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Buy Pratibha Industries

2011-04-06T06:40:00.001-07:00

PRATIBHA INDUSTRIES LTD.

Buy at Rs. 67.25 Target at Rs. 88.00

INTRODUCTION

Pratibha Industries Limited (PIL), the flagship company of the Pratibha Group, was established in 1982, by a dynamic young entrepreneur Ajit B Kulkarni. The firm started its foray with manufacturing of SFRC manhole covers & frames, which were designed & introduced as a replacement to the conventional cast iron manholes cover & frames. Substantial saving on costs and elimination of theft vis-à-vis the conventional cast iron product ensured huge acceptability with practically all government clients throughout the country.

Till the early 90s the firm was focusing only on pre-cast products. In 1992, the firm decided to extend its presence in the civil construction industry and started participating in bids invited for such projects by government / semi- government departments. In-depth technical knowledge and sound management ethics ensured that the company received its first major mass-housing project (Rs125 million) from CIDCO of Maharashtra Limited in the same year.

In 1994, the company realized that water supply projects hold great potential. However, it did not possess any established expertise in execution of such projects. Inorganic route through formation of a joint venture with a competent fellow contractor was the only way out and therefore, the first strategic alliance with Coromandal Prescrete (P). Limited, a Hyderabad based Contractor was inked. The joint venture successfully bid and was awarded one package from the prestigious Hitawne Water Supply Scheme. Thus, started the journey of Pratibha in water supply projects, a segment from which the company derives more than 70% of its revenues.

The company took over Teknoworks (India), a Mumbai based firm engaged in manufacture of mechanical equipments and structures, in 1995. The company has a turnover of nearly INR 1000 million and derives 30% of its revenues from exports.

OVERVIEW

Till 2001, the operations of PIL were restricted to the state of Maharashtra alone. The next challenge for Pratibha was to consolidate and strengthen its engineering department to make its presence felt in more complex & integrated Water Supply projects, as also to form alliances with fellow contractors of repute to ensure fulfillment of this goal. The company started working towards this by establishing a design department and bidding for projects of complex nature, which also involved designing, in Joint Venture with reputed contractors like Petron Civil Engineering (P). Limited and Unity Infra-projects Limited. The efforts bore fruits in 2003, when the company was awarded multi-million projects by Mumbai Municipal Corporation, Gujarat Water Supply & Sewerage Board, and Delhi Jal Board, along with other Governmental Agencies. It was during this period that the company also expanded the segments of operation by entering and receiving work orders for intra-city road projects. Though, it saw opportunity in NHAI, it consciously decided to abstain from bidding in view of the heavy capital intensive nature of these projects. It maintained its presence in mass-housing & allied construction activities by building modern age railway stations, plant buildings and residential complexes on pure contractual basis.

By 2005, the company had established an inherent expertise in design, construction, operation & maintenance of reasonably sized complex water supply projects, water treatment plants and distribution systems, as also in the other segments in which it was operating. It was realized that there was shift in the government mindset and certain other project implementing agencies and there was determined focus to promote projects on PPP (Public Private Partnership) basis. Though the company was executing midsized projects on annuity & deferred payment models, the then net-worth and accessibility to debt funds was limited and could prove to be detrimental to the Company’s future growth. There were two paths available – either to maintain the then existing status and subsequently to act as a sub-contractor to bigger contractors or to strengthen its financial position in quest for a place amongst the top construction companies. The Management of the company opted for the latter. It was decided to approach the capital market to raise requisite funds through dilution of 30% of the company’s existing equity base. The company’s maiden issue hit the market in the first quarter of 2006 and received overwhelming response and was subscribed by over 24 times. The funds raised from the IPO were to be deployed for long term working capital requirements, equity funding for BOOT / PPP projects and setting up of an API accredited spiral pipe manufacturing plant. The company’s initial and established success in the water segment, due to the availability of proper back up, strengthened the belief that back up of an API accredited pipe manufacturing unit would add as a fillip to its future plans of foray into the lucrative oil and gas pipe transmission EPC projects.

In 2007 & 2008 Pratibha Industries strengthened its Buildings Division and bagged many unique and the best Buildings in India. Building Divison has been working with the top most clients and the most renowned Architects and Consultants. Today Pratibha Group has specialised themselves with methodology and the concept of Tall buildings. As on date Pratibha Industries are constructing more than 6 skyscrapers in Mumbai and one of them being the tallest Structural steel commercial building in India with a height more than 195 Mts.

In 2009 the company has set up its PPP Division (Public Private Partnership). “The Public-Private Partnership (PPP) Project would be a project based on contract or concession agreement between a Government or statutory entity on the one side and a private sector company on the other side, for delivering an infrastructure service on payment of user charges.”

The company is dedicated and committed to providing the society at large with quality infrastructure in its field of expertise which currently include design, engineering and execution/construction of complex & integrated water transmission & distribution projects, water treatment plants, elevated and underground reservoirs, mass housing projects, commercial complexes, pre-cast design & construction, road construction and real estate.

BUSINESS AREA OF THE COMPANY INCLUDES

Infrastructure
Helical Saw Pipes & Coatings

ACHIEVEMENTS/ RECOGNITION

Quality Accreditations-ISO 9001.

Appreciation Certificates from

SMERA-SME Rating Agency of India Ltd.
Latur Nagar Parishad
CIDCO
Indian Railway Welfare Organisation (WZ)CIDCO

FUTURE PLANS

The company over the next few years (2010-2011) on standalone basis or through Joint Ventures, strategic alliances & acquisitions (if a suitable opportunity arises) proposes to have strong presence in road, retail, urban, oil and gas transmission and power segments of the infrastructure sector, apart from water supply segment. It also proposes to be global player in pipe segment and market spill over capacities after accounting for in-house consumption. The said projects will be executed on both, EPC & PPP basis.

FINANCIAL PERFORMANCE

PARTICULARS	DEC-2010	SEP-2010	JUN-2010	MAR-2010
Revenue	275.26	245.72	306.49	271.92
Other Income	--	--	0.10	--
Total Income	275.26	245.72	306.58	271.92
Expenditure	-233.06	-208.62	-266.35	-225.85
Interest	-19.50	-14.41	-15.02	-14.11
PBDT	22.70	22.69	25.21	31.95
Depreciation	-3.68	-3.59	-3.37	-3.04
PBT	19.02	19.10	21.84	28.92
Tax	-4.85	-5.49	-5.60	-7.99
Net Profit	14.17	13.61	16.25	20.92
Equity	19.88	16.69	16.69	16.69
EPS	1.62	1.63	9.74	12.54
CEPS	1.80	2.06	11.76	14.36
OPM %	15.33	15.10	13.13	16.94
NPM %	5.15	5.54	5.30	7.69

KEY FINANCIAL RATIO

PARTICULARS	MAR-2010	MAR-2009	MAR-2008	MAR-2007	MAR-2006
Debt-Equity Ratio	1.54	1.05	0.72	1.40	0.56
Current Ratio	2.36	2.22	1.44	4.00	2.45
Fixed Assets	4.15	5.86	7.80	14.73	12.33
Inventory	3.98	4.51	5.36	10.21	5.49
Debtors	5.96	7.54	4.23	2.93	3.91
Interest Cover	2.41	2.46	2.88	2.71	3.02
PBIDTM (%)	15.16	13.18	13.60	13.03	13.48
CPM (%)	7.21	6.76	7.93	7.30	8.25
ROCE (%)	22.58	23.92	22.54	21.38	25.10

CONCLUSION

On quarter on quarter company has report strong number both in top line as well as bottom line. Revenue grew from 245.72 Cr to 275.26 Cr and net profit grew from 13.61 Cr to 14.17 Cr. We expect company to post strong numbers in coming quarters and on back of that recommend to accumulate the stock at current market price with a time horizon of twelve months for a target price of Rs. 88.

Buy ANSAL PROPERTIES & INFRASTRUCTURE LTD

2011-03-31T08:28:00.001-07:00

Buy at Rs. 37.50 Target at Rs. 49

INTRODUCTION

Ansal Properties & Infrastructure (API) incorporated in the year 1967 was vision of Shri Surendra Kumar Saigal and Late Lala Chiranjiv Lal Ansal.

Its business activities include property development for commercial, housing, retail, hospitality, IT SEZ, IT parks and Industrial parks.

Its client list includes big companies like Apple, Big Bazar, Cadbury, KFC, Mc Donalds, Deutsche Bank, Pizza Hut, Reliance Infocom, Walt Disney Sahara Airlines are amongst others.

BUSINESS AREAS

Commercial- It has developed many real estate projects such as Aerodrome (Amritsar), Galary Court (Panipat), Times Square (Gurgoan), Sushant Plaza (Jaipur) etc.

Housing- Under this, it has successfully developed housing properties namely Valley View Estate (Gurgaon), Aquapolis (Ghaziabad), Sushant Taj City (Agra) etc.

Retail- In this segment it has constructed properties and has built various shopping complex such as The Boulevard, Courtyard, Ansal Plaza and many others.

It has also developed Industrial Park like Pioneer, Hotel like Palms and IT parks like Netcity and The Campus.

In International markets it has successfully developed project in Bangkok, Iraq, Thailand, Russia and Bangladesh.

OUTLOOK

API has launched ‘Megapolis’ is India’s largest green hi-tech park located in Greater Noida spread across 2500 acres of land. The project cost is Rs.13000 crore.

OPPORTUNITIES

The Real Estate Sector in India has assumed growing importance with the globalization of the economy. Developments in the real estate sector as a whole are being driven by demand for:

i. Due to growing urbanization of Indian population, easy availability of housing finance at cheaper rates and tax incentives more housing units in cities and towns;

ii. shopping malls and commercial space by growing retail segment;

iii. commercial space by rapidly growing entertainment and hospitality sectors;

iv. office premises by growing IT/ITES;

v. hotels/resorts by growing tourism industry and international sporting events;

vi. better infrastructure by the growing Indian Economy through all its sectors; and

vii. SEZs by various sectors.

THREATS

Following one or more of the perceived threats could negatively affect the business of the Company:> The ability to sell the Company's products will be adversely affected by the availability of finances at reasonable cost to potential customers, especially buyers of residential properties.

i. Delay in payment of installments by the customers may result in delay in completion of the project and consequent legal hassles.

ii. Fluctuations in market conditions may affect capacity of the Company to sell projects at expected prices, which could unfavorably affect our revenues and earnings.

iii. The growth of the Company requires further capital, which may not be available on terms acceptable to it.

iv. Covenants with institutional lenders and other contractual commitments may restrict operations and ability to expand which may hurt the business and results of operations and financial condition.

v. Considerable increases in prices or shortage of building materials could harm the Company's delivery schedules, results of operations and financial condition.

vi. The projects in the real estate business involve purchasing small parcels of lands within a large area and failure to purchase any strategically located parcels may lead to failure of the entire project.

vii. Potential limitations on the supply of land could reduce revenues of the Company or negatively impact the results of its operations.

viii. Sanctioning process through the authorities is sluggish and time consuming.

ix. The business is subject to extensive statutory or governmental regulations.

x. Change in the business policies of the Government.

xi. The Company undertakes projects jointly with third parties, which involve certain risks of third parties slowing down the speed of implementation and abandoning the projects mid way.

xi. The Company is reliant on its directors and senior management team and the loss of key members or failure to attract skilled personnel may adversely affect the business.

xii. The Company conducts due diligence and assessment exercises prior to undertaking a project, but may not be able to assess or identify certain risks and liabilities.

xiii. Work stoppages and other labour problems could adversely affect the business.

xiv. The Company is dependent on various sub-contractors or specialist agencies to construct and develop projects.

STRATEGIES

The key elements of the Company's business strategy are as follows:

i. Continue to focus on affordable housing projects that have lower capital costs, shorter development periods, high demand, and for which commercial financing is readily available.

ii. Consolidate the Company's position in the real estate industry across northern India.

iii. Pursue a balanced mix of land acquisition strategies to lower the average acquisition costs.

iv. Enhance execution capabilities.

v. Attract and retain senior managerial personnel.

RISKS & CONCERNS:

Reward doesn't come without risk. Those who succeed embrace risk and master it. In any dynamic organization risk is everywhere - so is opportunity. To manage that risk and seize opportunity requires a sophisticated, systematic and comprehensive process that must be aligned with Company strategy and daily operations.

The Company's risk management practices, seek to sustain and enhance long-term competitive advantage of the Company. Risk management is integral to the Organization. Your Company's core values provide the platform for risk management practices. The following are the broad categories of risks identified by the Company:

i. Operational Risks

ii. Strategic Risks

iii. External Risks

iv. Finance Risks

v. Legal/ Compliance Risks

vi. Counterparty Risks

vii. Information Technology Risks

viii. Price risk

ix. Demand risk

FINANCIAL PERFORMANCE

PARTICULARS	DEC-2010	SEP-2010	JUN-2010	DEC-2009
Revenue	278.29	274.98	221.61	204.49
Other Income	4.73	3.04	3.32	5.95
Total Income	283.02	278.02	224.93	210.44
Expenditure	-233.81	-230.68	-141.13	-147.40
Interest	-21.14	-22.05	-26.31	-31.21
PBDT	28.07	25.29	57.49	31.83
Depreciation	-2.32	-2.26	-2.04	-2.20
PBT	25.75	23.03	55.45	29.63
Tax	-9.50	-8.05	-18.64	-15.15
Net Profit	16.25	14.98	36.81	14.48
Equity	78.70	65.84	65.84	61.56
EPS	1.06	1.16	2.96	1.18
CEPS	1.18	1.31	2.95	1.35
OPM %	17.68	17.22	37.81	30.83
NPM %	5.84	5.45	16.61	7.08

KEY FINANCIAL RATIO

PARTICULARS	MAR-2010	MAR-2009	MAR-2008	MAR-2007	MAR-2006
Debt-Equity Ratio	1.11	1.05	0.78	0.26	0.72
Current Ratio	2.89	2.95	3.11	2.87	1.47
Fixed Assets	4.97	4.18	7.89	15.91	8.83
Inventory	0.40	0.47	1.05	1.81	0.95
Debtors	1.50	1.59	3.25	7.52	5.52
Interest Cover	1.33	1.24	2.81	5.12	5.25
PBIDTM (%)	52.81	53.28	43.17	34.36	26.55
CPM (%)	10.44	9.63	20.33	18.65	16.23
ROCE (%)	15.45	16.01	22.89	35.03	36.63

CONCLUSION

On quarter on quarter company has report strong number both in top line as well as bottom line. Revenue grew from 274.98 Cr to 278.29 Cr and net profit grew from 14.98 Cr to 16.25 Cr. We expect company to post strong numbers in coming quarters and on back of that recommend to accumulate the stock at current market price with a time horizon of twelve months for a target price of Rs. 49.

Source :- SIHL

Buy AMARA RAJA BATTERIES LTD.

2011-03-20T23:34:00.000-07:00

AMARA RAJA BATTERIES LTD.

Buy At 178.40 Target 232

INTRODUCTION

Amara Raja Batteries (ARBL) is engaged in manufacturing of industrial and automotive batteries. It was founded in 1985.

ARBL was first to introduce Valve Regulated Lead Acid (VRLA) batteries with three-year warranty in industrial and automotive applications. It was also first to introduce a 60-month warranty for automotive and two-wheeler batteries.

The company has pan India presence with network spread across 18,000 retail outlets, 2,000 service hubs and 400+ Power Zone retail outlets.

The company is largest and dominant market leader of standby batteries in Railways, Telecom, Power Generating stations in India. It is the largest manufacturer of stand VRLA batteries in South Asia.

ARBL owns one of the largest and most modern automotive battery plants in Asia with a producing capacity of 2.5million batteries per annum.

PRODUCTS

Industrial- Under this it manufactures and market two products namely Powerstack and Amaron Quanta. Powerstack is a high performance battery having wide range of industrial applications catering to segment like Telecommunications, Power Utilities, Railways, Defence and other heavy Industries. Amaron Quanta is a UPS battery.

Its clientele includes big names like BSNL, MTNL, Lucent, Alcatel, Siemens, Nokia, Ericsson, Alstom, Crompton Greaves, etc.

Automotive- It manufactures and market automotive batteries under the name Amaron. Under Amaron it has introduced products like Pro, Flo, Go, Black, Fresh, Hi-way, Harvest, Sheild, and Optima caters to various automobile needs.

The company exports automotive batteries to countries namely Singapore, Malaysia, Hong Kong, Thailand, Vietnam, Philippines, China, Japan, Greece, Australia, Dubai, Omen, Bahrain, UAE, Kenya, Tanzania, South Africa and many more.

The company has been supplier to big companies like Ashok Leyland, Fiat, General Motors, Hindustan Motors, Honda, Hyundai, Mahindra & Mahindra, Maruti and Tata Motors, Daimler Chrysler and Ford.

INDIAN BATTERY MARKET

The domestic storage battery market (organised sector) is estimated at about Rs. 65 billion at current lead prices, comprising industrial batteries (Rs. 32 billion) and automotive batteries (Rs. 33 billion) businesses. Moreover, the unorganised sector is estimated at Rs. 20-25 billion. The automotive battery business accounts for about 55% of sales value, while the industrial battery business accounts for the remaining 45%.

The automotive battery business can be further divided into the OEM and aftermarket sectors. Demand for automotive batteries largely depends on the growth of automobile OEMs and the aftermarket. During the year under review, the automotive batteries market grew about 30% in OEM and about 10% in the replacement market. The OEM and replacement markets are expected to experience about 18% growth in the segment OEM and 11% in the aftermarket segment in 2010-11.

The growth in the industrial batteries business is driven by infrastructure and technology-related industries such as telecommunications, UPS and power. VRLA technology caters to 75% of the industrial storage battery market. The ongoing slowdown in telecom impacted the offtake and price of VRLA batteries, after healthy growth in the recent three-four years. The market for UPS batteries is expected to grow about 10% in 201011, aided by a reviving momentum in the services sector and e-initiatives of the Government(s) of India.

AMARA RAJA BATTERIES LIMITED (ARBL) MANUFACTURES BATTERIES FOR AUTOMOBILE AND INDUSTRIAL APPLICATIONS, PROTECTED BY ISO:9001, QS9000 AND TS-16949 CERTIFICATIONS BY RWTUV, GERMANY. THE COMPANY'S FACILITIES ARE INTEGRATED ACROSS CRITICAL COMPONENTS AND PLASTICS.

BUSINESS OVERVIEW

The Automotive Batteries Unit commenced operations with technology from Johnson Controls Inc., joint venture partner and the world's largest manufacturer of automotive batteries. It pioneered the Valve Regulated Lead Acid (VRLA) technology in India's automotive battery segment, the key differentiator in an otherwise cluttered Indian automotive battery market. Based on the technology, the unit created an unmistakable brand recall:

Introduced the zero-maintenance automotive batteries for the first time in India

Pioneered the 60-month warranty battery for the first time in India's automotive battery space

The unit's revenue accrue primarily from the aftermarket segment, accounting for about 65% of sales volume while the balance is contributed by sales to OEMs and exports. ABD is a preferred supplier to automobile OEMs for diverse platforms with a 27% market share and enjoys a sizeable presence in the aftermarket segment (26% market share in the organised sector) through its own brands and private label programs like Bosch and Lucas. The Amaron' brand is well accepted in various countries across Indian Ocean Rim spanning Southeast Asia, the Middle-East, Asia and East Africa.

PRODUCTS AND APPLICATIONS

ABD caters to all segments of the automotive industry, ranging from passenger cars, MUVs, tractors and commercial vehicles (automotive batteries) to motorcycles and scooters (motorcycle batteries) - both self-start and kick-start. ABD offers an array of automotive batteries to OEMs and the aftermarket with warranties ranging from 12 to 60 months to suit diverse customer requirements.

Some key features that make Amaron' a preferred brand are long life, BIC vents for enhanced safety, highest cranking power and a 60-month warranty.

The PowerZone' brand provides customised batteries for rural applications. The brand also offers complete power solutions for automobiles and homes, making it a one-stop shop for all power needs - quality product at competitive prices.

DISTRIBUTION NETWORK

In 2009-10, the Amaron' network expanded to more than 200 franchisees and 18,000 retailers, and PowerZone' network to over 700 outlets. The Company launched Amaron' Pitstops in urban areas and PowerZone' outlets in semi-urban and rural areas. The Amaron' Pitstop format was ranked among the top franchising opportunities in India. The Company's unconventional marketing channel comprises auto mechanics, lube retailers and small shop-owners.

MILESTONES

Ø Witnessed a 20% growth in revenues and volume over 2008-09

Ø Launched second variant of motorcycle battery (Amaron Pro Bike Rider' Beta series) based on VRLA technology with a 48-month warranty in the aftermarket

Ø Expanded its network to 200 franchisees and over 18,000 retailers in Amaron' format

Ø Enhanced the presence of PowerZone' to over 700 outlets across semi-urban and rural locations

Ø Ranked among the top 100 franchise opportunities by 'The Franchising World' for Amaron' Business Model

Ø Received battery product approval for Ford's small car Figo and Escorts Ltd. for tractors

Ø Developed and commenced supplies to the first Indian micro hybrid vehicle (Scorpio) from Mahindra & Mahindra

Ø Completed the design and development of a micro hybrid programme for Tata Motors' Ace vehicle

Ø Entered into a development agreement with Honda, Japan, for motor cycle VRLA batteries

AWARDS

It manufacturing facilities have received ISO: 9001-2000 and ISO/TS 16949 certification from TUV NORD.

ARBL has received Ford Q1 Award and company was one of only 24 global companies to be awarded the Ford World Excellence Award.

The company received Automotive Product of the year 2000 by Overdrive

ROAD AHEAD, 2010-11

Ø Enhance manufacturing capacities, both in automotive and motorcycle battery plants, by 20% and 100%

Ø Invest in low-cost automation, enhancing productivity and quality

Ø Extend reach and improve brand visibility

FINANCIAL PERFORMANCE

(Rs in Cr)

PARTICULARS	Dec 2010	Sep 2010	Jun 2010	Mar 2010
Revenue	425.51	392.47	446.74	433.29
Other Income	1.62	1.57	0.90	0.60
Total Income	427.14	394.04	447.64	433.90
Expenditure	-357.44	-335.89	-383.60	-366.86
Interest	-0.27	-0.43	-0.43	-0.58
PBDT	69.42	57.71	63.61	66.46
Depreciation	-10.48	-10.51	-10.26	-10.43
PBT	58.94	47.20	53.35	56.03
Tax	-19.29	-15.60	-17.62	-19.33
Net Profit	39.65	31.60	35.73	36.70
Equity	17.08	17.08	17.08	17.08
EPS	4.64	3.70	4.18	4.30
CEPS	5.87	4.93	5.38	5.52
OPM %	16.38	14.82	14.34	15.47
NPM %	9.32	8.05	8.00	8.47

KEY FINANCIAL RATIO

PARTICULARS	MAR-2010	MAR-2009	MAR-2008	MAR-2007	MAR-2006
Debt-Equity Ratio	0.17	0.70	0.95	0.58	0.20
Current Ratio	3.81	4.62	5.82	4.76	3.38
Fixed Assets	3.68	4.28	4.75	3.32	2.49
Inventory	8.94	8.89	9.42	9.98	8.80
Debtors	7.51	7.27	7.25	6.43	5.92
Interest Cover	33.16	7.10	11.12	16.04	14.19
PBIDTM (%)	18.07	11.23	13.69	12.47	12.31
CPM (%)	12.42	7.28	8.80	8.60	8.65
ROCE (%)	39.59	21.29	31.03	24.25	18.02

CONCLUSION

On quarter on quarter company has report strong number both in top line as well as bottom line. Revenue grew from 392.47 Cr to 425.51 Cr and net profit grew from 31.60 Cr to 39.65 Cr. We expect company to post strong numbers in coming quarters and on back of that recommend to accumulate the stock at current market price with a time horizon of twelve months for a target price of Rs. 232.

Source : - SIHL

Buy ELECON ENGINEERING CO.LTD.

2011-03-16T09:15:00.001-07:00

Buy at Rs 66.60 Target at Rs 87

INTRODUCTION

Elecon Engineering Company, founded in 1951, is engaged in delivering power transmission solutions and material handling equipment. The company caters to the needs of various sectors like steel, fertilisers, cement, coal, lignite and iron ore mines, sugar, power stations and port mechanization in India and abroad. It has emerged as the largest gear manufacturing company in Asia.

Headquartered in India, company has offices located in countries namely Singapore, South Africa and Dubai. Elecon has formed EMTICI Engineering -- a marketing and servicing company for Elecon products in India. The company has network of 90 dealers and 30 resident engineers. The company’s material handling equipment plant is spread over on an area of 1,17,000 sq.mt, and is located at Vallabh Vidyanagar.

DIVISIONS

Power Transmission solutions- This division of company design and manufactures worm gears, parallel shaft and right angle shaft, helical and spiral bevel helical gears, fluid, geared and flexible couplings and planetary gear boxes. These products are supplied to sectors such as sugar, cement, chemical, fertilizer, steel, plastic extrusion and rubber. The company has received ISO 9001:2000 certification for its quality management.

Material handling equipments- Under this, the company manufactures products such as belt conveyors, stacker-cum-reclaimers, pusher cars, idlers and pulleys, barrel type blender reclaimers, ship loaders and unloaders, stacker, bridge type bucket wheel reclaimers, crawwler mounted bucket wheel excavators, wagon tipplers and side arm chargers, crushers and feeders. This division caters the need of various industries such as steel, fertilizer, cement, coal, lignite and iron are mines, power stations and port mechnisation in India and abroad.

Wind Power- Elecon manufactures wind turbines of 300 KW and 600 KW capacity at the unit located at Vallabh Vidynagar in Gujarat. The company has entered into technical collaboration with Turbowind of Belgium with an aim to manufacture quality wind turbines.

OPPORTUNITIES AND THREATS

Global economy has stabilized and entering a period of weak growth. The impact of the financial turmoil resulted in registering negative growth rates by most developed countries ' for successive quarters in 2008-09. Central Governments and: Central Banks around the world took unprecedented actions like expanding Government balance sheet significantly to stimulate demand, sharply reducing interest rates to near zero levels, which flooded the market with liquidity to ride over the turmoil. These radical measures have helped recovery across the globe.

Particularly, India has been gaining prominence in the investment plans of most global investors. The growth rate in India has been far better than other emerging economies primarily due to higher reliance on domestic demand for growth. Exports constitute only 20% of the total GDP of the country and slowdown in export is unlikely to derail the economy from the growth path.

Infrastructure is likely to be one of the key growth drivers for Indian economy. Government aims to increase the infrastructure spending to 9% of the GDP by FY12 compared to 5.5% at present.The spending on the infrastructure is likely to benefit the revenue and earnings growth of many related sectors. As your Company caters to infrastructure projects also, this would be one of the growth engines of the future of your Company.

Opportunity in the infrastructure sector is huge and with Government's clear focus on the sector, there will be huge order flows in coming years.

SEGMENT-WISE PERFORMANCE

During the financial year 2009-2010, the Company has achieved a Turnover of Rs. 104637.05 Lacs as against Rs. 95506.48 Lacs in the previous year, which shows a growth of 9.56% over the previous year.

The Turnover of Gear Division has increased to Rs. 42592.05 Lacs from Rs. 39439.60 Lacs in the previous year, which shows an increase of 8%.

The Turnover of MHE Division has increased to Rs. 62045.00 Lacs as against Rs. 56066.88 Lacs in the previous year, which shows an increase of 10.66%.

The Profit Before Tax has increased to Rs. 9031.70 Lacs from Rs. 8810.03 Lacs in the previous year resulting into an increase of 2.52 %.

The Profit After Tax has increased to Rs. 6617.53 Lacs from Rs. 5745.12 Lacs, resulting into an increase of 15.19%, over the previous year.

OUTLOOK

While the world seems to have returned on the growth path after experiencing huge turmoil, the recovery is primarily driven by the stimulus by Central Bank and Governments across the world. India is not an exception to this. The sustainability of the recovery will only be known as and when the stimulus is withdrawn. However, in India, Central Government is expected to continue with its stimulus plans for some more time.

Global economic collapse, together with liquidity squeeze had forced corporates to either scale back their capex plans or at least defer them. With revival in demand, increased availability of finance through both debt and equity route and improved business confidence, these deferred capex plans will gain traction and materialize, which in turn will result in resumption of various projects by our big clients.

Power is likely to lead the infrastructure cycle. To contain the peaking shortages and to meet the incremental demand, the Central Electricity Authority (CEA) has targeted a capacity addition of 1,00,000 MW in the Xllth Five Year Plan, a growth of 27%. Due to encouragement from Government, private sector capex in power will improve in the coming years. Your Company's MHE Div. supplies majority of its products to Power Sector, this will help your Company to maintain its business.

The Indian economy will continue its growth trajectory on the back of strong domestic demand and huge outlay on infrastructure planned by the Government.

With the recovery in corporate capex cycle and Government's increased focus on infrastructure, the sector will grow at a rapid pace in coming years. This will definitely help your Company in developing its business in this sector.

FUTURE PLANS

Elecon Engineering Company will diversify in various businesses in order to widen its product portfolio.

MILESTONES

1951- The company was incorporated.
1975-1985- The company collaborated with WGW (TGW) Thyssen Getribe Works for manufacturing of Sprial Bevel and Helical Gearboxes.
1985-1992- The company collaborated with Renk AG, Germany for high speed gearboxes, bucket wheel and slewing planetary gearboxes, marine gearboxes and vertical roller mill gearboxes.
1992- Elecon Emgineering formed a tie up with Renk AG, Germany on project to project basis. It also collaborated with SIME France for Hydrokinetic Fluid Couplings from for various sizes up to CDR / CDRP 870.
1999-2002- It collaborated with PIV, Germany for Posired-II-Sprial Bevel and Heli-Bevel drives gearboxes.
1998- It developed Lift Gear Box-TM 500 Model for Kinetic Transportation Products.
1999- Elecon produced Lift Gear Box-G140 Model for Bharat Bijlee.
2000- Elecon Engineering developed Lift Traction Machine-W140 Model for Schindler India.
2003- The company developed Elevator Traction Machine Model - L127.
2004- It developed Elevator Traction Machine Model - L163.
2005- The company developed Elevator Traction Machine Model - L115.
2007- The company collaborated with Renk AG, Germany for Vertical Roller Mill Gearboxes, KPAV type upto size 200 and output torque 1040 KNM.
2008- The company collaborated with Haisung Industrial System Co., South Korea
CONCLUSION
Company has reported strong numbers for the quarter ended December 2010. On quarter on quarter basis revenue grew by % from 280.91 Cr to 302.39 Cr and Net profit grew by % from 14.21 Cr to 36.82 Cr. We expect company to deliver strong numbers in coming quarters both in top line as well as in bottom line. We recommend to accumulate the stock at current market price with a target of Rs. 87 With a time horizon of twelve months.

Buy SUNIL HI TECH ENGINEERS LTD.

2011-03-06T00:06:00.001-08:00

Buy at Rs. 113.25 Target at Rs. 147.00

INTRODUCTION

Sunil Hitech Engineering was incorporated on May 29, 1998 with an objective to engage in the business of fabrication, erection and commissioning related works required for power plants. Sunil Hitech was formed by taking over of proprietorship concern of Sunil Engineering Works (SEW) with Ratnakar M Gutte as a proprietor, which was in existence since 1984. The company was converted into Sunil Hitech Engineers ltd. on 18th August 2005.

The company is engaged in the niche segment of Fabrication, Erection & Testing and Commissioning of Bunkers, ESPs, Boilers, TG sets in the Power Plants, both in Private & Public sector. SHEL is amongst very few companies which are tightly focused in the ever-growing Power Sector, for the last two decades.

The turning point for this toddling company with sales worth Rs 50-60 lakh per annum came in ’94, when BHEL awarded it a contract worth Rs 2.7 crore. At that time, the company did not own proper machinery or equipments to handle such a big project.

However, special permissions were obtained and BHEL itself provided necessary equipments. SEW completed the work before time, in 18 months, whereas the time-frame was 24 months. The quality work provided by the SEW established fresh credentials for the company. It started getting contracts from areas like Vindhyachal, Suratgarh, Panipat and Khapadkheda. Thus SEW started on its big journey. After that, there was no looking back either for the company or for R Gutte.

The company was converted to Private Limited from proprietorship in 1998. A major achievement of SEW was to obtain ISO 9001:2000 certification. There were not many companies bothered about certifications at that time. Being a methodical person, Gutte wanted to establish order in every sector of his company. He wanted to ensure flawless administration and meticulous documentation. Most of the documentation was done in line with BHEL which was responsible towards guiding SEW in many sectors. The same year, the company touched a sales high of Rs 11 crore.

The period of 2001-2004 was toughest for the infrastructure industry. But, against all odds, Sunil Engineering Works not only survived, but also recorded a growth of 3.4 times touching total sales of Rs 35 crore in six years till 2004. The company reached its second landmark in ’04 when it was commissioned directly by the National Thermal Power Corporation (NTPC). The contract was for a work worth Rs 35 crore. Being associated with India’s largest power producing company which the world’s third largest brought recognition for the company.

In 2005, Sunil Hitech Engineers was incorporated. Construction of new office building started in 2005. It was when Sunil Gutte thought of making the company a public limited. He went to Mumbai and got valuations which finally convinced the CMD and the CEO. Sunil Hitech became a BSE and NSE listed company. In fact, SEW was the first company to go for the listing in Nagpur after a break of 16 years.

With the money generated through the public listing, Sunil Hitech procured equipments and machinery needed for smooth conduction of works. Simultaneously, the company repaid previous bank loans and became a brand. From a private limited company, which is considered to be a ‘risky company’, Sunil Hitech became Public Limited, a risk-taking company. As the company grew in image and stature, it planned to diversify. A factory was set up and it got into transmission and distribution in association with Pampattiwar. SHEL also started undertaking jobs from steel plants.

PRODUCTS AND SERVICES OFFERED BY THE COMPANY:

Thermal Power Plants

Fabrication & Erection of Heavy / Super Structures up to 660MW
Fabrication and Erection of Chimney flues.
Civil works for Power Station upto 500MW, Staff Bldg/Colony, Water treatment, Effluent Plant, Water Drainage System, Control buildings, Construction of Roads.
Erection of Boiler and auxiliaries’ upto 500MW, ESPs upto 660MW
Structural Fabrication and erection of coal & ash handling system
Piping Work for CW, LP/HP, Ash Slurry and Ash Disposal, LD, DM & Critical Piping
EPC for Sugar Plant with Co-gen power project.
Turnkey contract for Fuel Oil Handling System
Turnkey Contract for Coal Handling Plant & Lignite Storage Shed.

Hydro Power Plants:

Civil works
Hydro-Mechanical works
Radial Gates, Vertical Gates and Fabrication of Pen Stock

Steel- Structural Steel works for:

Castor Shop
Steel Melt Shop
Blast Oxygen Furnace
Sinter Plant
Continuous Casting Shop
Universal Beam Mill & Bar & Rod Mill
Universal Rail Mill
Technological Structure

SUBSIDIARIES

Sunil HiTech Engineers & Manufacturers Pvt. Ltd. is a sister concern to M/s. Sunil HiTech Engineers Limited, a company established in 1984 mainly to cater to the needs of undertaking fabrication and erection related works required for Power Plant Construction & having a strong Customer base like National Thermal Power Corp.Ltd., Bharat Heavy Electrical Limited , Reliance Energy Ltd.,(REL), SEPCO, HIL, Skoda export and State Electricity Boards throughout India.

SHEM is a 85% subsidiary and manufacturing arm of SUNIL HITECH ENGINEERS LTD. The well known turnkey contracting company is promoted by Ratnakar M Gutte, Director. A team of dedicated engineers and technocrats ably assisted by administration and finance professionals are working round the clock to achieve the specified targets and goals.

Gangakhed Sugar & Energy Pvt is a sister concern to Sunil HiTech Engineers Limited. The project is being developed as an Integrated Cane Processing Plant (ICPP) with a Diversified Product Portfolio and a De-risked Business model, using the state of Art Technology. The Integrated Project is aimed at utilising sugar cane to its full potential including all of its by-products such as bagasse, molasses, press mud and water. This will not only insulate the Project from any cyclical variation of sugar industry but will also ensure the high and consistent returns for sugar cane to the farmers in the region.

OUTLOOK FOR SUNIL HITECH ENGINEERS LTD

India established itself as one of the world"s fastest growing economies - this fact has been attracting many investors, from India as well as across the world. However, the financial meltdown and consequent economic slowdown made its impact last year to some extent in India. The government stepped up fiscal stimulus last year, thus India is now on the tract of growth. Projects that were delayed last year were slowly resumed this year, which helped the sector to gain needed stability. Overall the business sentiment was very positive and investments in power sector is increasing, which would give boost to the order book of SHEL and thus the growth trajectory continues.

We are focused on power sector, but looking at the stupendous investment that is being planned in infrastructure like roads and bridges, among others, SHEL does not want to be left out of the stream, and would be thinking positively in the direction of adding one more sector in the portfolio.

INTERNAL CONTROL SYSTEMS

The internal audit is done in house, by the internal audit department, independently and objectively evaluating, and reporting on SHEL's financial reporting integrity, the effectiveness of risk management and internal control systems and the adherence to SHEL'S compliance policies in a systematic and disciplined manner.

To deliver on its profile, the internal audit department develops a flexible audit plan for SHEL and its subsidiary companies using an appropriate risk-based methodology and considering the work performed by SHEL'S other control and monitoring functions and external auditors, to provide optimal audit coverage at a reasonable overall cost. The audit plan is submitted to the Audit Committee of SHEL for review and concurrences at least annually. The results from the audit are reported to the Audit Committee on a quarterly basis.

CONCLUSION

Company has reported strong numbers both in top line as well as bottom line as well. Revenue on quarter on quarter basis grew by 35% from 150.01 Cr to 202.52 Cr and net profit grew by whopping 169.65% from 3.69 Cr to 9.95 Cr. We expect company to post much stronger results in coming quarters and on back of that recommend to accumulate the stock at current market price with a target of Rs. 147 with a time horizon of twelve months.

Buy HSIL LTD.

2011-02-21T03:20:00.000-08:00

Buy at Rs. 125.85 Target at Rs. 164

INTRODUCTION

HSIL stands tall with strong market leadership in the building products market, and a dominant player in the container glass segment. The building product commands more than 38% of the market in the sanitary ware industry, while the container glass is the second largest player in India. While HSIL predominantly caters to the Indian market, in this era of globalization, both the Building Products Division and the Container Glass Division have expanded their horizons to cater to the international market as well.

HSIL is recognized among the top 300 companies in India, while rated amongst the best 100 small and medium sized companies in the world by the Forbes Magazine.

With its recent foray into the retail of home interior solutions, the company has extended their outreach to the end-customer. EVOK, their retail brand specializes in providing a comfortable and convenient one-stop shopping experience, currently located in NCR, upon consolidating our hold within North India, EVOK plans to become the household name across urban India for value-for-money home interior solutions.

SOME INTERESTING FACTS • Hindware' brand has been recognized as a Super brand consecutively for the last four years. • Hindware manufactures ten sanitary ware pieces every two minutes; 310 every hour and 2.7 million each year.• Possesses the largest distribution network in India's building products industry.• AGI Glasspac has a capacity to produce 953 million bottles per annum and the capability to manufacture 400 different products in three colours.

PRODUCTS OF THE COMPANY INCLUDE

• Sanitaryare• Faucets• Wellness Product• Kitchen Appliances

AWARDS AND RECOGNITION

• Golden Peacock Awards• Selected Business Superbrand India 2008• Elle Deco International Design Award for Best Product Design• Reader's Digest Trusted Brand• Mera Brand • Most Admired 100 Companies• P's B & M India's 100 Most Valuable Awards

MANUFACTURING FACILITY

A tour of Hindware manufacturing process makes evident the utmost emphasis on quality. From raw materials to the actual products, there is an adherence to highest standards. Hindware has one of the world’s best vertically integrated manufacturing facilities, where vital raw materials and consumables are produced and upgraded in captive units, thereby ensuring superior quality and on time availability.

Research, Development and Design Centre

Great designs in the best of bathrooms are produced at Hindware Design Centres.

•These designs are first prepared on the latest CAD software.

•Based on this, a plaster model is created.

•Then, renowned designers test these designs.

•The final design is taken up for commercial production.

Hindware R&D Department is the first and the only one in the Sanitaryware Industry to be recognized by the Ministry of Science and Technology, Government of India. At Hindware R & D department, latest testing equipment is used and our constant endeavour is to enhance and improve the manufacturing processes.

The Production Process

•All raw materials are tested.

•The X-ray particle analyzer tests the particle size of different clays in terms of their behaviour during the production process.

•The Temperature Gradient Furnace helps to understand the effect of different temperature zones on the colours of products.

•And similarly, the Simultaneous Thermal Analyser helps to analyze the behaviour of clay; the body of the product; and the Glaze at different temperature zones over time.

Slip Preparation and Casting

Hindware plant is the only one in India that uses a completely automated system to process raw materials.

To start with, the Slip (which is used for casting) is prepared by crushing and blending various types of clays in a completely automated way. Hindware also employs an environment controlled, battery casting shop to ensure that each piece meets its stringent quality norms.

In fact, Hindware was the first in India to use battery casting technology, wherein, the casted pieces are dried in an automated dryer, where water content is reduced to less than 1%.

Glazing

At Hindware plant, high-voltage, electrostatic automatic glazing technology is used for its products.

The Glaze is prepared using stains imported from developed countries. This ensures that products retain their gloss and shine for years. No wonder, Hindware products are known for their beauty and sustainability.

Firing

After the glazed product is fired in the tunnel kiln, the final product is obtained. Here again, Hindware was the first company in India to use the computer-controlled, open fired, tunnel-kiln technology.

Inspection and Testing

Finished products are thoroughly tested before they are packed. They go through different quality tests to meet Hindware stringent quality standards.

STRENGTHS

Ø Industry leader with 40% share in the domestic organised sanitaryware market

Ø Diversified presence across sanitaryware, faucets, kitchen appliances, wellness products and most recently ceramic tiles

Ø Low-cost producer, possessing backward integrated plants in Haryana and Andhra Pradesh

Ø Extensive product portfolio across each of the product categories

Ø Largest dealer and distribution network within the building products industry in India

Ø Significant revenue growth over a long period

Ø Strong retail presence

Ø International strategic alliances with globally renowned brands - Keramag & Teuco.

Ø Strong brand value, with multi-tiered niche brands as part of the Hindware Brand Portfolio

Ø Pioneer to establish a service division called Hindware Care with guaranteed response in 48 hours

Ø Among three in the world to have the technology to make vacuum operated ceramic toilets used in ships

CHALLENGES

Ø Production of high and premium value products

Ø Strive to further improve quality and efficiency to match international standards

Ø Drive innovation and increase pace of new product introductions

Ø Enhance employee motivation and loyalty

OPPORTUNITIES

Ø Enhance the contribution of premium products for the sanitaryware and faucet businesses

Ø Tap international markets

Ø Augment institutional sales

Ø Acquire overseas and domestic companies with good manufacturing facilities and brands to grow inorganically

Ø Increase production capacity and geographical penetration by enhancing supply chain

Ø Introduce other product categories as part of the Hindware brand.

THREATS

Ø Rising competition and entry of new players, including MNCs

Ø Rise in fuel cost

CONCLUSION :

On quarter on quarter basis company has report strong growth both in top line as well as in bottom line as well. Revenue has gone up from 221.99 Cr to 281.24 Cr where as profit has gone up from 13.93 Cr to 27.58 Cr. Going forward on back of such a strong umbers we are expecting company to deliver much better growth both in top line as well as in bottom line. We recommend to accumulate the stock at current market price with a target of 164 with a time horizon of twelve months.

Buy SUZLON ENERGY LIMITED

2011-02-15T05:15:00.001-08:00

Buy at Rs. 45.75 Target at Rs. 60

INTRODUCTION

The seeds of Suzlon were sown by Mr. Tulsi R. Tanti’s venture into the textile industry. Faced with soaring power costs and the infrequent availability of power, he looked to wind energy as an alternative. Beginning with a wind farm project in the Indian state of Gujarat in 1995, with a capacity of just 3 MW - he set forth to acquire the basic technology and varied expertise to set up Suzlon Energy Limited - India’s first home-grown wind technology company.

Conceived in 1995 with just 20 people, Suzlon is now a leading wind power company with:

Over 16,000 people in 25 countries
Operations across the Americas, Asia, Australia and Europe
Fully integrated supply chain with manufacturing facilities in three continents
Sophisticated R&D capabilities in Belgium, Denmark, Germany, India and The Netherlands
Market leader in Asia, Suzlon Market Share (Combined with REpower) rose to 9.8% thereby making Suzlon 3^rd , largest wind turbine manufacturing company in the world

Suzlon as a group aims to provide a strong renewable energy platform thereby promising to power a greener tomorrow, today. Together with its subsidiary REpower, Suzlon has grown to be the 3rd largest wind turbine supplier in the world ensuring it builds a strong and futuristic path for the wind energy sector. From initiating a wind power project, till completion and even beyond, Suzlon ensures that nothing stands in the way of it serving its purpose. This is with the support of its key differentiators, it is the very philosophy of questioning ourselves at every step that has helped us sustain our vision. Our approach, insight, objectives and our reports stand testimony to that.\

GLOBAL SCENARIO

Global electricity consumption is expected to increase by 47% by the year 2015, accelerated by developing countries and as more and more people are able to enjoy a higher standard of living. It is estimated that by 2015 we will be confronted with a new generation capacity requirement of all most 1271 GW. Pushed to the limited cost of conventional energy will inevitable rise while concerns surrounding oil and gas availability add to uncertainty.

The international energy agency (IEA) in its world energy out look 2007 estimates that the worlds energy need would be well over 50% higher in 2030 than today. China and India together account for 45%of the increase in global primary energy demand in this scenario. Both countries energy use is set to more than double between 205 and 2030. The IEA estimates that this would require cumulative investment of approximately US $20 trillion between 2005 and 2030 and more than half of this energy investment will be required by developing countries alone.

Today wind energy has unquestionable emerged as the second largest renewable energy souce behind hydro-electric power. It is currently being harnessed by all most 70 countries of which 19 countries have already installed more than 100 MW each in 2007.insatlled win denergy had touched 94 GW in the same year. By 2016 this is expected to touch a phenomenal 455 GW. It is estimated that the world wind market place will continue to grow at over 20% till past 2012.

GLOBAL WIND ENERGY MARKET POTENTIAL

wind power installation are heavily concentrated in Europe, the united states, India and China which accounted for about 93% of cumulative installed capacity by the end of 2007. The cumulative installed capacity for wind power is expected to grow from over 122000 MW in 2007 to 287940 MW by 2012, representing an average growth rate for cumulative installation of over 20 % PA. The penetration of wind power in the world wide generation of electricity has increased to over 1% in 2007 and projections indicate that a decade ahead wind will provide 6% of global electricity production.

In specific area of the world, electricity from wind energy has grown significantly. In den mark wind energy meets around 20% of the country’s electricity consumption. In several German states the penetration of wind electricity exceeds 25% and for Europe over all the penetration of wind has reached to around 3.5%

INDIAN WIND ENERGY DEMAND

Wind power in India came to life in 1983-84. From the program’s inception the GOI has promoted a market oriented strategy which has led to commercial development of technology. The 6 broad based national program includes wind resources assessment activities, research and development support, implementation of demonstration projects to create awareness, opening up of new sites, involvement of utilities and industry, growth of infrastructure capability and capacity for manufacture, installation, operation and maintenance of WTGs and policy support.

India is perhaps the only country in the world to have an exclusive ministry for non conventional and renewable energy (MNRE). The key function of MNRE includes :

è Policy making and planning

è Program formulation and implementation

è Research and development

è Technology development and commercialization

è Promotion of demonstration and pilot projects

è Implementation of fiscal and financial incentives

The MNRE through the center for wind energy technology has an autonomous scientific research body which carries out wind resources assessment studies, pursuant to which it has revised its estimates for grows wind power potential in India upwards from 20000 MW to 45000 MW assuming land availability at 1% in potential areas for wind power generation.

MNRE has also been working with the various state governments as a result of which states with wind power potential have introduced policies pertaining to power purchase, wheeling and banking to provide a frame work for investment in wind power.

Recent regulatory enactments in India future support the absorption of renewable in the energy mix. The electricity act of 2003 requires all state level energy regulatory commission’s to ensure that electricity distributors procure a specified minimum percentage of power generation from renewable energy sources.

The MNRE and various state governments initiatives to provide a supportive and stable policy framework for investment in wind power have contributed to the growth of the Indian wind power industry over the last four years. Seven states in India Tamil Nadu, Karnataka, Andra Pradesh, Rajasthan, Maharashtra, Gujarat and Madhya Pradesh account for over 7000 MW of wind power installations in India.

KEY GROWTH DRIVERS

We believe that the global market for wind power has become significant due to the following factors :

è Increasing cost competitiveness

è Environmental awareness and governmental initiatives

è Repowering

è Off shore market

PRODUCTS

S88-2.1 MW

S88-2.1 MW is designed for a medium wind speed regime. Its wind turbine concept is based on a robust design with pitch regulated blade operation, a 3-stage gearbox with 2200 kW rating and flexible coupling to the asynchronous induction generator. The Suzlon flexi-slip system provides efficient control of the load and power control and the turbine operation is efficiently controlled by the Suzlon controller. These technologies are all well-known in the wind power industry and have proven themselves over time. The S88-2.1 MW is designed to withstand extreme conditions and operate effectively with lower maintenance cost.

S82-1.5 MW

The S82-1.5 MW has a well-suited ratio between rotor diameter and generator for most sites in a medium wind speed regime. The wind turbine concept is based on robust design and is efficiently handled by the Suzlon controller. These technologies are all well-known in the wind power industry and have proven themselves over time.

S82-1.5 MW

S66-1.25 MW

The S66-1.25 MW has a well-suited ratio of rotor diameter to generator for most sites in a medium wind speed regime. The wind turbine concept is based on robust design and is efficiently handled by the Suzlon controller. These technologies are all well-known in the wind power industry and have proven themselves over time.

S64-1.25 MW

The S64-1.25 MW has a well-suited ratio of rotor diameter to generator for most sites in a medium wind speed regime. The wind turbine concept is based on robust design and is efficiently handled by the Suzlon controller. These technologies are all well-known in the wind power industry and have proven themselves over time.

S52-600 kW

The S52-600 kW has a well-suited ratio between rotor diameter and generator for most sites in a medium wind speed regime. The wind turbine concept is based on robust design and efficiently handled by the Suzlon controller. The technologies used in the S52-600k are all well-known in the wind power industry and have proven themselves over time.

EXPERTISE

Company enjoy business expertise in mainly three areas

è Product development and supply

è Project services

è Operations and maintenance services

Product Development & Supply

Our approach to technology is one of constant research, development and innovation. To create products that deliver high performance and reliability in varied operating environments, we employ the best in every field of development in the wind energy industry. With world-class design, R&D teams, and state-of-the-art facilities in Belgium, Germany, India and The Netherlands, our R&D team is a combination of the finest of global experience and in-depth expertise.

Suzlon, in joint venture partnership with REpower, has established the Renewable Energy Technology Center in Hamburg, and has acquired Hansen Transmissions International NV, Belgium to manufacture gearboxes.

PROJECT SERVICES

Suzlon focuses on providing a complete range of efficient, cost effective wind energy solutions. Using the support and talent of our multi-cultural, multi-ethnic global workforce, we have successfully constructed and managed customised wind farms in varied geographic areas and climatic conditions.

Operations & Maintenance Services

Our operations and maintenance teams are committed to extracting longer life spans and higher returns from every wind turbine we manufacture, which is why we offer a comprehensive range of value-added services and solutions. Our operations and maintenance efforts ensure energy yield optimisation in accordance with onsite climate and grid conditions. We also provide detailed monitoring services for every wind turbine erected. This combined synergy of our business units and customer support network succeeds in providing our customers with benefits that help satisfy their expectations of a global wind energy solutions provider.

KEY DIFFERENTIATORS

There are basically four main areas where company is enjoying differentiation from its competitors.

è Turnkey solutions

è Vertical integration

è Global integration

è Quality management and HSE

Turnkey Solutions

Suzlon’s turnkey services range from complex front-end engineering design, construction, installation and commissioning to long-term operations and maintenance as well as the length, breadth and depth of customer requirements across the wind energy value chain. Our key differentiator is having both strong front-end engineering and the benefit of local experience, interface management and construction know how.

Key benefits we offer clients range from development, to construction to operations. Manufacturing-driven supply chain strengths and global expertise help offer customers the best in quality services. Suzlon is well placed to assist clients in overall wind power project delivery. The major sections of the delivery process where Suzlon can add value are Micrositing, Grid Connection, HV/ Substation creation, Electrical (Reticulation), Laying Roads and Foundations and Project Scheduling. Suzlon also offers end-to-end solutions in select geographies whenever required. In India Suzlon’s end-to-end solutions start at wind mapping and land sourcing, and extend right across the entire value chain.

Vertical Integration

Suzlon’s vertical integration has been its success driver. Foresight of the current economic challenge and adopting a visionary strategy has set us forth to become the most vertically integrated wind turbine maker in the world. We embarked on a journey to develop leading edge technology and build manufacturing capability for all key components in the wind power domain.

The Wind Industry’s supply chain experiences the critical bottleneck of a long production lead time for key components such as Bearings, Gearboxes, Forging materials etc. However, Suzlon has gained the critical competitive advantage with:

Better control over time, cost & quality
Long-term service support to customers
Turbine technology integration
Faster product rollout

Global Integration

Our ‘global experience, local expertise’ approach to talent capital has ensured a 23-nationality multi-faceted talent pool that goes wide and deep. This gives us the advantage of leveraging local talent and creating a truly global expert workforce. Our continuing growth in our operations in all key international wind energy markets and presence in all emerging markets is further strengthening our global integration.

Currently, we do aerodynamics research in The Netherlands, develop wind turbines and components in Germany, and optimize gearboxes in Belgium. Our manufacturing footprint spans 3 countries: China, India and USA, and our 13 units make all key components of wind turbines. This is a testimonial to our focus on global integration and our passion to make Suzlon a company as global as the wind.

Quality Management & HSE

Establishment of an independent Quality Management Organization within Suzlon helped define a strategic roadmap with which to drive the organization on a focused goal from quality control to quality excellence and ultimately to quality benchmarking that induces a state of future readiness within the organization.

Quality Management Strategy is a practical approach that is well adapted to excel Suzlon’s strategic business unit growth, cultural bandwidth, quality levels of manufacturing verticals along with backward integration. Quality Management at Suzlon seeks to continually leverage upon its size by strengthening its execution capability to deliver a customer satisfied, reliable and robust user friendly product, with focus on rapid reduction of life-cycle cost of the product, efficient product performance that would ensure a sustained and profitable growth of the organization.

Quality excellence is a long journey that is never ending. Obstacles on the route that sometime lead to diversion and weakening of the constancy of purpose are being dealt with by establishment of a series of measurements and milestones that would help measure progress and initiate corrective action.

CONCLUSION :

Company deliver good results for the quarter ended December 2010. As compare to the loss in last quarter company has reported net profit for the quarter ended December 2010. Going forward we are expecting company to post strong numbers both in top line as well as in bottom line and on back of the recommend to accumulate the stock at current market price with a target price of Rs. 60 With a time horizon of twelve months.

Buy IVRCL INFRASTRUCTURE & PROJECTS LTD.

2011-02-07T02:18:00.001-08:00

Buy at Rs. 74.05 Target at Rs. 96

INTRODUCTION

IVRCL Infrastructures & Projects was incorporated in 1987. It is engaged into engineering procurement and construction (EPC) activities in India. It conducts operations in 5 sectors namely Water and Environment, Transportation, Buildings, Power and Industrial Structures.

It has achieved a turnover of USD 900 million and net worth USD 400 million.Prsently, the company has order book of Rs.14,500 crore.

PROJECTS

Water- With increasing demand for water in irrigation, drinking and industrial purposes IVRCL has undertaken various EPC project in water sector. It has completed projects like Sujalam Sufalam Water supply Pipeline, RWS project, Water treatment system package for NTPC, Water Distribution Systemin Bikaner City etc. It is currently executing projects namely Telugu Ganga, Kalwakurthi Lift Irrigation Scheme, Koil Sagar, Purandhar Lift Irrigation are amongst others.

Transportation- It has undertaken construction of roads, bridges and tunnel projects. It has completed several project such as Pachpadra to Ram Ji Ki Gol Road in Rajasthan, Road from Ron to kushtagi in Koppal District, etc.

Building and Industrial Structures- It bagged various orders for construction of building and industrial units such as Rajiv Gandhi InfoTech Park in Pune, Research Building for IGCARL in Andhra Pradesh, Developing integrated township in Kolkata, EPC contract for TATA Cummins plant in Maharashtra, etc.

Power- It has a prominent presence in power sector in establishing transmission lines, substations, distribution systems, and railway traction works. In the segment, it has bagged several orders such as power project under Yavatmal district in Maharashtra, rural electrification works in districts of Uttar Pradesh etc.

OUTLOOK

IVRCL has bagged Rs.893 crore contract from Andhra Pradesh Government to create irrigation facility. IVRCL has also bagged massive irrigation project from Narmada Valley Development Department in Madhya Pradesh.

INDUSTRY OVERVIEW

Infrastructure sector remains to be the main focus for the government as it has received 46% of total planned allocation in this year's budget with a provision of Rs.1,73,552 crore for upgrading infrastructure in both rural and urban areas. Major emphasis has been given to development of high quality physical infrastructure such as roads, ports, airports and railways. Allocation of Rs.40 billion towards the development of rural roads is in line with previous budgets with Rs.99.9 billion for planned spending on national highways. Though allocations for the roads and highways sector have been provided, implementation may be slow due to policy ambiguity at the state and central government levels and delays on account of land acquisition. The refinance facility provided by IIFCL to banks will improve the credit availability for infrastructure projects such as BOT road projects undertaken by the private sector and facilitate in achieving financial closure for projects.

Among the government initiatives, the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is qualitatively different aiming to scale up planned and integrated development of urban infrastructure and services involving a series of reforms over a seven year program (2006-12), covering 63 mission cities with an envisaged investment of over Rs.1,000 billion.

COMPANY OVERVIEW

On the backdrop of the impetus provided by infrastructure growth thus throwing up immense opportunities for the construction sector, IVRCLINFRA has continued to exhibit its remarkable acumen and success in bagging projects in a cross section sectors taking its order book to Rs.2,33,558 Million combined while sustaining its strong financials track record. While we are consistently making efforts to increase our presence in the core sectors of the infrastructure space, the company has continued its dominating presence in the water and irrigation segments. The execution of projects and translation into revenues has also kept pace. Moreover, company’s strong customer focused approach and belief in managing the fundamentals well has kept them ahead.

Aside of being a market leader in Water, IVRCL' s integrated business in irrigation and its continued presence in transportation, buildings & industrial construction and Power Transmission contracts has ensured the bagging of some of the very large and prestigious projects, besides continuing to get regular orders in other areas as well. Of its total order book as of now, 47% comprises water projects, 31% of roads and highways, 16% of buildings works, and the balance 6% of power and other projects.

The Company's continued interest and foray into emerging lines of businesses such as oil & gas, hydropower, railways, mining and power generation hold much promise for the Company in the coming years.

WATER

Orders are flowing for water and waste water treatment industry and the Indian water treatment industry is estimated to be about Rs. 20 Billion and growing at 15 to 20 % annually including the Rs 12 Billion industrial water treatment sector and Rs 8 Billion point of consumption market which involves localized water treatment. The water industry size in India is about Rs.60 billion and the industrial water and waste water treatment market size would be around Rs.30 billion and the drinking water purification market would total around Rs.20 billion.. The growth rates in the last 3 years have hovered in the vicinity of 18-20 percent. The global market would be about $ 50 billion. Good Water management is crucial to overcome the water crisis that threatens our country. We must create an infrastructure that ensures sustainable water supply for the country's agricultural, industrial and domestic use.

TRANSPORTATION

The most outstanding achievement of the Company during the year in the Transportation sector has been the completion and commissioning of two of the three National Highway BOT projects undertaken by the Company. We have completed the Kumarapalyam-Chengapalli Stretch of NH-47 in the state of Tamil Nadu, the first of the BOT highways projects closely followed by the second project, namely Jallandhar -Aamritsar on NH-1 in Punjab. The CODs have been received and toll collection has commenced for both the projects. The third BOT Highway projects, namely Salem-Kumarapalyam on NH-47 is nearing completion and is to be commissioned very soon. IVRCL has achieved the distinction of having clocked over 21 million accident-free man hours and has been rewarded by NHAI for this remarkable feat.

BUILDINGS AND INDUSTRIAL STRUCTURES

The Company has, during the year successfully completed several diverse projects such as the EPC Contract for TATA Cummins Ltd. Plant at Phaltan, District Satara in Maharashtra, EURO-IV Project of Chennai Petroleum Corporation Limited at Chennai, Tamil Nadu for Engineers India Ltd and for a Blast Furnace - 2 area for Integrated Steel Plant for Ramsarup Lohh Udyog Limited, Kolkata, besides undertaking works for Guru Gobind Singh Refinery Project of M/s. HPCL - Mittal Energy Limited at Bathinda in Punjab; civil, structural and associated UG Piping works of MS Quality Up-gradation project at Guwahati Refinery in Assam And Construction of TELCON Factory at Kharagpur, West Bengal for Telco Construction Equipment Company Ltd. consisting of various factory Sheds like Excavator Assembly, Dumper assembly, Paint house etc.

Infrastructure development across specific sectors such as sea water desalination, power generation, hydropower, oil and gas, ports, mining, railways freight corridors and industrial infrastructure construction are some of the key sectors poised for a big leap forward and contribute over 60 per cent of the revenues of the construction business in the coming years. Having firmly established in the major infrastructure sectors, namely water, roads, buildings and power, IVRCLINFRA briskly foraying into these emerging sectors by leveraging its core competencies as a value addition to its existing business areas.

POWER TRANSMISSION

Against this backdrop of a vast opportunity in the field of power transmission and distribution, IVRCL shall continue to focus and strengthen its presence in the power transmission sector particularly in cross country transmission lines, substations, distribution systems and railway traction works and IVRCL will continue to pursue opportunities in these segments. The Company has completed Constructing and erecting on Turnkey basis 132 KV. Chikali-Dusarbid Line to proposed 132 KV Sub Station 33 KV Single Circuit Line for Khadakpurna Project Division.

CONCLUSION

Since last couple of quarters frontline infrastructure companies are posting below average results on back of high interest cost. Going forward we are expecting companies to post good growth both in top line as well as in bottom line. Technically the stock is also trading in over sold zone. Buy the stock at current market price with a target price of 96 with a holding period of twelve months.

Buy EVEREST KANTO CYLINDER LTD.

2011-02-02T06:49:00.001-08:00

Buy at Rs 80.85 Target at Rs 105.00

INTRODUCTION

Everest Kanto Cylinder (EKC) is engaged in the business of manufacturing industrial and CNG cylinders. Incorporated in 1978, EKC has manufacturing units located at Aurangabad, Tarapur and Gandhidam (India) and Middle East. EKC has received ISO 9001:2000 for Quality Management for its three manufacturing plants. The company has production capacity of 5.00,000 cylinders on an annual basis. EKC’s Dubai plant manufactures cylinders ranging from 1 to 280 liters water capacity and working pressure from150-400 bar (Test Pressure up to 650 bar). The company has subsidiaries, namely EKC International FZE, EKC Hungary Kft, CP Industries Holdings, Inc and EKC Industries (Tianjin) Company.

PRODUCTS

Industrial Cylinder- The company is engaged in manufacturing of industrial cylinders for for oxygen, hydrogen, nitrogen, argon, helium, air, etc.

Allied Products- The company is engaged in manufacturing of allied products such as cylinder valves, value protection guards, value protection caps, trolleys, purge bottles and industrial equipment.

Medical Cylinder- Under this it manufactures oxygen and nitrous oxide cylinders.

CNC cylinder- The company manufactures CNG cylinders required in three wheelers, buses and delivery vehicles. It also manufactures beverage cylinders and accumulators.

OUTLOOK

The company is eying an entry into city gas distribution in Kolkata. It is negotiating with Kolkata-based Calcutta Compressor and Liquefaction (CC&L) to acquire majority stake.

EXPANSION PLANS

EKC successfully commissioned the large pressure vessel manufacturing facility in India and started producing and selling jumbo cylinders within India and in the international market amidst fierce competition. With the commissioning of this plant, EKC group has become the largest jumbo cylinder manufacturer in the world. EKC has also ventured forward with the acquisition of a company in India which is into purchase and sale of Natural Gas. This foray by EKC has opened a window to the hitherto untapped eastern region and presents a significant growth opportunity in the years to come.

EKC is also proceeding to complete the implementation of a brown field expansion project for manufacture of industrial cylinders from Billets and the plant is expected to be operational in the financial year 2010-11. The Greenfield project being set up in Special Economic Zone (SEZ) would help EKC to make an entry into the lucrative OEM segment which uses light weight cylinders. This project is also expected to go on stream in 2010-11.

OPPORTUNITIES

1. Growth in CNG Infrastructure In the domestic market, CNG infrastructure is expected to grow on account of increase in coverage of city gas distribution projects and increased availability of gas with new discoveries by the various gas exploration companies. On the global front, rising concerns over environmental pollution by vehicle emissions and oil price fluctuations have caused governments of various countries to initiate CNG implementation programmes. With natural gas becoming easily available and CNG infrastructure improving, we believe the demand for CNG vehicles will continue to rise. This, in turn, will boost demand for CNG cylinders.

2. Expansion to meet demand The organic expansion plans of EKC are targeted at meeting the growing domestic and global demand for CNG and speciality gas applications as well as offering value-added products such as jumbo cylinders and cascades which would add significantly to the topline and bottomline enabling EKC to meet competitive pressures. The expansions would enable EKC to derisk its business model by expanding its presence to other geographies (South East Asia, South America, USA, etc.) while maintaining its leadership position in the countries where it is already operating.

3. Change in Product Mix In the past few years, EKC has moved up the value chain by changing its product-mix in favor of high value-added products such as CNG cylinders, cascades and Jumbo cylinders, thereby positioning itself ahead of competition in various markets.

4. Economies of Scale EKC's existing manufacturing facilities are fully geared up to utilize their capacities thereby leading to greater operational efficiency which would result in lower cost of production and increased profitability. Also, EKC has the ability to manufacture and deliver vessels of different sizes ranging from 1 Ltr. upto 3000 Ltrs. water capacity from its multiple operating units.

5. Investment in New Technologies EKC has made significant investments in newer and alternate technologies which would ultimately enable it to reach leadership status globally. Also, it would be the only company in India to use alternate technologies and raw materials in its new plants. This would enable EKC to broadbase its raw material supply chain which would also lead to lower cost of production and better working capital management. The new Greenfield project for CNG cylinders would enable it to cater to the niche OEM segment outside India through supply of light weight and more value added cylinders.

RISKS AND CONCERNS

1. Competition The Indian cylinder landscape has witnessed the proliferation of small manufacturers including those without prior track record of experience in the industry. This has posed a challenge mainly in the unorganized retrofit and industrial cylinder segments. While this had a pronounced effect in the first half of the year, however, with EKC's track record and experience, EKC managed to increase its presence in the OEM segment as well as improve the sales of high value added products. Although increase in competition does pose a challenge, however, given EKC's scale of operations and with the setting up of new facilities using alternate technologies and raw materials, EKC's dominance in the market place would continue to be maintained in the years to come.

2. Volatile Steel Prices Seamless steel tube prices continued to be volatile and the impact of high cost inventory affected the operational results of EKC. However, EKC took effective steps towards unwinding of such high cost inventory and realigned its procurement policies in order to ensure that the benefits of lower procurement cost are achieved while at the same time, inputs are available at the right time for operations. Any further volatility in the prices or disruption in availability of raw material could negatively impact the profitability of the Company. As already mentioned elsewhere in this document, EKC has taken proactive steps to broadbase its supplier as well as raw material base whereby alternate raw materials shall be used in its new plants thereby derisking the volatility factor associated with the inputs.

3. Dependence on Government Plans The growth in CNG cylinder market for storage and transportation of CNG would be dependent on government plans and initiatives to switch over to alternative fuel. Any slowdown in the implementation of the stated policies of the government as well as creation of infrastructure could affect the growth in the cylinder industry. However, with natural gas being made available in most parts of the country, it is expected that the Government policies would continue to be progressive leading to accelerated growth in the CNG cylinder industry.

4. Slowdown in the Indian automobile industry OEMs and retrofitters are the major customers of EKC's CNG cylinders in the automobile sector. Any slowdown in cylinder off take from OEMs in India will adversely affect EKC's operations. However, demand from other markets would help in offsetting the slowdown in the Indian auto sector.

5. Increase in imports The Indian cylinder industry has witnessed increased imports of industrial cylinders during the past years, EKC has therefore ventured into production of cylinders with indigenous and non conventional inputs. This move will significantly dent the advantages, if any that imported cylinders had over domestic products.

6. Fluctuation in Foreign Currency Since EKC has significant imports as well as exports, any foreign currency fluctuations might affect the results or performance of the Company.

CONCLUSION

Company is enjoying dual benefit of not only catering the demand of the domestic market but also now started its foot prints in global market as well. Now since CNG is being used as an alternate fuel and the consumption of CNG is growing day by day. This in turn will create more demand for CNG cylinder which actually offers a big business opportunity for the company. Looking at its past quarterly performance we are expecting strong growth both in top line as well in bottom line. We are expecting strong numbers for December quarter which will be due in next couple of weeks. We recommend to accumulate the stock at current market price with a target price of 105 with a holding period of twelve months.

Buy BIOCON LTD.

2011-01-22T05:38:00.001-08:00

Buy at Rs. 367.30 Target at Rs. 550

INTRODUCTION

Biocon, Asia’s largest biotechnology company, started itself with seed capital of Rs.10,000 in 1978, is now a billion dollar company. The company manufactures biotechnological products catering to the healthcare segment. It is engages itself in all phases of the product cycle from discovering to development & then commercializing the same drugs. This pharmaceutical company has fermentation-based technology, creating cost effective drugs. Syngene and Clinigene, subsidiaries of Biocon conduct R& D programs for international pharmaceutical and biotechnology majors.

Biocon produces anti diabetic agents like Acarbose, Pioglitazone, Repaglinides & Rosiglitazone. In the biological segment it produces Insulin, Erythropoietin (EPO), Filgrastim (GCSF), Streptokinase & Monoclonal Antibodies. The drug major produces mycophenolate mofetil, sirolimus and tacrolimus. It also produces & market mix of specialty & industrial enzymes for industries like paper, brewing, beverages, food, brewing, textiles & distilling. The company’s drug portfolio consists of lovastatin, simvastatin, pravastatin and atorvastatin.

RECENT DEVELOPMENTS

After Biocon’s acquisition of AxiCorp a few months back, the company has exposed itself to new market as well as to existing pharmaceutical` product in Axicorp.

The company focus is now on oral insulin, monoclonal antibody for treating arthritis. This insulin drug has entered in Phase-3 of its clinical trails. If the drug is successfully developed, it will give the company an opportunity to reach new customers & markets.

Biocon has entered marketing agreement with Abraxis BioScience to market ‘Abraxane’ in ten countries. ‘Abraxane’ is developed for treatment of breast cancer after failure of combination therapy for metastatic disease or relapse within six months of adjuvant chemotherapy. This strategic move of company is to provide effective & safer cancer treatments globally.

BUSINESS OPERATIONS OVERVIEW AND OUTLOOK

During the year, total revenues increased by 44% from Rs. 16,732 million to Rs 24,048 million. In the year under review, Statins segment grew 26%, Immunosuppressants by 27% and Insulins by 11%. Our domestic branded formulations business grew 35% with successful market share wins for our key brands. The Indian pharmaceutical market is estimated to grow at over 17% per annum and presents a good market opportunity for your company. As India's epidemiological profile alters, drugs for cardio-vascular problems, disorders of the central nervous system and other chronic diseases will account for 64% of total pharmaceutical sales in 2012, up from 50% in 2009. The remaining 36% will come from anti-infective, gastrointestinal drugs and vitamins. With leading brands in Diabetology, Nephrology, Oncology and Cardiology, we are best positioned to capitalize on this opportunity and expect our domestic branded formulations segment to contribute about a quarter of our revenues by 2015. With a view to attaining leadership in key therapies, we will focus on building large brands and increasing the number of successful new introductions. Acquisitions, partnerships and in-licensing are also value creating strategies that will likely be adopted towards reaching this goal.

The research services landscape has been in a state of flux for the last decade. In what started as a labour arbitrage opportunity in the early nineties for "low probability candidates", is now converting into a good business model with the integrated drug discovery process. Big pharma companies are facing the pressures of reduced R&D budgets, shrinking revenues, higher costs of drug development and declining R&D productivity. The financial meltdown has further added to their woes.

On the research front, we have made significant progress in our partnership with Mylan for developing biosimilars for global markets. We expect to commence clinical trials in India with two biosimilar monoclonal antibodies at a fast pace. We will shortly commence clinical trials for our Recombinant Human Insulin for European registration. Our novel pipeline has achieved significant milestone spearheaded by the IND filing with USFDA for our Oral Insulin program IN105. We expect to initiate a clinical study for Type I Diabetics under this US IND later this year. Our coveted T1h program for a novel Anti-CD6 targeting monoclonal antibody is also entering Phase III clinical trials for Psoriasis. Additionally, our novel anti-CD20 molecule has completed preclinical studies and is expected to get into the clinic in India this year. Our novel programs are expected to unlock substantial value upon licensing.

RISKS & CONCERN

The Generic Industry is subject to patent litigation and regulatory issues. Patent challenges or delay in receipt of regulatory approvals could delay our product launch in key markets. In addition significant additional competition in key products could erode our market shares and result in reduced prices and profitability. The consolidation of the generic industry could result in larger generic players acquiring manufacturing capabilities thereby reducing the market for third party manufacturers. The failure to obtain regulatory approval for new drugs under development could affect long-term business opportunities. Other key risks related to our business include loss of key personnel, increase in input costs and adverse movement of the Indian Rupee against the US Dollar.

MILESTONES ACHIEVED

Biocon is India India’s first biotechnology company set up in 1978
It became first company to export microbial enzymes to the US & Europe
Biocon is the first Indian company to be approved by USFDA for the manufacture of lovastatin, a cholesterol-lowering molecule
Biocon is the first biotechnology company to receive ISO 9001 certification in India
Syngene, a Biocon subsidiary, is India's first custom research company in drug discovery
Biocon was awarded the Biotech Product and Process Development and Commercialisation Award in 2001 by the Department of Biotechnology, Ministry of Science and Technology, Government of India
Syngene was awarded the Certificate of Excellence for Export Achievement by the Government of India, for two consecutive years 2002-2003
Biocon launches BIOMAb EGFR – India's first anti-cancer, therapeutic Monoclonal Antibody-based drug for treating solid tumours of epithelial origin, such as head & neck cancers, 2006Being premier in biotechnological segment, Company is having a consistent performance in revenue & profit. Revenue for company comes from major three segments i.e. Bio Pharmaceuticals, enzymes, research & technical licensing fees. Looking at year to year performance the company is giving consistent profit on an average of 13%.

LOOKING AHEAD

The ability of a company to move forward with confidence is primarily determined by its judicious investments in the past and a current ability to navigate through change and challenge. I believe Biocon has always developed and invested in a uniquely differentiated business model that continues to drive growth, even in difficult times. Biocon's performance, at every level in the year gone by, has been commendable. Thanks to the unflinching support of Team Biocon, we now feature in the prestigious Forbes 'Best Under A Billion' list of companies for "seizing opportunities arising from economic uncertainty". Without a doubt, it is our people that enable us to serve patients and our shareholders better and better each year. At Biocon, it is not about being the biggest - it is about being the best. On behalf of the Board of Directors, I once again thank all my colleagues at Biocon and dedicate this Annual Report to them.

CONCLUSION

Biocon recorded a strong performance in the quarter ended December 2010, posting a 24% jump in net profit to Rs 101 crore compared to the corresponding period last year. The company's revenue rose 15% to Rs 738 crore, led by robust growth in biopharmaceuticals, branded formulations and active pharmaceutical ingredients (APIs). This is the first quarter where company have crossed a net profit of Rs 100 crore at the group level. The operating margin has increased to 24% in the quarter. Revenues from biopharmaceuticals rose to Rs 649 crore, a 15% jump compared to the same period last year. Licensing income increased to Rs 77 crore, from Rs 18 crore. Pharma major Pfizer has contributed significantly to the licensing income. GOING FORWARD COMPANY MAY COME UP WITH IPO OF CLINIGENE WHERE IN WE MAY FIND UNLOCKING OF VALUE. COMPANY IN RECENT ANNOUNCEMENT OF ITS DECEMBER QUARTER RESULT MENTION THAT IT MAY TAKE 12 MONTHS FROM NOW FOR THE SAME. APART FROM THIS COMPANY HOLD VERY STRONG INCOME FROM LICENSING FORM PFIZER. LOOKING AT THIS WE ARE EXPECTING STRONG PERFORMANCE IN COMING QUARTER AND THE IPO OF CLINIGENE WILL PLAY A MAJOR ROLE IN VALUE UNLOCKING ON BACK OF ALL THIS WE ARE STRONGLY RECOMMENDING TO ACCUMULATE THE STOCK AT CURRENT MARKET PRICE WITH A TARGET OF RS. 550 WITH A HOLDING PERIOD OF TWELVE MONTHS. WE ARE EXPECTING STOCK TO DELIVER ABNORMAL RETURN IN SHORT TERM.

Buy TVS MOTOR COMPANY LTD.

2011-01-18T23:46:00.001-08:00

Buy at Rs. 60.45 Target at Rs. 79.00

INTRODUCTION

TVS Motor Company -- a member of the TVS group is the largest company of the group in terms of size and turnover. The TVS group has always been inspired by a century-long mission and vision of its own destiny. It is not just a business but a way of doing business, which sets TVS apart from others. TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world, with annual turnover of more than $1 billion in 2008-2009. It is the flagship company of the $4 billion TVS Group. The company has four plants located at Hosur and Mysore in south India, in Himachal Pradesh, North India and one in Indonesia. The company has a production capacity of 2.5 million units a year. TVS Motor's strength lies in design and development of new products -- the latest launch of seven products on the same day seen as a first in automotive history. TVS delivers total customer satisfaction by anticipating the customer's need and presenting quality vehicles at the right time and at the right price. The customer and his ever changing need is its continuous source of inspiration.

TVS has been at the forefront in bringing a revolution in the way personal commutation was happening, way back in the 1980s. Beginning with launching a simple, easy-to-use moped for the middle class in India in the 1980s to launching seven new bikes in a single day (first time in the history of the automotive industry in the world), TVS has often taken the unbeaten path to innovation.

TVS BRANDS

• TVS Apache • TVS Apache RTR FI 160 • TVS Centra • TVS Fiero FX • TVS Flame • TVS Scooty • TVS Star • TVS Victor • TVS Victor GLX 125 • TVS XL Super

GROUP COMPANIES

• TV Sundram Iyengar and Sons • Lakshmi Auto Components • Lucas Indian Service • Axles India • Brakes India • Harita Grammer • India Motor Parts and Accessories • India Nippon Electricals • Lucas TVS Limited • Madras Auto Service • Southern Roadways • Sundaram Brake Linings • Sundaram Fasteners • Sundaram Finance • Sundaram Industries • Sundaram Motors • Sundaram Clayton • Sundaram-Clayton • Srinivasan Services Trust

COMPANY PERFORMANCE

New Product Launches and Initiatives:

During the year 2009-10, the following new products and variants were launched.

The Company introduced TVS JIVE 110 cc with innovative T-Matic technology in the executive segment which accounts for 60% of the total motorcycle market. This motorcycle allows hands-free gear shift because of absence of the clutch lever. Coupled with this an anti-stall mechanism makes smooth riding possible at low speeds even in high gears, without the engine shutting off. It is also the first motorcycle in the country to have an under-seat storage compartment, large enough to hold a water bottle, vehicle documents and even a small umbrella.

TVS wego marks the foray of the Company into the higher cc (>100 cc) scooter segment which accounts for 80% of the scooter market. It is a family-friendly scooter that is designed for multiple users, be they are men or women, young or old. This sleek metal bodied scooter strikes a perfect balance between stability and maneuverability, power and mileage, making it a delight to ride for any category of users. The all aluminium low-friction engine ensures best-in-class mileage. Multi-reflector halogen headlamps and LED tail lamp with optical guides give the scooter dynamic styling and effective lighting. The Body Balance Technology makes it the best scooter to handle in city traffic conditions.

TVS Apache RTR 180s sporty, chiseled looks and unmatched performance enabled by superior engine technology, make the bike a Class leader in terms of performance and styling. The bike has an aerodynamic design and high power-to-weight ratio that enable excellent acceleration and handling.

TVSTRU4 oil launched successfully 3 years ago, has captured 3% market share in 4T market. In line with the changes happening in lubricant's international market, the Company has developed TRU4 PREMIUM SAE 10 w 30 oil, a semi synthetic and fuel efficient lubricant. Subsequent to the successful tests, this product was awarded JASO MA2 certification. With TRU4, the Company has entered international markets like Srilanka and Africa.

Two Wheeler Operations: Domestic:

In motorcycle category, the Company achieved a sales growth of 6% during 2009-10. Sales of TVS Apache grew by an impressive 26% and TVS StaR grew by 5%. TVS JIVE launched at end of the year is well received by the target segment and expected to contribute significantly in the next year.

"Scooty" continues to be a significant player in the scooter segment.The sales of Scooty Pep and Streak grew by 19%.The Company market share in the overall scooter market declined marginally from 21 % to 20%.There was a delay of six months in the launch of TVS wego a unisex higher cc scooter. The product is well accepted in the market and will help the Company to regain market share in the scooter segment. With an improved rural economy, mopeds grew by 30.3% during the year.

OPPORTUNITIES AND THREATS

Growth in two-wheeler demand will come mainly from rising population in target age and income groups and increased use of personal transport. Smaller towns are expected to contribute more to the industry growth.

TVS StaR City and TVS Sport motorcycles stand to gain from this. Customer acceptance, appreciation of the new technology and 'positive word of mouth' will result in increased sales of TVS JIVE motorcycles.

Apache RTR 180 has further strengthened the Company's position in the premium segment. However it requires frequent refreshes and upgrades to remain on top of mind of younger customers.

The Company has a strong presence in the sub 10Occ ungeared scooter segment. The launch of TVS wego in the large scooter segment further increases the Company's growth prospects in the scooter category.

MILESTONES

1980 TVS Motor launched India’s first two-seater 50cc moped -- TVS 50.

1984 The two-wheeler major became the first Indian company to introduce 100cc Indo-Japanese motorcycles.

1994 It launched India’s first indigenous scooterette -- TVS Scooty, a 100cc model.

1996-97 Introduced India’s first catalytic converter-enabled motorcycle, the 110cc Shogun. Launched India’s first 5- speed motorcycle, the Shaolin.

2000 Launched TVS Fiero, India’s first 150cc, 4-stroke motorcycle.

2001 Launched TVS Victor, 4-stroke 110cc motorcycle, India’s first fully indigenously designed and manufactured motorcycle.

2002 TVS becomes the world’s first two-wheeler company to win the world’s most prestigious recognition in Total Quality Management – the Deming Award 2002. TVS wins the Technology Award from Ministry of Science, Government of India for successful commercialization of indigenous technology.

2004 Launched TVS Centra, a world class 4-stroke 100cc motorcycle with revolutionary VT- I engine for best in class mileage. Launched TVS Star, a 100cc motorcycle ideal for the rough terrain. TVS wins TPM Excellence award from Japan Institute of Plant Maintenance (JIPM). TVS wins Outstanding design Excellence Award for TVS Scooty Pep.

2005- 06 TVS launches its Indonesian plant. Launched TVS Apache, which set the youth’s imagination on fire. Apache went on to be the Bike of the year for 2006, winning six prestigious awards.

2007 TVS Motor Company rolls out seven new products. TVS launches its Himachal Pradesh Plant at Nalagarh.

2008- 09 Apache Refresh with Rear Disc Brakes was launched in December 2008. TVS Motor company bags two coveted IT awards in September 2008 -- SAP ACE 2008 Award and 2008 Symantec South Asia Visionary Award. Scooty Pep was launched with balancing wheels in August 2008. Scooty Wimbledon Collection launched in June 2008. Apache RTR FI was launched June 2008. TVS Motor Company launched the revolutionary 125cc Flame in March 2008. TVS made by its foray into the three-wheeler market with TVS King in March 2008.

2009 TVS unveils ‘High performance’ with Apache RTR 180 in June 2009. TVS scooty Streak was launched. TVS Flame SR 125 launched was June 2009.

CONCLUSION

Both on top line as well as on Bottom Line Company has reported good numbers on quarter on quarter basis. On net profit front company has reported a net profit of Rs. 54.78 Cr as compare to 40.38 Cr where as on the revenue front company’s revenue has gone up from 1392.96 Cr to 1616.24Cr on quarter on quarter basis. On back of strong growth in four wheelers segment we expect a good growth in two wheelers segment as well in coming quarters. We expect company to post strong numbers both in top line and in bottom line in coming quarters. With this view we are recommending to accumulate the stock at current level with a price target of Rs. 79 with a time horizon of twelve months.

Source :- SIHL

Buy Rolta India

2011-01-09T08:30:00.001-08:00

ROLTA INDIA LTD.

Buy at Rs. 153.55 Target at Rs. 200

INTRODUCTION

Rolta India is engaged in providing IT-based solutions in areas of geospatial, engineering design and defence and homeland security. Rolta was incorporated on June 1989.

The company provides cutting edge software engineering and development services in CAD/CAM/GIS and ERP consulting. It is engaged in developing interactive media and games.

Currently, the company holds 70% share in GIS (geo-spatial information system) market, 90% share in EDA market and 95% share in defence geospatial market in India.

Rolta India has received various certifications for quality management such as ISO 9001:2000, ISO/IEC 20000-1:2004, ISO 27001:2005 and SEI CMMI Level 5.

The company’s headquarter is located at Mumbai and employs over 4000 professionals across the world. Rolta has executed multi-million dollar projects with customer presence in 35 countries.

The company's clientele includes big names like 3M, Control Board, Walmart, Mumbai Police, ONGC, Torrent Power, Department of Civil Aviation (Abu Dhabi), Larsen & Toubro, Tata Consultancy Services, ABB-Lyondell, Hong Kong Telecom, Bayer, Samsung, Siemens PG, Reliance, HSBC, Natural Gas Corporation of New Zealand, UBS, Vodafone and many more.

OUTLOOK

Rolta acquired Piocon Technologies, Inc, which provides solutions to oil and gas refineries. The move will enable the company expand its scope of business.

RECOGNITIONS

The company received the 'National Export Award' by Government of India.

It was listed amongst the 200 Best Companies in Asia (sales under $ 1 billion) by Forbes Magzine.

SERVICES

GIS- Under this, the company provides GIS database design and development, map creation/ updating and finishing, data migration/ conversion and format translation, software development and customisation, and systems integration. It has implemented a `Dial 100’ solution in India on similar grounds to 911 solution in the US.

Engineering Design- The company provides design automation tools and engineering services catering various sectors such as power, oil, petrochemicals, speciality and pharmaceuticals.

Ship Design- The company provides advanced ship and marine structure design services and virtual 3D models.

Software Engineering and Development- Under this company provides application development, solution architecture, customization, implementation, migration, software testing and packaging.

eSecurity & Enterprise IT Management- It provides technology services such as security, storage, IT service and asset management, project and portfolio management and IT infrastructure to industries like Banking, Financials Insurance, Healthcare, Retails, Electronics , Telecom, Travel, Logistics, IT Services, Manufacturing and many more.

COMPANY OVERVIEW

Rolta India Limited operates through a network of 12 branches & regional offices across India combined with its ten overseas subsidiaries located in the USA, Canada, the UK, the Netherlands, Germany, Saudi Arabia, the United Arab Emirates and Australia. The company has also established a 50:50 Joint Venture Company, Shaw Rolta Limited with the Shaw Group, USA and a 51:49 Joint Venture Company, Rolta Thales Limited with Thales Group of France.

The Company is a strong player in the Defense and Homeland Security, Government, and Infrastructure sectors. Rolta serves these markets by providing innovative solutions –

Enterprise Geospatial and Defense Solutions (EGDS) The Company launched state-of-the-art solutions for Geo-Imaging and Earth Science applications based on an exceptional combination of its existing repository of intellectual property and key technologies acquired at the source code level, from various companies worldwide. These solutions provide some of the most advanced Geo-Imaging and Photogrammetry capabilities, and are being actively used for mission-critical applications, by hundreds of users, across the country.

Enterprise Design & Operation Solutions (EDOS) The Company continues to further develop and enhance its innovative solutions for plant operations. The Rolta OneView' solution has been deployed at large refining facilities in USA, Europe and South Africa and well received in other markets, such as in the middle-east and India. It enables Owner-Operators throughout the process and power industries to view plant operations as one fully connected ecosystem and provides operational and reliability excellence. The Company is also engaged in expanding this solution to address up-stream operations in the Oil sector.

Enterprise IT Solutions (EITS) Rolta continues to strengthen and build its EITS portfolio and capabilities and the company is serving global markets providing consulting & technology services in ERP, SOA, BI & EPM arenas to address end-to-end solutions. The business group is also focused on developing and upgrading the Company's IP to enhance the value proposition to our customers, and strengthen our standing in the market by offering unique technological approaches as detailed in the R&D section of this Report.

The Company has organised its business into three business groups (each, a "BG"): Enterprise Geospatial and Defense Solutions (Defense & GIS business); Enterprise Design and Operation Solutions (Engineering Design business); and Enterprise IT Solutions (IT business). Detailed overview of each Business Group forms part of Business Group section in this Annual Report. For the year ended 30th June, 2010, the Enterprise Geospatial and Defense Solutions (Defense & GIS business);

Enterprise Design and Operation Solutions (Engineering Design business); and Enterprise IT Solutions (IT business) segment respectively, accounted for 49.7%, 25.6% and 24.7% of the Company's consolidated revenues, as compared to 45.1%, 28.5% and 26.3% for the year ended 30th June, 2009.

The Company has transformed its business from being services-centric to a solutions-oriented model. Through in-house development and strategic acquisitions, Rolta has built a rich repository of Intellectual Property (IP). The Company has launched enterprise-level solutions, built around Rolta IP, for selected vertical segments of industry and government. The Company's Rolta Geospatial Fusion' Solutions are being increasingly accepted in Utilities, Land Records, Telecom and Town Planning segments. The Company has also strengthened its offerings in the Earth Sciences domain and have launched specialized solutions based on Rolta IP for advanced imaging requirements. The Company has launched Rolta On Point TM which has enhanced the power of Rolta's Geospatial Fusion TM solutions. The Company also introduced new cutting edge Geoimaging technology products such as Rolta Geomatica, Rolta Geo Imaging Accelerator and Rolta Geo Conferences. The Company continues to maintain its leadership in the Indian Defense Geospatial market and has introduced many new solutions for Defense and Homeland Security. In the Engineering Design business, the Company continued to maintain its premier position in India as a provider of high value design solutions. The Company continues to further develop and enhance its innovative solutions for plant operations. The Rolta One ViewTM solution has been deployed at large refining facilities in USA, Europe and South Africa and well received in other markets, such as in the middle-east and India. Rolta continues to strengthen and build its IT business portfolio and capabilities to focus on high-end requirements like Business Intelligence, Enterprise Applications, etc. The division is focused on developing and upgrading the Company's IP to enhance the value proposition to the Company's customers, and strengthen its standing in the market by offering unique technological approaches. The Company recently launched Rolta iPerspective TM Suite 2.0 - a rapid application development workbench focused on enterprise application integration. This Suite uses a powerful template based integration component generation engine that creates, builds and deploys integration components automatically, drastically reducing the effort required in enterprise application integration projects.

CONCLUSION

Company enjoy monopoly in some segment of its product portfolio. Company also hold strong international geographical presence having tie up with different international entity. Looking at financials of the company on quarter on quarter basis company has reported marginal lower numbers for the quarter ended sep 2010 as compare to the number for the quarter ended june 2010. On revenue front company has reported revenue of Rs. 329.48 Cr for the quarter ended September 2010 as compare to 335.65 Cr in previous quarter and a net profit of Rs. 96.62 Cr for the quarter ended September 2010 as compare to Rs. 103.50 Cr in previous quarter. IT stocks witness good gain in past few weeks on back of that ROLTA has shown inverse movement. Going forward we are expecting ROLTA to post strong numbers for the quarter ended December 2010 and expect to deliver strong growth both in top line and in bottom line as well with this view we are recommending to accumulate the stock at current market price with a target of Rs. 200 with a time horizon of twelve months.

Buy EDSERV SOFTSYSTEMS LTD.

2010-11-27T20:10:00.001-08:00

Buy Rs. 192.60 Target Rs. 250

INTRODUCTION

Edserv SoftSystems Ltd was incorporated as a private limited company on March 13, 2001 under the Companies Act, 1956 as Lambent Systems Private Limited vide Certificate of Incorporation issued by the Registrar of Companies, Chennai. The name of the company was changed to Lambent Softsystems Private Limited with effect from December 5, 2001 and a fresh certificate of incorporation was obtained from Registrar of Companies, Chennai. Subsequently the name was changed to Edserv Softsystems Private Limited and a fresh certificate of incorporation consequent to change of name was obtained on January 9, 2008. The name was further changed to Edserv Softsystems Limited upon conversion into public limited company and a fresh certificate of incorporation was obtained on April 22, 2008.

EdServ is India's first 4th generation education company that uses technology to efficiently synchronize manpower demand and supply in number and skills right from development to deployment. The size of India's addressable market, favorable demography, growing acceptance of technology-aided learning, and EdServ’s innovative to-be-patented Humanware Education And Deployment System (HEADS) coupled with its trademark content should enable rapid growth. Its business model is scalable nationally and internationally.

EdServ Softsystems was established with an objective of providing niche training solutions, customised software solutions, and placement consulting on contract as well as permanent basis to both Corporate and Institutional clients. The company successfully provided staffing solutions to premier clients during 2002 to 2004 viz., TI Group, TVS Group, Office Tiger, KSB Pumps, Infosys Technologies, HCL Technologies, Shasun Chemicals, Hexaware Technologies, Ashok Leyland, Seshasayee Paper & Boards among others.

EdServ has over 1,000 man years of experience in niche and cutting-edge technology training and has designed and implementationed training products in IT as well as non-IT having served various corporate and institutions requirements in soft skills, IT skills, among others.

Lambent, since its inception in 2001, has been very active in staffing solutions and customised resource solutions. Lambent offers in both contractual as well as permanent basis, the manpower on-board to its value based clients.

PRODUCTS AND SERVICES OFFERED BY THE COMPANY

EdServ has been in the business of training, software development, and staffing solutions apart from consulting services since its inception.

Heads Model

4th generation education model, as the name suggests, brings back the excellence in education by implementing the same with a purpose; 4th generation insists on a matured model that is always linked to a placement for every such aspirant for a career after matching their skill levels and linking them to a job directly through a client supported deployment system.

ELMAQ

In year 2007, Lambent Softsystems Private Limited acquired ELMAQ, the premier IT Education and Training business, to cater to job-oriented niche training solutions to a wide spectrum of industry verticals.

EdServ has over 50 people working on various domains and training technologies like J2EE, .NET, Software Testing, Multimedia, Networking, among others. EdServ has over 35 centers spread all over south offering Tech Training in the brand of ELMAQ.

Lambent (EdServ)

Lambent (EdServ) provides ERP solutions as well as Database maintenance services in a 24x7 zero-downtime based enterprise-wide continuous availability framework in both onsite and off-site models. Lambent (EdServ) also provides Staffing solutions and customized resource solutions apart from niche training post-implementation of systems.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The industry that the company is in, is largely Indian Education, and the labour and employability. This is broadly classified into Learning and Placement as business streams.

In the learning space, the industry is further classified into Formal Education and job oriented Vocational Training. Formal education industry has schools and colleges which are either run by Government or aided by Government or Privately run.

Further, the higher education commonly referred as college education could be imparted either through regular class room based college learning or through distance learning streams, technology-led remote learning streams. Under these streams we have Engineering / professional education stream as well as Arts / Science / Commerce stream.

OPPORTUNITIES

MES and PPP

Ministry of Labour & Employment in pursuance to excellence in vocational training has developed a new strategic framework for skill development namely 'MODULAR EMPLOYABLE SKILLS (MES)' framework in close consultation with industry, State Governments and experts. MES is 'Minimum Skills Set' which is sufficient to get an employment in the labour market. These can be learnt through professional training institutes or through professionals in formal and non-formal way for one's gainful employment

ENGINEERING STUDENTS AND COLLEGES

There is an upsurge in the number of students applying for professional education, engineering in particular. This is due to the fact that Indians are preferred in US based software companies for programming and testing. US entry requires 12+4 years of formal education and the preferred degree is an Engineering in any discipline yet Computer Science or Electronics & Communication in particular. This upsurge in interest for engineering degree has resulted in mushrooming Engineering colleges in Southern India and also in Maharashtra / Gujarat.

BOTTOM OF THE PYRAMID - THE REAL INDIA

Government provides education to poor, the bottom of the pyramid, through schools and colleges. The current system of education has huge gaps in teaching, research and development, quality of infrastructure, teacher-student ratios, expenditure to technological aids, performance, management, metrics, career seedings, industry interactions in schools and in higher education. This leads to many of the secondary pass-outs and degree pass-outs lacking the much needed Softskills or personality skills and also the industry orientation and employability.

THREATS

Intellectual Property Thefts, Long delays in Government approvals and payment delays. Stiff competition on pricing, Overall economic slowdown resulting in downsizing of workforce by Private Sector are the threats that would delay the success of the business model or impact the revenues and profits if not handled swiftly with creative product upgrades and sales strategies.

OUTLOOK

4th GENERATION EDUCATION LINKED TO CAREERS

EdServ is world's first 4th generation education company with a vision to bring a better education ecosystem worldwide. EdServ uses technology to efficiently synchronize manpower demand and supply in number as well as in skills. EdServ works from manpower development to deployment integrated end-to-end in a seamless partner-driven network. EdServ's education is Skill Matched, Assessment Driven, Industry vetted, Need based, Job linked model in web based LMS called LAMPS portal, a proprietary engine running in EdServ's private web network.

EdServ addresses wider domains and scale mapping demand-supply. The company focuses on employability by seeding skills progressively and focuses on bridging the Industry-Academics divide.

CONCLUSION

Company has reported strong growth on net profit front. Net profit no quarter on quarter basis has gone up from 6.89 Cr to 11.14 Cr. On quarter on quarter basis net profit gone up by whopping 61.68%. However on sales front sales has decline from 21.48 Cr to 20.11 Cr on quarter on quarter basis. Going forward we are expecting strong growth both in top line as well as in bottom line as well and on back of that we are recommending to accumulate the stock at current market price with a target of Rs. 250 with a time horizon of twelve months.