STOCK WATCH

*Amara Raja Batteries (Code No: 500008) (Rs.106.25) is the exclusive OE supplier to Ford, Daimler Chrysler and Swaraj Mazda besides supplying to Ashok Leyland, Fiat, General Motors, Hindustan Motors, Honda, Mahindra & Mahindra and Telco. A few months back it bagged an order of 1, 00,000 batteries from Maruti which is 10 per cent of its total capacity of 10 lakh batteries. For the six months ending 30 Sept. 2004, its Net sales increased 22 per cent to 94 cr. whereas its NP jumped 300 per cent to Rs6.80 cr. For FY05, it is expected to report an EPS of Rs12 and its share price has the potential to rise 50 per cent in the next 6 months.Of late, tea prices are shooting up and so are the share prices of tea companies.

* Williamson Tea Assam (Code no: 508238) (Rs. 152.55) among them appears promising. It has 17 tea gardens in Assam spanning over 9159 hectares with a production capacity of around 20.24 million kgs. It is reportedly doing well and is expected to end FY05 with an EPS of Rs18. Aggressive investors could accumulate this scrip at sharp declines for a price target of Rs200 shortly.

*Indo Asian Fusegear(Code no: 517318) (Rs.: 83.65) manufactures a wide range of high quality electrical control & safety devices such as miniature circuit breakers, residual current circuit breakers, HRC fuses, transformers, switchgears wires & wiring accessories, industrial plugs & sockets, contactors relay, distribution boards etc. The company is reportedly attracting good orders and is expected to post and EPS of Rs14 for FY05. A strong buy at every dip. Once it comes out of the T2T segment, the share price can cross Rs120.

*Ester Industries (Code no: 500136) (Rs. 23.75) has not participated in the bull run since long. It is one of the lowest cost producers of PET chips. For future growth, it is setting up a highly automated 24 KT polyester film unit in Oman in the Gulf. For FY05, is expected to post an EPS of Rs4.5 and its share price can rally smartly in the next 6 months.

*GAIL (India) (Code no: 532155) (Rs.234.70) is India’s largest natural gas distribution company operating a gas pipeline network of over 4600 kms. across India. It is the only player with a national pipeline network, the backbone of which is the Hazira-Bijapur-Jagdishpur (HBJ) pipeline connecting western and northern India. Further, the company has almost completed the construction of the DVP (Dahej-Vijaipur) pipeline. For FY05, it is expected to register sales of around Rs13,000 cr. and a NP of Rs1800 cr., which would result in an EPS of Rs21. A safe long term bet.

*Shah Alloys(Code no: 513436) (Rs.126.50), the second largest stainless steel producer in the country, is setting up a backward integration project at Gandhidham for producing sponge iron, ferro alloys and power. For the six months ending 30 Sept. 2004, its sales was up 13 per cent at Rs477 cr. but NP increased 22 per cent to Rs15.30 cr. posting a half-yearly EPS of Rs17. For FY05, it could report an EPS of Rs38. A strong buy.

*Paper prices are still ruling firm and are expected to rise further due to strong international demand. The Star Paper (Code no:516022) (Rs.:52.15) scrip has consolidated since the last few weeks and the downward fall is limited. For FY05, it is expected to report impressive numbers and can post an EPS of Rs12. A very good bet for the long term.

*Varun Shipping (Code no: 500465) (Rs.:32.15) has posted fantastic numbers for first half of FY05 and is expected to repeat its performance in the current second half as well. Recently, it acquired its seventh LPG carrier and could post an EPS of Rs6 on its expanded equity post rights issue for FY05. Accumulate it at dips for long term gains.