep accumulating at declines.