Performance - 2004 Recommendation

Performance update as on November 2007

Sr.	Date	Scrip Name	Recco	High		Return
			Price	Price		in %
	Appreciated more than 5x times
1	6-Dec-04	Alphageo	60	805		1242%
2	27-Dec-04	Orissa Sponge	56	748		1236%
3	27-Sep-04	Madhucon Proj *	41	438		968%
4	29-Nov-04	Bhushan Steel	132	1161		780%
5	25-Oct-04	Deccan Cement	50	387		674%
6	18-Oct-04	Guj Nre Coke *	22	137		523%
7	4-Oct-04	Dhampur Sugar	46	272		491%
	Appreciated 2x to 5x times
8	22-Nov-04	Petron Engineering	89	442		397%
9	25-Oct-04	Shah Alloys * $	44	210		377%
10	20-Sep-04	Man Ind	83	332		300%
11	20-Dec-04	Indo Asian	93	320		244%
12	27-Sep-04	Monnet Ispat	134	460		243%
13	13-Dec-04	Valecha Engineering	121	410		239%
14	4-Oct-04	India Glycols	135	446		230%
15	11-Oct-04	Shivalik Bimetal * $	13	42		223%
16	18-Oct-04	Uttam Glava	27	75		178%
17	29-Nov-04	Jindal Stainless	83	224		170%
18	27-Dec-04	Aarvee Denim	67	166		148%
19	1-Nov-04	Subros	119	285		139%
20	22-Nov-04	Bharat Seats	75	177		136%
21	22-Nov-04	Bharat Gear	52	119		129%
22	8-Nov-04	Finolex Ind (Uflex)	64	129		102%
23	11-Oct-04	Kabra Extrusion	65	131		102%
	Appreciated 50% to 100%
24	13-Dec-04	Bihar Caustic	51	87		71%
	Appreciated 25% to 50%
25	6-Dec-04	Tata Metalics	150	221		47%
26	20-Dec-04	Surana Telecom *	36	49		36%
	Appreciated below 25%
27	1-Nov-04	Sathavana Ispat	52	57		10%

* ---> Recco price adjusted for Split

$ ---> Recco price adjusted for Bonus

# ---> Recco price adjusted for Rights

@ ---> Demerger / Merger Adjustment

Disclaimer: These are not the actual profit figures booked by any investor but an compilation to indicate the potential/quality of recommendations.

Ador Welding - Rs.84.00

Ador Welding, formerly Advani Oerlikon, is a leader in the welding consumables and equipment industry catering to industries like steel, power, oil & gas, auto and infrastructure and is one of the largest exporters of welding equipments. It caters to two segments - welding and project engineering & equipment. It has presence in both electrodes and coated wires apart from welding equipment. Welding (consumables and equipment) accounts for 95 per cent of its sales. It offers automatic and manual welding equipment and products but only 20 per cent of the welding in India is automatic leaving ample scope for growth in this value-added segment.

The Government’s thrust to augment infrastructure has also translated into good order booking for the company’s customers, which in turn means more opportunities for its Welding Products. Another major area of growth comes from the Middle East. Major expansions, new plants and upgradations of existing plants in the Middle East are being announced regularly. Customisation of expertise at Ador to provide products over and above their normal requirements has enabled it to get large volume orders from select overseas customers. Hence, Ador is focusing on the export market with its value-added products to shore up revenues.

Ador has constantly strived to increase competitiveness by lowering operating costs, expanding the Sales Distribution reach of its products, benchmarking and improving on the best-of-class products and reducing wastages. The company has been continuously upgrading its IT infrastructure for reducing transaction costs and improving interactions with customers through instant accessibility. Few months back, Ador established a new manufacturing plant for Welding Consumables (Welding Electrodes) at Silvassa, a designated backward area in the Union Territory of Dadra and Nagar Haveli, with a capacity of 2500 MT per annum on a single shift basis.

On the financial front the company has a strong debt-free balance sheet. It has an impressive dividend payout ratio of more than 40 per cent of profit and in FY05 we expect it to declare 30 per cent dividend. For the fiscal ending 31st March 2005, the company could register sales and net profit of Rs. 185 cr and Rs 13.50 cr respectively. On an equity of Rs 13.60 crore and face value of Rs 10 per share, EPS works out to Rs 10. A strong buy with a price target of Rs.120 in the next 8~12 months.

KCP Sugar - Rs.208.00

KCP Sugar Ltd is a Chennai based well focused, fully integrated sugar manufacturer with a total crushing capacity of 11,500 TCD at its two plants located at Vuyyuru and Lakshmipuram. The unit at Vuyuru has a capacity of 7500 TCD and the second unit at Lakshmipuram has a capacity of 4000 TCD. It also has the capacity to produce 60,000 tonnes of molasses, 25,000 litres per day of industrial alcohol and 12,000 tonnes of bio fertilisers. Though in the South, KCP sells around 85 to 90 per cent of its sugar in the eastern region where the price realisation is much higher. Hence the company has the best of times as sugar prices are ruling high due to shortage in sugarcane production all over India and are expected to rule high in future too due to the demand supply scenario.

The South has additional advantages as Andhra Pradesh does not have administered price (SAP) for sugarcane. Hence KCP pays only as per central advised price (statutory minimum price) for sugarcane which is lower than what UP based manufacturers pay as per their SAP. Secondly, the company is cashing on its huge carryover stock, which will boost its topline as well as bottomline. Moreover, due to decent rainfall in the south this year, it will have enough sugarcane for crushing in 2005.Infact the management expects the production to rise marginally. To further capitalise on the emerging opportunities, the company is installing a 50 kilolitre per day distillery cum ethanol plant at Vuyyuru, which is likely to be commissioned shortly. The Company has also initiated steps to set up a co-generation unit at Lakshmipuram, which will enable it to sell about 2 to 3 MW of power to State grid in 2005. The company is also actively considering setting up 20 MW co-generation powerplant at the Vuyyuru unit as well. For FY05 it is expected to post an EPS of Rs. 30.

STOCK WATCH

Aftek Infosys (Code No: 530707) (Rs.124.25) has announced 1:2 bonus and will go ex-bonus by last week of January 2005. The company is reportedly doing well and will post an EPS of more than Rs.12 for FY05. FIIs are also quite active in this counter and the share price is tipped to trade at Rs.110 ex-bonus. Aggressive investors can buy cum bonus and stay invested for 2 months to reap handsome returns.

Man Industries (Code No: 513269) (Rs.85.65) is expecting to bag huge orders in 2005. The scrip has not rallied in this bull run and is still available quite cheap. Patient investors are advised to accumalate at the current level as the company could post an EPS of Rs.18 in FY05. At though rising steel prices is a concern still this is the best bet among its peer group.

Being in T2T Lincoln Pharma (Code No: 531633) (Rs.34.15)is lying quite low inspite of strong fundamentals and dynamic future prospects. The company has given more thrust on Research & Development in formulation and is getting its NAMSAFE patented. The scrip has the potential to cross Rs.50 easily and may shoot up the way Ankur Pharma did.

Of late Steel scrips has witnessed a smart rally barring Jindal Stainless Steel (Code No. 532508) (Rs.90.10). The company has massive expansion plans and is increasing its steel melting capacity from 5,00,000 to 6,00,000 TPA, Steckel Mill form 4,00,000 to 5,00,000 TPA and Cold Roll capacity will be increased to 2,50,000 from 90,000 TPA. It has also lined up an ambitious greenfield project at Duburi in Orissa. For FY05, the company is expected to post diluted EPS of Rs.16 and the share price could cross Rs.120 soon.

Alphageo (Code No: 526397) (Rs.59.35) is a pioneer seismic contractor engaged in the business of seismic data acquisition, processing and interpretation. It also undertakes seismic surveys and offers a range of services for oil exploration & drilling like evaluation, reservoir services and production services. Surprisingly, its share price has not rallied in this bull run and is still trading reasonably cheap at Rs.58 This company can be a pure multibagger if held patiently for 2~3 year. For FY05, it is expected to register an EPS of Rs.11 and for FY06 it can even post Rs.20 Grab it at every dip.

In the tech sector in such a high market, Rolta India (Code No: 500366) (Rs.80.60) is trading quite cheap with a limited downward risk. Fundamentally, its very strong with book value of Rs.80 and expected EPS of Rs.14 for FY05. It declared 30 per cent in FY04 which means a good dividend yield as well at the current market price. Long term investors are recommended to buy it for Rs.120 in 1 year.