Performance - 2005 Reccomendation

Performance Scorecard as on November 2007

Sr.	Date	Scrip Name	Recco	High		Return
			Price	Price		in %
	Appreciated more than 5x times
1	4-Apr-05	Rolta ind	80	775		869%
2	31-Jan-05	Usha Martin *	16	136		750%
3	27-Jun-05	Geuns Overseas	98	735		650%
4	25-Apr-05	Venus Remedies	78	572		633%
5	20-Jun-05	Electrotherm	99	644		551%
6	3-Jan-05	Ador Welding	85	525		518%
7	28-Mar-05	Ahmednagar Forg $	56	300		436%
	Appreciated 2x to 5x times
8	1-Aug-05	GE Shipping @	155	721		365%
9	11-Jul-05	Eldeco Housing	113	522		362%
10	10-Jan-05	Navabharat Ferro *	67	304		354%
11	3-Jan-05	KCP Sugars *	21	94		348%
12	4-Apr-05	SAIL	65	281		332%
13	25-Jul-05	Bhagyanagar Met $	12.5	54		332%
14	3-Oct-05	Navabharat Ferro	71	304		328%
15	7-Mar-05	JBF Indsutries	44	184		318%
16	15-Aug-05	Jhunjhunwala Van	41	166		305%
17	13-Jun-05	Hazoor Media $	5.5	21		282%
18	26-Sep-05	Niit Tech	170	638		275%
19	8-Aug-05	Mangalam Cement	74	260		251%
20	31-Oct-05	Fenoplast	15	52		247%
21	29-Aug-05	Zenith Computers	33	114		245%
22	4-Jul-05	Bilpower	72	248		244%
23	14-Mar-05	Panama Petro	57	193		239%
24	21-Feb-05	IPCL @	880	2930		233%
25	14-Nov-05	Rajshree Sugar	69	224		225%
26	18-Jul-05	Delton Cables	50	161		222%
27	24-Jan-05	Sunflag Industries	13	41		215%
28	18-Apr-05	DCM Shriram Ind	78	240		208%
29	28-Feb-05	Laks Prec Screw	55	160		191%
30	10-Oct-05	Shrachi Sec @	141	402		185%
31	2-May-05	GNFC	72	203		182%
32	11-Apr-05	Medi Caps	48	130		171%
33	10-Oct-05	Winsome Textiles	26	70		169%
34	13-Jun-05	Shri Lakshmi Cotsyn	61	164		169%
35	9-May-05	Simbhaoli Sugar #	71	177		149%
36	24-Oct-05	Raipur Alloys	80	199		149%
37	8-Aug-05	Indian Sucrose	28	69		146%
38	31-Jan-05	Ambika Cottom	156	373		139%
39	24-Oct-05	Sayaji Hotel	39	92		136%
40	21-Feb-05	Hanil Era	30	69		130%
41	27-Jun-05	Birla Power Sol	40	92		130%
42	19-Sep-05	GSFC	141	315		123%
43	6-Jun-05	Chemfab Alkalis *	88	195		122%
44	17-Jan-05	Eastern Silks	176	364		107%
45	28-Feb-05	Andhra Sugars	125	258		106%
46	18-Apr-05	Nagarjuna Agrichem	114	235		106%
47	30-May-05	Kilburn Eng #	45	92		104%
48	30-May-05	Dhanuka Pesticide	104	208		100%
	Appreciated 50% to 100%
49	21-Nov-05	Shasun Chemicals	80	157		96%
50	21-Mar-05	Jupiter Bioscience	126	242		92%
51	10-Jan-05	Indsill Electrosmelts	49	93		90%
52	11-Apr-05	Aarti Industries *	45	85		89%
53	4-Jul-05	Sujana Universal	25	46		84%
54	28-Mar-05	Shipping Corp	158	287		82%
55	16-May-05	Ador Fontech	84	151		80%
56	15-Aug-05	Bhuruka Gas	43	77		79%
57	18-Jul-05	Tinplate	60	106		77%
58	25-Apr-05	Pitti Lamination	77	135		75%
59	17-Jan-05	Omax Auto	100	174		74%
60	20-Jun-05	Narmada Chem @	117	203		74%
61	2-May-05	Mahindra Ugine	104	178		71%
62	26-Dec-05	Kilburn Chemicals	50	85		70%
63	3-Oct-05	First Leasing	47	79		68%
64	14-Feb-05	Videocon Int @	335	563		68%
65	17-Oct-05	Jupiter Bioscience	144	242		68%
66	6-Jun-05	Modern Steel	90	149		66%
67	7-Mar-05	National Steel	25	41		64%
68	22-Aug-05	Laffans	25	41		64%
69	23-May-05	Sanjivani Parenteral	64	104		63%
70	14-Nov-05	JB Chem	87	140		61%
71	1-Aug-05	Rama Paper	37	59		59%
72	7-Nov-05	Mahalaxmi Seam	34	53		56%
73	17-Oct-05	Flex Foods	28	43		54%
74	7-Feb-05	KIC Metalics	78	118		51%
75	7-Feb-05	Metalman ind	34	51		50%
	Appreciated 25% to 50%
76	16-May-05	Ind Swift Ltd	62	88		42%
77	21-Mar-05	Rajratan Global	109	154		41%
78	23-May-05	Syncom Formulation	96	134		40%
79	24-Jan-05	Indian Acrylics	14	19		36%
80	29-Aug-05	Haldyn glass	75	100		33%
81	14-Feb-05	Bongaigaon	89	117		31%
82	11-Jul-05	Sambandam Spin	126	165		31%
83	14-Mar-05	Natco Pharma	140	181		29%
84	12-Sep-05	Mawana Sugars	120	150		25%
	Appreciated below 25%
85	5-Sep-05	Vardhman Ind	38	47		24%
86	26-Sep-05	Star Paper	92	110		20%
87	7-Nov-05	Seasons Textille	14	16		14%
88	25-Jul-05	Supreme Petro	37	42		14%
89	22-Aug-05	Agro Dutch	69	78		13%
90	26-Dec-05	Amarjyoti Spinning	70	79		13%
91	9-May-05	Ashirwad Steel	36	40		11%
92	21-Nov-05	Ind Swift Lab	165	181		10%
93	31-Oct-05	Gujarat Carbon Ind	13	14		8%
94	12-Sep-05	Lahoti Overseas	14	15		7%
95	5-Sep-05	Aarti Drugs	154	163		6%
96	19-Sep-05	CCS Infotech	19	20		5%

* ---> 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 a compilation to indicate the potential/quality of recommendations.

Stelco Strips - Rs.19.00

Stelco Strips Ltd (SSL), promoted by Mr. Om Prakash Jindal was incorporated in 1988 as a Private Limited Company and was subsequently converted into a Public Limited Company in June 1989. Its main objective was to manufacture cold-rolled close-annealed (CRCA) steel strips of mild steel, medium and high-carbon steel. Later, it also started producing wider width CR steel strips, which was a huge success. Its products are used to manufacture cycle and auto parts, cycle chains, hacksaw blades, industrial knives, agricultural implements etc. SSL has a well established customer base including reputed OEMs in the domestic and international markets. Currently, the company has put more thrust to increase its export to China, Ethiopia, Vietnam, Germany etc which currently accounts for 36% of its sales.

SSL’s manufacturing plant, which is ISO-9001:2000 certified is located in Ludhiana having an installed capacity of 16,000 TPA for narrow width and 50,000 TPA for wider width of cold rolled steel strips. It has also set up another wider width CRCA steel strip plant with capacity of 36,000 TPA. For future growth, SSL is implementing a forward integration programme of a Continuous Galvanising Line for the manufacture of GP and G.C sheets adjacent to its manufacturing facilities at Doraha in Dist. Ludhiana. Civil work has already been completed and the machinery has started arriving at the site. Trial production is expected to start soon. Galvanized steel has a big requirement in domestically as well as globally in housing & construction activities, for infrastructure projects in consumer durables, automobiles and OEMs.

To fund its expansion, the company has recently made a preferential allotment of 7,10,000 shares to the promoters @ Rs.31 which will bring in around Rs.2 cr. For FY05, its Sales increased by 60% to Rs.128 cr. and NP has more than doubled to Rs.3.51 posting an EPS of Rs.5 on its equity of Rs.6.86 cr. The first half of the current year was quite encouraging although the second half will not be so rosy due to a fall in steel prices. Still for full FY06, the company may report total sales of Rs.150 cr. and NP of around Rs.4~4.5 cr. and post an EPS of Rs.5~6 on its diluted equity of Rs.7.60 cr. Long-term investors are recommended to buy it at current levels as the scrip can double in 12~15 months.

Manali Petrochemicals - Rs.24.50

Incorporated in 1986, Manali Petrochemicals Ltd. (MPL) was promoted by SPIC to manufacture Propylene Oxide, Propylene Glycol and Polyols (Petrochemicals) used as industrial raw materials. Propylene Glycol is manufactured to IP/USP specifications and finds extensive use in pharma preparations, food flavours, cigarettes, paints, cosmetics etc. Its by-products di and tri propylene glycol are primarily used in the resin industry and for manufacturing of Fat-G-bricks - an energy conserving building material. It also supplies Isocyanates imported from USA and Japan along with Polyols to the Polyurethane (engineering plastic) industry and provides technical services to the user industries. Importantly, MPL is the only producer of polyol in India due to the sophisticated technology requirements and being a highly capital intensive industry

MPL has two plants located at Manali on the outskirts of Chennai and close to the plants of Chennai Petroleum from where it sources its major raw propylene through a pipeline. It has an installed capacity of 35,000 MTA of propylene oxide 13,250 MTA of propylene glycol and 14,000 MTA of polyol. MPL also has technical agreement with Technip France to provide the technology of Ato Chem of France for the manufacture of propylene oxide and propylene glycol and that of Arco Chemical Co. of USA. for the manufacture of polyols. Due to the strong demand from user industries and the healthy order book position, both its plant are working at almost 100% capacity utilization.

Financially, MPL was making losses but has dramatically turnaround from FY05. It had a carried forward loss of Rs.35.33 cr. on its equity of Rs.114.70 cr. But under the recent restructuring scheme MPL has adjusted the said losses of Rs.35.33 cr. partly by reducing its equity by Rs.28.67 cr. and partly from the share premium of Rs.6.66 cr. This equity reduction was by way of reducing the face value of its share from Rs.10 to Rs.7.50, which made the company’s net worth positive. Hence the company would be able to borrow at a lower rate of interest in future and can also declare dividend. For FY06, MPL is estimated to clock a turnover of Rs.375 cr. and NP of 45 cr. This works out to an EPS of about Rs.4 on its reduced equity of Rs.86 cr. and face value of Rs.7.50. With a 52 week high of Rs.29, this scrip has the potential to cross Rs.35 i.e.50% appreciation in 6~9 months. Long term investors can expect a price target of Rs.50 in 18 months or so.

STOCK WATCH

Of late, textile scrips have lost their shine and are available at reasonable valuation. One such scrip is APM Industries (Code No: 523537) (Rs.42.30) which has cooled off from a high of Rs.75 to the current Rs.40. Its core business is manufacturing and marketing of synthetic blended yarn and it has recently enhanced its production capacity from 39,104 to 43,136 spindles. For the six month ending Sept 2005, it has already clocked an EPS of Rs.3.5 and it can report an EPS of Rs.8 on its current equity of 4.32 cr. for FY06. Trading at 65% discount to its book value and a PE multiple of just 5 times, it’s a pure value buy at current levels.

Sanjivani Parenteral (Code No: 531569) (Rs.54.30) has steadily progressed by manufacturing high quality medicines, mainly injectibles since 1998 for many reputed companies. Today, it has emerged as one of the biggest manufacturers of injectibles in the country. Its manufacturing facility is WHO GMP certified and is located at Taloja in Maharashtra and manufactures high grade antibiotics and life saving injectibles used in various pre and post-operative infections. Considering order book position for FY06, it can report Sales of Rs.45 cr. and NP of near Rs.7 cr. i.e. EPS of Rs.12 on its diluted equity of around Rs.6 cr. Inspite of such a strong growth story, its market cap is below Rs.30 cr. while it is discounted merely 4 times against its FY06 earning. A potential multibagger like Ankur Drugs!

Laffans Petro (Code No: 524522) (Rs.27.25) manufactures ethylene oxide derivatives such as Ethoxylates, Glycol Ethers, Acetates, Triethonal-amine, and Brake fluids. Due to higher demand and better price realisation of its products, it is expected to perform better in future. For FY05 ending 30th Sept 2005, its Sales grew by 30% to Rs.140 cr. whereas the NP doubled to Rs.4.30 cr. posting an EPS of Rs.5 on its small equity of Rs.8 cr. For FY06, the company is expected to report an EPS of more than Rs.6. Due to its low profit margin and rising raw material costs, the scrip is discounted very poorly on the bourses. But since the crude oil price has stabilized, its only matter of time for it to catch market fancy. With a book value of more than Rs.35 and 52 week high of Rs.40, the scrip is bound to cross Rs.50 in the coming mid-cap bull run.

After hitting a recent high of Rs.95, Kilburn Eng. (Code No: 522101) (Rs.59) has corrected sharply to just Rs.50 plus levels. It operates in areas of process design, engineering, manufacture, installation and commissioning of turnkey plants and systems catering to petrochemicals, chemicals, fertilisers, refineries, oil and gas and food processing. To improve its working capital requirement, the company is coming out with 1:1 rights issue at Rs.25 i.e. 50% discount to its CMP. For FY06 ending 30th Sept’06, it can report Sales of Rs.70 cr. and NP of Rs.8 cr. which means an EPS of Rs.6 on its expanded equity of Rs.13.50 cr. In spite of being in such a high growth sector, the scrip is cheaply discounted and overlooked by investors. A good long-term buy.

Investors have currently dumped metal scrips as the whole sector has lost its shine due to a fall in steel and other metal prices. But Sunflag Iron and Steel (Code No: 500404) (Rs.14.50) seems good scrip to accumulate in such a market condition for the long term. It has a modern state- of- the- art integrated steel plant with a capacity to produce over 2,00,000 MTA of high quality special steel as well as produce 1,50,000 MTA sponge iron Its product mix covers a wide range such as Carbon Special Steel, Alloy Steel, Free Cutting Steel, Ball Bearing Steel and Spring Steel. With an expected EPS of Rs.5 and 52 week high of Rs.27, this scrip has the potential to give 50% return in 12 months.

Another textile scrip, which is a good long-term bet, is Suryalata Spinning (Code No: 514138) (Rs.81.20). This south based manufacturer of cotton and blended yarn has capacity of 57,000 spindles. It is undergoing expansion to increase the capacity to 65,000 spindles and further by another 50,000 spindles over the next 2 years. It also intends to forward integrate itself into weaving and processing of fabric. For FY06, it can clock a turnover of Rs.175 cr. with NP of Rs.7.5 cr., which leads to an EPS of Rs.14 on its current equity of Rs.5.40 cr. Also, the company has made preferential allotment at Rs.88. Its share price can rise 50% in 6~9 months.