23014

ANALYSIS OF SMALL
SMALL-CAP
CAP COMPANIES BASED IN
SOUTH INDIA
Submitted in Partial Fulfillment of the Requirements for the
Award of Degree
of
MASTER OF BUSINESS ADMINISTRATION
By
S GANESH KUMAR
[23014]
April - June 2007
BHARATHIDASAN INSTITUTE OF MANAGEMENT
TIRUCHIRAPPALLI - 620014
S GANESH KUMAR 23014

ANALYSIS OF SMALL-CAP
COMPANIES BASED IN SOUTH INDIA
2007
ACKNOWLEDGEMENT
I owe my thanks to Mr K Ramkumar, Regional Head – South [Investment Banking] for giving
me the opportunity to work with M/s RELIGARE SECURITIES. I also express my sincere gratitude
to Mr Alex T Koshy, Manager [Investment Banking] for his guidance and support to complete
my project successfully.
I would also like to thank Prof. Dr. Y Lakshman Kumar and BIM for helping me in getting this
project.

CONTENTS
1. SYNOPSIS
2. RELIGARE – COMPANY PROFILE
3. SCOPE OF THE PROJECT
4. INTRODUCTION
a. FUNDAMENTAL ANALYSIS
b. TECHNICAL ANALYSIS
c. TECHNICAL v/s FUNDAMENTAL ANALYSIS
5. ANALYSIS OF COMPANIES

SYNOPSIS
This project aims at preparing a preliminary fundamental analysis report on 40 listed companies
whose market capitalization range between Rs. 50 Cr to Rs. 150 Cr and geographically located
in South India. The companies span across ten sectors viz., Auto Ancillary, Textiles, IT & ITeS,
Construction, Cement, Media & Entertainment, NBFC, Food Products, Healthcare & Hospitals
and Tourism & Hotels.
It involves a thorough analysis of the Company’s Background, History, Promoter and
Shareholder details, Business of Operation, Shareholding Pattern, the Bombay Stock Exchange
details of its share, its Trading History in BSE during the 3 month period of Jan – Mar ’07 and
the Company’s Financials for the past four years. An overview of each sector was also prepared
by highlighting the Industry Performance, Government’s Support & Initiatives, Investment
Activities and the Future Trend of the industry.
The scope of the project is limited only to the analysis of the past performance and does not
involve any projection of the future cash flows or valuation of any particular company.

RELIGARE – COMPANY PROFILE
Religare, a Ranbaxy promoter group company, is one of the fastest growing integrated financial
services institutions. The company offers a large and diverse bouquet of services ranging from
equities, commodities, insurance broking, wealth advisory, portfolio management services,
personal finance services, Investment banking and institutional broking services. The services
are broadly clubbed across the following three key business verticals,
• Retail
• Wealth management
• Institutional spectrum
Religare Enterprises Limited is the holding company for all its businesses being operated
through its various subsidiaries like Religare Securities Ltd, Religare Finvest Ltd, Religare Wealth
Management Services Ltd, Religare Capital Markets Ltd, Religare Finance Ltd, Religare
Insurance Holding Co Ltd, Religare Realty Ltd, Religare Insurance Broking Ltd, Religare Venture
Capital Ltd and Religare Commodities Ltd.
Religare’s retail network spreads across the country with its presence in more than 900
locations across more than 300 cities and towns. Having spread itself fairly well across the
country they are also planning to go global.

SCOPE OF THE PROJECT
The project aims at giving a fundamental overview of 40 listed companies spanning across ten
sectors, highlighting the Company’s History, Business of Operation, Income Statement for the
past four years and its Shareholding Details. It also gives a glimpse of the different sectors to
which the companies analyzed herewith belong to. The companies whose market capitalization
range between Rs.50 Cr to Rs.150 Cr and those geographically located in South India were only
selected. It does not involve in the projection of future cash flows or valuation of any particular
company.
The financial data highlighted are based on the latest financial results, balance sheet and
quarterly results as on 15 May 2007, available in the BSE & respective company websites. Stock
price data is the closing price at Bombay Stock Exchange (BSE) on the respective dates
mentioned therein.

INTRODUCTION
Preliminary analysis report is prepared to give an overview about the companies whose
performance is to be tracked and accordingly prepare detailed research reports with the
intention to help the investors and institutions wisely invest their money in the capital market.
In general, company analysis is done on two bases
a) Fundamental Analysis
b) Technical Analysis
Fundamental Analysis
Researchers have found that stock price changes can be attributed to the following
factors
Economy wide factors 30-35 percent
Industry factors 15-20 percent
Company factors 30-35 percent
Other factors 15-25 percent

Based on the above, a common procedure of fundamental analysis involves the
following three step analysis
Economy - Understanding the macro-economic environment and its developments
Industry - Analyses the prospect of the industry to which the company belong
Company - Assessing the projected performance and the inherent value of its shares
Economic Analysis
Economic Analysis looks into the micro and macro aspects of the economy from global and
national level. This analysis looks into
The global economy

Central Government policy
a) Fiscal policy
b) Monetary policy
c) Supply side police
Macroeconomic analysis
a) Gross Domestic Product
b) Industrial growth rate
c) Agriculture and monsoon
d) Savings and investments
e) Government budget
f) Money supply
g) Price level and inflation
h) Interest level
i) Foreign investment

Industry Analysis
Industrial analysis is concerned with the basics of industry analysis. This analysis can be done in
three stages.
Industry life cycle analysis

Study of the structure and characteristics of an industry
Profit potential of the industry
Company Analysis
Company analysis is the last leg in the economy-industry-company analysis sequence. It may be
done in two stages.
Study of the financials

Study of the other factors
Some of the important indicators used in this analysis are,
Earnings
It is often said that earnings are the "bottom line" when it comes to valuing a company's stock
and indeed fundamental analysis emphasizes more on a company's earnings. Earnings are the
profit or loss that a company makes after deducting all its expenses. During a specific period of
time, all public companies are required to report their earnings on a quarterly basis. Earnings
are important to investors because they give an indication of the company's expected dividends

and its potential for growth and capital appreciation. That does not necessarily mean, however,
that low or negative earnings always indicate a bad stock.
Earnings Per Share [EPS]
Comparing total net earnings of various companies is usually not a good idea, since net earnings
numbers don't take into account how many shares of stock are outstanding (in other words,
they don't take into account how many owners you have to divide the earnings among). In
order to make earnings comparisons more useful across companies, fundamental analysts
instead look at a company's earnings per share (EPS). EPS is calculated by taking a company's
net earnings and dividing by the number of outstanding shares of stock the company has.
P/E Ratio
EPS is a great way to compare earnings across companies, but it doesn't tell you anything about
how the market values the stock. That's why fundamental analysts use the price-to-earnings
ratio, more commonly known as the P/E ratio, to figure out how much the market is willing to
pay for a company's earnings. You can calculate a stock's P/E ratio by taking its price per share
and dividing by its EPS. For instance, if a stock is priced at Rs.50 per share and it has an EPS of
RS.5 per share, then it has a P/E ratio of 10. [Or equivalently, you could calculate the P/E ratio
by dividing the company's total market cap by the company's total earnings; this would result in
the same number.] P/E can be calculated for the previous year ["trailing P/E"], for the current
year ["current P/E"], or for the coming year ["forward P/E"]. The higher the P/E, the more the
market is willing to pay for each dollar of annual earnings. Note that last year's P/E would be
actual while current year and forward year P/E would be estimates, but in each case, the "P" in

the equation is the current price. Companies that are not currently profitable [that is, ones
which have negative earnings] don't have a P/E ratio at all. For those companies we shall
calculate the price-to-sales ratio [PSR] instead
Book Value
The book value of a company is the company's net worth, as measured by its total assets minus
its total liabilities. This is how much the company would have left over in assets if it went out of
business immediately. Since companies are usually expected to grow and generate more profits
in the future, most companies end up being worth far more in the marketplace than their book
value would suggest. For this reason, book value is of more interest to value investors than
growth investors. In order to compare book values across companies, you should use book
value per share, which is simply the company's last quarterly book value divided by the number
of shares of stock it has outstanding.
Return On Equity [ROE]
It shows you how much profit a company generates in comparison to its book value. The ratio is
calculated by taking a company's profit after tax [after preferred stock dividends but before
common stock dividends] and dividing by its book value. It is used as a general indication of the
company's efficiency. In other words, how much profit it is able to generate given the resources
provided by its stockholders. Investors usually look for companies with ROEs that are high and
growing.

Technical Analysis
Technical analysis uses a variety of charts and calculations to spot trends in the market and
individual stocks and to try to predict what will happen next. Technical analysts don't bother
looking at any of the qualitative data about a company (for example, its management team or
the industry that it is in); instead, they believe that they can accurately predict the future price
of a stock by looking at its historical prices and other trading variables. Technical analysis
assumes that market psychology influences trading in a way that lets them predict when a stock
will rise or fall. Many technical analysts are also market timers, who believe that technical
analysis can be applied just as easily to the market as a whole, as to an individual stock.
Technical v/s Fundamental Analysis
While technical analysis concentrates on the study of market action, fundamental analysis
focuses on the economic forces of supply and demand that cause prices to move higher, lower,
or stay the same. The fundamental approach examines all of the relevant factors affecting the
price of a share in order to determine the inherent value of the same. Both these approaches
forecast the market and attempt to determine the direction in which the share prices are likely
to move. The fundamental analysis they study the cause of market movement, while in
technical analysis they study the effect.

ANALYSIS OF COMPANIES
SECTORS ANALYSED
1. AUTO ANCILLARY
2. TEXTILES
3. INFORMATION TECHNOLOGY
4. CONSTRUCTION AND REAL ESTATE
5. CEMENT
6. MEDIA AND ENTERTAINMENT
7. NBFC
8. FOOD PRODUCTS
9. HEALTHCARE AND HOSPITALS
10. TOURISM AND HOTELS

SECTOR OVERVIEW A
US $ [Bn]
40.00
Increasing trend in the 40
Turnover of the Auto
Component Sector.
35
30
25 18.10
U
20
15 10.00
10
5
0
3.10
T
'97-'98 '05-'06 '08-'09 '13-'14
Exports have grown by 28% to reach the current US $ 1.8 Bn

O
CURRENT SCENARIO Exports projected at US $ 5.9 Bn by FY09
AND PROJECTIONS 75% of Exports to Tier I OEMs and 25% to the aftermarket
Highly qualified Engineering Skills

THE INDIA ADVANTAGE

Manufacturing costs are less than the West by 25 – 30%
Thriving Domestic Automobile Industry A
Established Production Lines
Major OEMs like GM, FORD, VW, BMW etc setting up their
International Purchase Offices in India N
Lot of foreign auto makers are establishing their plants in India
INVESTMENTS Indian majors are scaling up from producing individual components C
to assemblies and systems
GOVERNMENT
Approval for 100% FDI in the sector I
Imports are free from licensing
INITIATIVES Reduction in the duty of raw material from 10% TO 5-7.5%
7.5%
Finalization of Autom
Automotive Mission Plan 2006-2016
2016 to make India the
preferred destination for design & manufacture of Automobile &
L
Automotive components
Increasing investments in production capacities

L
THE FUTURE Establishing partnerships in India & abroad
Merger & Acquisition of compan
companies overseas
A
Rising consumer base and affordable loans
THE CATALYST Domestic car market growing at over 16% R
Source: www.ibef.org
Y
COMPANIES
11.
1. UCAL FUEL SYSTEMS LTD
2. SAMKRG PISTONS AND RINGS LTD
3. RANE BRAKE LININGS LTD
4. IP RINGS LTD
5. INDIA MOTOR PARTS & ACCESSORIES LTD
6. INDIA NIPPON ELECTRICALS LTD
7. IGARASHI MOTORS INDIA LTD

May 17, 2007 SECTOR: AUTO ANCILLARY
UCAL FUEL SYSTEMS LTD
www.ucalfuel.com
REGISTERED OFFICE The Company
Raheja Towers UCAL Fuel Systems Ltd was incorporated as a public limited
Delta Wing Unit -705 company in the year 1989 and promoted by Carburetors Ltd in
177, Anna Salai, Technical and Financial Collaboration with Mikuni Corporation
Chennai - 600002 of Japan who is internationally renowned for manufacture of
fuel management products and related hardware products in
the passenger car segment. In 2005, UCAL acquired AMTEC
FACTORIES Precision Products Inc [APPI] of USA. UCAL Polymer Industries
Ltd and UCAL Machine Tools are its 100% subsidiary units.
Plant I - MM Nagar, Chennai
Plant II - Pondicherry The Business
Plant III - Gurgaon
With an annual sales turnover of more than Rs.300 Cr in FY06,
` UCAL Fuel Systems is majorly into manufacture of Carburettors
for both 2 & 3 wheelers, Throttle Body Assembly, Air Suction
Valve and Delivery Pipe Assembly. 90% of their sales revenue is
BSE CODE UCALFUEL generated from the above products. They are also into Fuel
BSE SENSEX 14299.71 Pumps, Filters, Electric Throttle and Genset Carburetors.
PRICE (BSE) 100.20
Mkt Cap (Cr) 139.23 AMTEC Precision Products manufactures precision machined
3M Avg Daily Vol 30092 parts and plastic moulded products for US Automotive and
52 Wk H/L 194 / 83 Non-Automotive Customers. UCAL Polymer Industries is into
FV 10 manufacture of rubber bonded parts which are fitted into
Source: BSE India
Secondary Air Suction Valves. UCAL Machine Tools is into
design of intricate multi cavity pressure die casting dies
for die cast products.
SHAREHOLDING PATTERN % They majorly supply to 4 wheeler manufacturers like Maruti,

Promoters 49 Hyundai, TATA Motors, General Motors and 2 wheeler
MF, FI, FII, Banks 5 manufacturers like Bajaj, TVS, Hero Honda, Yamaha, Suzuki,
Central / State Govt - Royal Enfield.
Free Float 46
Source: BSE India Promoters & Directors
Mr S Muthukrishnan is the Chairman. Mr K Jayakar is the vice

TRADING HISTORY Chairman & MD, Mr Hiromi Iida is the Joint MD and
Promoter Holdings 6852960 Mr.Sundararaman is the ED. Mr V Narayanan, Mr Hisataka
Public Holdings 7043040 Ikuta, Mr Masahiro Hayashida, Mr M R Sivaraman,
Jan-Mar 07 Avg Dly Vol 30092 Mr.N.Gomathinayagam, Mr Masaki Ikuta are the other
As % of Public Holdings 0.427 directors.
Source: BSE India

Remarks
The figures reported for the FY06 include an income of Rs.25 Cr from the divestment of shares in
Engelhard Environmental Systems India (P) Ltd and the financial results of APPI for the period Jun 15 ’05
to Mar 31, ’06. With sales growing every year the expenditure and the interest amounts also seem to be
growing, in turn reducing the profit margins. Without the above said Rs.25 Cr, the PAT for the FY06
would have been only Rs.12.50 Cr and the net profit margin would have dropped to 4.8% as against the
current 12.96%. However the profit in FY07 is projected to be Rs.18 Cr @ 6.05%.
The Auto and Auto Component industry growing at a CAGR of 16%# and the government extending its
support by way of free licensing & approvals for manufacturing and imports of auto components and
100% FDI in this sector, UCAL looks positive in the long run.
#
Source: ACMA (Auto Component Manufacturers Association) Report.
Others
HDFC Long Term Equity Fund is holding 3.57% of the total number of shares in the public category. The
company is listed in both BSE and NSE.
Financials
(all Fig in Rs Cr)
FY07E FY06 FY05 FY04

SALES 291.96 260.20 271.41 259.13
TOTAL INCOME 298.51 290.81 275.34 261.92
EXPENDITURE 255.64 222.38 225.27 204.59
PBDIT 42.87 68.43 50.07 57.33
DEPRECIATION 12.74 12.99 13.45 12.33
PBIT 30.13 55.44 36.62 45.00
INTEREST 7.99 5.99 0.46 1.08
PBT 22.14 49.44 36.16 43.93
TAX 4.07 11.74 10.40 12.62
PROFIT AFTER TAX 18.07 37.70 25.76 31.31
NO OF SHARES (Nos) 13896000 13896000 13896000 6948000
EQUITY CAPITAL 13.90 13.89 13.90 6.95
RESERVES AND SURPLUS 185.24 167.17 135.33 119.40
NETWORTH 199.14 181.06 149.22 126.34
CMP (Rs) 100.20 - - -
MKT CAP 139.24 - - -
P/E 7.70 - - -
EPS 13.01 27.13 18.54 45.06
NAV / Share (Rs) 143.31 130.30 107.39 181.84
NET PROFIT MARGIN 6.05% 12.96% 9.36% 11.95%
RONW 9.08% 20.82% 17.26% 24.78%
Source: BSE India, www.religareonline.com (FY 07E figures are annualized based on 9M ended Dec 06 results)

SAMKRG PISTONS AND RINGS LTD
www.samkrgpistonsandrings.com
CORPORATE OFFICE The Company

This Hyderabad based company was incorporated in the
1-201, Divya Shakti Complex year 1985 and promoted by Mr SDM Rao along with
7-1-58, Ameerpet Andhra Pradesh industrial Development Corporation.
Hyderabad – 500016 Later in 1986, they entered into a technical
collaboration with M/s Cheng Shing Piston Co Ltd of
Japan. This collaboration gained them the advanced
technology in Casting, Machining and Finishing of their
FACTORIES products and the necessary designs, drawings and
specifications of the plant machinery.
Plant I - Bonthapally, Hyderabad
Plant II - Varisam, Vizag The Business
Plant III - Akkivalasa, Vizag They are into manufacture of Pistons, Piston rings,
Gudgeon Pins and Circlips. The net sales revenue for
FY06 stood at Rs.78 Cr of which the Piston Pins
contributed 60% and Piston Rings contributed 39%. The
BSE CODE SAMKRG export sales accounted for 21% of the net sales. Their
BSE SENSEX 14299.71 major domestic clients are Bajaj, Honda, TVS, TATA
PRICE (BSE) 67.10 Motors, Kinetic, LML etc., and overseas clients are
Mkt Cap (Cr) 65.90 Deutz, Mahle, Piaggio, Knorr-Bremse, Motoco etc.
3M Avg Daily Vol 3483
52 Wk H/L 102 / 61.10 Promoters & Directors
FV 10 Mr S D M Rao, who is a mechanical engineer by
Source: BSE India
qualification is the CMD. Mr S Karunakar and Mr S
Kishore, who joined the company as apprentice
engineers in 1986 & 1990 respectively, are now the
Wholetime Directors. The other directors are Mr M N
SHAREHOLDING PATTERN % Thakkar, Mr S Madhava Rao, Mr V Chakrapani and
Promoters 66.34 Dr V Venkat Reddy.
MF, FI, FII, Banks 0.06
Central / State Govt - Remarks
Free Float 33.60 Though the profits dipped by 16% in FY06 due to
Source: BSE India
increase in Raw Material and other costs, currently they
have recovered and the profits have grown by 31% over
FY05. Further the sales had grown at a CAGR of 9.18%
over the past 3 years. Moreover, the Union Budget 2007
TRADING HISTORY being supportive in terms of eliminating the customs
Promoter Holdings 6514612 duty for importing R&D equipment and providing
Public Holdings 3305888 incentives to attract FDI, the sector seems to have a
Jan-Mar 07 Avg Dly Vol 3483 positive outlook in FY08.
As % of Public Holdings 0.105
Source: BSE India

Others
The company incurred a loss of Rs.0.95 Cr in losing a legal case in Italy and this had brought down the
FY07 Q3 net profits to Rs. 0.90 Cr which otherwise would have been Rs.1.85 Cr as against Rs.2.05 Cr in
FY06
Financials
(all Fig in Rs Cr)
FY 07E FY 06 FY 05 FY 04
SALES 87.43 77.57 79.93 67.18
TOTAL INCOME 87.53 78.21 80.53 67.58
EXPENDITURE 65.59 58.79 58.65 47.97
PBDIT 21.94 19.42 21.88 19.61
DEPRECIATION 10.68 10.79 10.38 9.23
PBIT 11.26 8.62 11.51 10.38
INTEREST 1.09 0.54 0.69 0.99
PBT 10.17 8.08 10.81 9.39
TAX 0.00 1.52 3.03 2.46
PROFIT AFTER TAX 10.17 6.56 7.78 6.94
NO OF SHARES (Nos) 9820500 9820500 9820500 9820500
EQUITY CAPITAL 9.82 9.82 9.82 9.82
NETWORTH 33.01. 32.07 31.35 34.70
CMP (Rs) 67.10 - - -
MKT CAP 65.90 - - -
P/E 6.48 - - -
EPS 10.36 6.68 7.92 7.06
NAV / Share (Rs) 33.61 32.66 31.93 35.33
RONW 30.83% 20.46% 24.81% 19.99%
Source: BSE India, www.religareonline.com (FY 07E figures are annualized based on 9M ended Dec 06 results)

RANE BRAKE LININGS LTD
www.ranebrakelinings.com

Established in the year 1964, Rane Brake Linings Ltd (RBL) is a
Maithri part of the Rane Group of Companies, which as a group, has
132, cathedral Road collaborations with TRW USA. RBL entered into a technical
Chennai and financial collaboration with a global player in friction
material manufacturing, M/s Nisshinbo Industries of Japan,
for manufacturing Asbestos free brake linings, Disc Pads and
Clutch Facings. They have three plants one each in Chennai,
FACTORIES Hyderabad & Pondicherry. In Aug ’05, RBL acquired 65% of
the share capital in Rane Die Cast Ltd.
Plant I - Chennai
Plant II - Hyderabad The Business
Plant III - Pondicherry RBL is into manufacture of Brake Linings, Disc Pads, Railway
Brake Blocks, Clutch Facings and Tractor Discs. In this segment
they are one of the market leaders and their annual sales
turnover has been Rs.157 Cr in FY06. They majorly supply to
Indian Railways, Ashok Leyland, Bajaj Auto, Ford, GM,
BSE CODE RANEBRAKE Hyundai, Mahindra, Maruti, TATA Motors, Eicher Motors, etc.
BSE SENSEX 14299.71
PRICE (BSE) 174.85 RDL has a plant at Medak District in Andhra Pradesh. With a
Mkt Cap (Cr) Rs. 126.15 9M sales turnover of Rs.5.45 Cr they are engaged in the
3M Avg Daily Vol 6530 manufacture of Aluminium Pressure Die Cast products mainly
52 Wk H/L 250 / 141 for auto component industry.
FV 10
Mr L Lakshman is the CMD and Mr L Ganesh is the Vice
Chairman. Mr S A Murali Prasad, Mr V Ramachandran, Mr S
SHAREHOLDING PATTERN % Sandilya, Mr D Vijay Mohan and Mr Anil Kumar V Epur are the
Promoters 43 other directors. Mr Kunihiro Toda is the nominee director
MF, FI, FII, Banks 14 from M/s Nisshinbo Industries Inc.
Central / State Govt -
Free Float 43 Remarks
Source: BSE India The sales growth was pegged at 13% in FY06 and at 11% in
the FY07E. The total income of Rs.152 Cr in FY05 includes
Rs.8.89 Cr raised from the sale of shares due to a
TRADING HISTORY restructuring at the group level. Otherwise the net profit for
Promoter Holdings 3101024 FY05 would have been close to Rs.11 Cr as against the
Public Holdings 4113956 reported Rs.19 Cr. However, the net profit has grown by 35%
Jan-Mar 07 Avg Dly Vol 6530 in FY06 and by 4% in FY07E compared to their respective
As % of Public Holdings 0.159 previous years. The reduction in growth rate is due to the
expenditure growing at a higher rate than the sales. However
Source: BSE India

they have very few competitors of their repute, though there may be many local players. With the
global auto manufacturers viewing India as an outsourcing base, the Exports are poised for growth and
its current investment in RDL together with the positive outlook of the entire auto component industry,
RBL’s revenues are expected to grow in FY08.
Financials
(all Fig in Rs Cr)

SALES 174.90 157.78 139.61 138.62
TOTAL INCOME 182.11 161.72 152.13 141.59
EXPENDITURE 153.48 133.97 120.83 111.75
PBDIT 28.63 27.75 31.31 29.84
DEPRECIATION 8.23 7.62 7.60 7.22
PBIT 20.40 20.12 23.71 22.62
INTEREST 2.47 1.07 1.02 1.85
PBT 17.92 19.05 22.69 20.77
TAX 3.62 5.28 3.61 5.16
PROFIT AFTER TAX 14.30 13.77 19.08 15.61
NO OF SHARES (Nos) 7214980 7214980 7214980 7214980
EQUITY CAPITAL 7.22 7.21 7.22 7.22
NETWORTH 119.78 105.48 97.47 84.11
CMP (Rs) 174.85 - - -
MKT CAP 126.15 - - -
P/E 8.82 - - -
EPS 19.82 19.09 26.45 21.63
NAV / Share (Rs) 166.01 146.19 135.09 116.58
RONW 11.94% 13.05% 19.58% 18.56%
Source: BSE India (FY 07 figures are annualized based on 9M ended Dec 06 results)

May 17, 2007 SECTOR: AUTOMOBILE ANCILLARY
IP RINGS LTD
www.iprings.com
The Company
Established in 1991, IP Rings was promoted together by India
Pistons Ltd, Simpson & Co, TAFE and Amalgamations Pvt Ltd
under a technical collaboration with Nippon Piston Ring Co
REGISTERED OFFICE Ltd, Japan. They have 7700 shareholders holding 70 lac fully
paid up equity shares.
Arjay Apex Centre
24, College Road The Business
Chennai 600006 With an annual gross turnover of Rs.56 Cr, they are into
manufacture of wide range of piston rings, gears and
synchrocones. They also manufacture Nodular Iron and Grey
FACTORY Cast Iron rings with wear resistant surface coatings. They
mainly supply to OEMs like TATA Motors, MUL, ALL, Hyundai,
D 11/12, Industrial Estate Eicher, Mahindra, HM, TVS, Royal Enfield etc., and to India
Maraimalai Nagar - 603209 Pistons Ltd and Nippon Piston Rings in the Aftermarket.
Kanchipuram Dist.
Promoters & Directors
BSE CODE IPRINGS Mr K V Shetty is the MD and Mr A Sivasailam is the Chairman.

BSE SENSEX 14299.71 Dr R Mahadevan, Mr Yorishige Maeda, Dr R Natarajan and Mr
PRICE (BSE) 90.40 P M Venkatasubramaniam are the Directors. Dr N
Mkt Cap (Cr) 63.66 Gowrishankar is the wholetime Director.
52 Wk H/L 157.65 / 76.10 Remarks
FV 10 The sales have been dipping since the beginning of this
Source: BSE India financial year and the profit margin had dropped from 10.55%
in FY06 to 7.60% in FY07. The staff cost has increased by 0.80
Cr over the previous year which is a major part of the loss. As
SHAREHOLDING PATTERN % such there has not been any YoY growth in the Gross Sales.
Promoters 52 The other expenditure remaining the same the profits have
MF, FI, FII, Banks 3 come down by almost Rs.1.50 Cr.
Free Float 45
Source: BSE India
TRADING HISTORY
Promoter Holdings 3649832
Public Holdings 3392315
Jan-Mar 07 Avg Dly Vol 4523
Source: BSE India

Financials
(all Fig in Rs Cr)
FY 07E FY 06 FY 05 FY 04
NET SALES 48.05 48.47 44.24 41.22
TOTAL INCOME 48.28 48.72 44.86 42.39
EXPENDITURE 38.03 36.79 34.37 32.22
PBDIT 10.25 11.93 10.50 10.17
DEPRECIATION 4.33 3.83 3.00 2.95
PBIT 5.91 8.10 7.50 721.35
INTEREST 0.51 0.35 0.16 0.12
PBT 5.40 7.75 7.34 7.09
TAX 1.75 2.64 2.35 2.30
PROFIT AFTER TAX 3.66 5.11 4.99 4.80
NO OF SHARES (Nos) 7042147 7042147 7042147 7042147
EQUITY CAP 7.04 7.04 7.04 7.04
NETWORTH 43.10 40.80 38.51 35.91
CMP (Rs) 90.40 - - -
MKT CAP 63.66 - - -
P/E 17.66 - - -
EPS 5.19 7.26 7.09 6.81
NAV / SHARE (Rs) 61.21 57.94 54.69 50.99
RONW 8.48% 12.53% 12.97% 13.36%
Source: BSE India, www.religareonline.com (FY07 figures are annualized based on 9M ended Dec 06 results)

INDIA MOTOR PARTS & ACCESSORIES LTD
www.impal.net

Established in the year 1954, IMPAL was started as a TVS
Sundaram Towers, III Floor group company engaged in the sales and distribution of Auto
46, Whites Road components. They have approximately 7000 shareholders
Chennai 600014 who hold 41.59 lac fully paid up equity shares.
The Business
BSE CODE IMPAL The core business of this company is sales and distribution of
BSE SENSEX 14299.71 automobile spare parts and accessories. Over an annual sales
PRICE (BSE) 200.75 turnover of Rs. 227 Cr, they deal with products of more than
Mkt Cap (Cr) 83.51 50 manufacturers. A few of them are Brakes India Ltd, Delphi
3M Avg Daily Vol 1675 TVS Ltd, Finolex Cables, Fenner, Gulf Oil, Pricol, Rane Group
52 Wk H/L 280.10 / 172 and all the TVS group companies.
FV Rs.10
Source: BSE India They are one of the few all India distributors of motor parts
dealing with engine group components, brake systems,
fasteners, radiators etc. They cater to more than 35000
SHAREHOLDING PATTERN % dealers across the country.
Promoters 47
MF, FI, FII, Banks - Promoters & Directors
Central / State Govt - Mr S Naryanan is the Chairman and Mr N Krishnan is the
Free Float 53 Managing Director. Mr S Ram, Mr V Gopalakrishnan, Mr
Source: BSE India Ananth Ramanujam and Mr S Ravindran are the other
directors.
Remarks
TRADING HISTORY During the period FY04 to FY07E, they have grown at a CAGR
Promoter Holdings 1952740 of 5.61%. The net profit has grown by 14% to Rs.10 Cr over
Public Holdings 2207060 the FY06. The net profit margin dipped to 4.34% in FY06
Jan-Mar 07 Avg Dly Vol 1675 compared to 4.70% and 4.72% in FY05 and FY04 respectively.
As % of Public Holdings 0.076 As reported by their Chairman, the reason for the dip in profit
Source: BSE India margins could be due to pressure on sales price as a result of
increased competition. However this year they have increased
to 4.48%, though it is a very marginal increment.

Financials
(all Fig in Rs Cr)

SALES 227.14 207.07 213.50 192.82
TOTAL INCOME 230.07 208.80 216.00 195.04
EXPENDITURE 213.99 194.39 200.08 180.22
PBDIT 16.07 14.40 15.92 14.82
DEPRECIATION 0.68 0.64 0.75 0.79
PBIT 15.39 13.77 15.17 14.03
INTEREST 0.02 (0.06) 0.00 0.00
PBT 15.38 13.83 15.17 14.03
TAX 5.07 4.76 5.02 4.83
PROFIT AFTER TAX 10.31 9.07 10.15 9.20
NO OF SHARES (Nos) 4159800 4159800 4159800 2080000
EQUITY CAPITAL 4.16 4.16 4.16 2.08
RESERVES & SURPLUS 73.98 67.24 61.49 56.74
NETWORTH 78.14 71.40 65.65 58.82
CMP (Rs) 201.00 - - -
MKT CAP 83.61 - - -
P/E 8.11 - - -
EPS 24.78 21.80 24.40 44.23
NAV / Share (Rs) 187.86 171.63 157.81 282.78
RONW 13.19% 12.70% 15.46% 15.64%
Source: BSE India, www.religareonline.com (FY 07 figures are annualized based on 9M ended Dec 06 results)

INDIA NIPPON ELECTRICALS LTD
www.indianippon.com

INEL was incorporated in 1984 and converted into a joint
Aalim Centre, II Floor, venture in 1986 between Lucas Indian Service Ltd, a wholly-
82, Radhakrishnan Salai owned subsidiary of Lucas-TVS Ltd and Kokusan Denki Co. Ltd,
Mylapore Japan - a group company of Hitachi Japan. In Apr ’06, INEL has
Chennai – 600004 invested Rs. 12 Cr in PT Automotive Systems Indonesia and
acquired 99.97% of the equity share capital.
The Business
FACTORIES They are into manufacture of Electronic Ignition Systems for
two-wheelers, three wheelers and portable engines. In FY06
Plant I - Hosur, TN the annual sales turnover stood at Rs. 168 Cr. 90% of their
Plant II - Pondicherry revenues come from sales to the two & three wheeler
Plant III - Rewari, Haryana segment. INEL has three plants one each in Hosur (TN),
Pondicherry and Rewari (Haryana).
They majorly supply to TVS Motors, Hero Honda, Yamaha,

Bajaj Auto, LML, Royal Enfield, Kinetic Motors, Honda Motors,
BSE CODE INDIANIPPON Hero Motors in the two wheeler segment and to others like
BSE SENSEX 14299.71 Piaggio, Lombardini, Birla Power Solutions, Greaves Cotton,
PRICE (BSE) 185.90 Honda SIEL Power Products and Kokusan Denki Co.
Mkt Cap (Cr) 150.19
3M Avg Daily Vol 1586 Promoters & Directors
52 Wk H/L 295 / 178.20 Mr T K Balaji is the Chairman and Mr Seshadri, Mr R D Flint,
FV 10 Mr K R Anandakumaran Nair, Mr K G Raghavan, Mr H Nanjo,
Source: BSE India Mr R Vijayaraghavan, Mr K N Ramaswami, Mr A Terasaki are
the other directors.
SHAREHOLDING PATTERN % Remarks

Promoters 67 The net profit declined (by 27%) from Rs.25 Cr in FY04 to
MF, FI, FII, Banks 6 Rs.18.5 Cr in FY05 due to increase in metal prices (Steel &
Central / State Govt - Copper). Though it increased (by 9.64%) to Rs.20 Cr in FY06,
Free Float 27 the profit for FY07E is only Rs.19 Cr, which is lower than the
Source: BSE India previous year. The losses may be due to higher rate of
increase in expenditure than the rate of increase in sales.
However, the company having Rs.104 Cr as Reserves &
TRADING HISTORY Surplus and its recent investment in PT Automotive Systems
Promoter Holdings 5369020 together with the auto component industry growing at 16%
Public Holdings 2710060 (Source: ACMA Report), the export revenues shall increase
Jan-Mar 07 Avg Dly Vol 1586 and the company should turn around in FY08.
Source: BSE India

Financials
(all Fig in Rs Cr)

SALES 173.27 167.78 175.09 173.46
TOTAL INCOME 178.59 173.21 177.52 179.54
EXPENDITURE 152.28 144.36 147.34 139.63
PBDIT 26.31 28.85 30.18 39.91
DEPRECIATION 3.40 4.28 4.36 4.76
PBIT 22.91 24.57 25.82 35.15
INTEREST 0.20 0.11 0.10 0.13
PBT 22.71 24.46 25.72 35.02
TAX 3.41 4.21 7.25 10.03
PROFIT AFTER TAX 19.29 20.25 18.47 24.99
NO OF SHARES 8079080 8079080 8079080 8079080
EQUITY CAPITAL 8.08 8.08 8.08 8.08
NETWORTH 131.52 112.23 98.88 88.02
CMP (Rs) 185.90 - - -
MKT CAP 150.19 - - -
P/E 7.78 - - -
EPS 23.88 25.06 22.86 30.93
NAV / Share (Rs) 162.79 138.91 122.39 108.95
RONW 14.67% 18.04% 18.68% 28.39%
Source: BSE India, www.religareonline.com (FY 07 figures are annualized based on 9M ended Dec 06 results)

IGARASHI MOTORS INDIA LTD
www.igarashimotors.co.jp
HEAD OFFICE The Company

Igarashi Motors India Ltd (formerly as CG Igarashi Motors Ltd)
1-2, Tode Honcho, Saiwai Ku, was established in the year 1993 in Chennai, as a joint
Kawasaki Shi, Kanagawa, venture between Crompton Greaves Ltd, Igarashi Electric
Japan Works Ltd of Japan and International Components
Corporation of USA. Headquartered in Kawasaki, Japan they
operate across the globe in Hongkong, China, USA and
Germany.
FACTORY ADDRESS - INDIA
The Business
Plot B 12 – B15 With employee strength of 400, Igarashi Motors India Ltd is
Phase II into development, production and sales of DC Motors, their
Mepz, Tamabaram accessories and assembly service like end cap, case and
Chennai 600045 armatures. They produce about 2 mn pcs per month. Igarashi
Electric India (P) Ltd is into manufacture of Motor systems,
Transformers and Carrier assemblies. With 80 employees they
BSE CODE CGIGARSH produce about 5 lac pcs per month. Igarashi Technologies (P)
BSE SENSEX 14299.71 Ltd provides the technology services for motors and motor
PRICE (BSE) 101.8 systems engineering.
Mkt Cap (Cr) 141.24
3M Avg Daily Vol 29655 Their motors find application in various home and industrial
52 Wk H/L (Rs) 187 / 91.10 appliances such as Grass Clippers, power tools, instant
FV (Rs) 10 cameras, office automation systems, model race cars etc.
Source: BSE India
Mr K K Nohria is the Chairman and Mr P Mukund is the MD.
SHAREHOLDING PATTERN % Mr G N Mani, Mr T Igarashi, Mr Keiichi Igarashi, Mr K Igarashi,
Promoters 60 Mr C P Dusad are the other directors.
MF, FI, FII, Banks 19
Free Float 21 The net profit declined (by 69%) from Rs. 316 Cr in FY05 to
Source: BSE India Rs.99 Cr in FY06 mainly due to steep increase in the basic raw
material (Steel & Copper Wires) prices. However, in FY07,
they have adopted various measures like insourcing of raw
TRADING HISTORY Nos materials, improving productivity and renegotiating with the
Promoter Holdings 8323675 customers to address the issue of cost escalation.
Public Holdings 5550707 Consequently, in FY07E the sales turnover registered a growth
Jan-Mar 07 Avg Dly Vol 29655 of 39% over FY06 and the net profit has grown at a CAGR of
As % of Public Holdings 0.534 26% for the period FY05 to FY07E.
Source: BSE India

Others
In the public category, Goldman Sachs Investments Mauritius I Ltd, T Rowe Price New Asia Fund and JF
India Fund are holding 6.39%, 6.97% and 1.52% of the total number of shares.
Financials
(all Fig in Rs Cr)

SALES 244.24 175.26 103.`88 50.56
TOTAL INCOME 248.02 182.26 110.14 58.37
EXPENDITURE 226.17 170.50 99.56 49.26
PBDIT 21.85 11.76 10.59 9.12
DEPRECIATION 8.50 6.00 4.26 3.83
PBIT 13.35 5.77 6.33 5.28
INTEREST 7.39 4.13 2.51 2.31
PBT 5.96 1.63 3.82 2.97
TAX 0.91 0.64 0.65 1.12
PROFIT AFTER TAX 5.04 0.99 3.16 1.85
NO OF SHARES (Nos) 13874382 13874382 11900000 11900000
EQUITY CAPITAL 13.87 13.87 11.90 11.90
NETWORTH 79.40 74.35 34.14 32.99
CMP (Rs) 101.80 - - -
MKT CAP 141.24 - - -
P/E 28.00 - - -
EPS 3.64 0.71 2.66 1.55
NAV / Share (Rs) 57.22 53.59 28.69 27.73
RONW 6.35% 1.33% 9.26% 5.60%
Source: BSE India www.religareonline.com (FY 07 figures are annualized based on 9M ended Dec 06 results)

SECTOR OVERVIEW
INDIA’s TEXTILE ECONOMY INDIA’s SHARE IN WORLD TEXTILE TRADE
US $ [Bn] %
85 10
100 12
8
9
37 4
50 6
3
0 0
FY06 FY10 FY06 FY10 FY15
T
Production of fabrics increased by 9.6% in FY06 and for the period
CURRENT SCENARIO ended Nov 06 it has increased by 8.2% over the corresponding period
AND PROJECTIONS in the previous year
Expected to achieve an export value of US $ 50 Bn by FY10
E
Strong raw material base and skilled manpower X
THE INDIA ADVANTAGE Large production capacity
o 21% of the world’s spinning capacity
o 33% of the world’s weaving capacity
Flexibility in production process T
Long term experience with US/EU clients
Indian firms are lookin

looking at acquiring companies abroad
I
INVESTMENTS They are augmenting the capacities to meet the booming retail sector
and US demand
L
100% FDI in the sector
GOVERNMENT
INITIATIVES

Abolition of the Textile Committee CESS
Reduction in customs duty on import of machinery E
Increased the Technology Upgradation Fund [TUF] from US $ 124 Mn
in FY07 to US $ 211 Mn in FY08
Ministry of Textiles proposes 50 new textile parks of which 24 have
been
en initiated with an estimated investment of US $ 232 Mn
S
The growth rate of the industry is pegged at 11%
THE CATALYST The boom in the domestic retail sector by the proposed entry of
foreign retail giants like Wal
Wal-Mart, Tesco etc.

COMPANIES
1. AMBIKA COTTON MILLS LTD
2. CHESLIND TEXTILES LTD
3. GANGOTRI TEXTILES LTD
4. KITEX GARMENTS LTD
5. LOYAL TEXTILES LTD
6. BANNARI AMMAN SPINNING MILLS LTD
7. SUPER SPINNING MILLS LTD

May 18, 2007 SECTOR: TEXTILES
AMBIKA COTTON MILLS LTD

In 1988, Ambika Cotton Mills was promoted by
9A, Valluvar Street Mr.P.V.Chandran, as a private limited company based out of
Sivanandha Colony Coimbatore and later in 1994, it was converted into a public
Coimbatore 641012 limited company.
The Business
FACTORIES The company is into manufacture of premium quality cotton
yarn for hosiery, T Shirts and cotton shirts. Headquartered in
Plants 1 - 4 Dindugul, TN Coimbatore, their production facilities are located in Dindigul.
They have an installed capacity of 66672 spindles and as a
part of the government’s TUF [Technology Upgradation Fund]
BSE CODE AMBIKCO Scheme, an expansion plan for additional 43200 spindles is in
BSE SENSEX 14303.41 progress and is expected to be completed by Sep 07. The total
PRICE (BSE) 132.75 installed windmill capacity accounts to 13MW. In FY06, the
Mkt Cap (Cr) 77.99 annual sales turnover was Rs.105 Cr, 93% of which is
3M Avg Daily Vol 11914 generated by Cotton Yarn Segment.
52 Wk H/L 266 / 120
FV 10 Promoters & Directors
Source: BSE India Mr P V Chandran is the CMD and he was instrumental in
promoting this company. Mr K N Sreedharan,
Mr.K.Venakatachalam, Mr D Balasundaram are the directors
SHAREHOLDING PATTERN % of the company. Mr K Davidson, Mr Srinivas Baratam and
Promoters 31 Mr.R Srikanth are the Nominee Directors.
Free Float 65 FY07E figures compared to FY06
Source: BSE India • Sales has grown by 38%
• Sales grew at a CAGR of 18% (FY04-FY07E)
• PAT has increased by 24%
TRADING HISTORY • Net Profit Margin slipped from 17.82% to 16.16%.
Public Holdings 4075614 The net profit margin, though declined, is only marginal.
Jan-Mar 07 Avg Dly Vol 11914 However the overall sales and profits have been growing
As % of Public Holdings 0.292 consistently over the past four years. With the textile industry
Source: BSE India booming and support from the government in terms of
funding [TUF], tax concessions and setting up of Textile Parks,
revenues of Ambika Cotton Mills Ltd are expected to grow.

Others
On May 27, 2005, the company allotted 875000 equity shares to Ascent India Fund of UTI Venture Funds
Management Company Pvt Ltd who is now funding a part of the company’s expansion plan.
Financials
(all Fig in Rs Cr)

SALES 144.64 104.90 84.83 87.82
TOTAL INCOME 145.45 106.43 87.12 90.02
EXPENDITURE 99.12 71.04 64.34 67.64
PBDIT 46.33 35.39 22.78 22.38
DEPRECIATION 11.44 8.52 5.54 4.76
PBIT 34.89 26.87 17.24 17.62
INTEREST 8.59 6.29 4.01 4.92
PBT 26.31 20.58 13.23 12.70
TAX 2.80 1.61 0.55 0.39
PROFIT AFTER TAX 23.51 18.97 12.68 12.32
NO OF SHARES 5875000 5875000 5000000 5000000
EQUITY CAPITAL 5.88 5.88 5.00 5.00
NETWORTH 120.95 97.45 64.50 52.96
CMP (Rs) 132.75 - - -
MKT CAP 77.99 - - -
P/E 3.32 - - -
EPS 40.01 32.29 25.36 24.63
NAV / Share (Rs) 205.88 165.86 129.00 105.92
RONW 19.43% 19.47% 19.66% 23.25%
Source: BSE India (FY07E figures are annualized based on 9M ended Dec 06 results)

CHESLIND TEXTILES LTD
www.cheslind.co.in

Commencing business in the year 1992, Cheslind Textiles
B Muduganapalli was promoted as a 100% export oriented unit for
Hosur Taluk manufacture of combed cotton yarn. It established a
Krishnagiri District technical and marketing tie up with Zeiglertex, a swiss based
Bagalur – 635103 company. Headquartered in Bangalore their factory is in
Bagalur of Hosur district in TamilNadu.
The Business
FACTORY They are into manufacture of Combed Cotton Yarn and
knitted fabrics with an annual sales turnover of Rs.120 Cr.
Plant I - Bagalur, TN 99% of the revenue is from the sale of combed cotton yarn
and the balance is from the sale of knitted fabrics. 100% of
their production is export oriented. As at Mar ’06, they had
an installed capacity of 54432 spindles which they planned
to increase to 64512 spindles.
BSE CODE CHESLITE Promoters & Directors

BSE SENSEX 14303.41 Mr T N Arvind Reddy is the Chairman and Mr T N anand
PRICE (BSE) 21.60 Reddy is the Managing Director. Mr Prem Saigal, Mr A K
Mkt Cap (Cr) 49.88 Nair, Dr T N Vijayanarayana Reddy and Mr K Jagdeesh reddy
3M Avg Daily Vol 32572 are the other directors. Mr S senthil Kumar and Mr H
52 Wk H/L 24/13.5 Shivaram are the nominee directors.
FV 10
Source: BSE India Remarks
• No growth in Sales turnover in the last 3 years.

SHAREHOLDING PATTERN %
Promoters 57 • PAT & Net Profit Margins have declined from FY04.
MF, FI, FII, Banks -
Central / State Govt - Though FY06 appears to be a turnaround compared to the
Free Float 43 losses incurred in FY05 the company has not performed in
Source: BSE India the FY07 owing to the rise in fuel oil costs used in captive
generation of energy.
TRADING HISTORY However they have started to seek new markets by focusing
Promoter Holdings 13197717 on value added products like gassed yarn and super fine
Public Holdings 9896218 counts which they believe will improve their profitability. In
Jan-Mar 07 Avg Dly Vol 32572 any case the prospect of Cheslind Textiles depends on its
As % of Public Holdings 0.329 performance in FY08.
Source: BSE India

Others
TIDCO has a share of 8.63% of the equity capital in the public category. The newly constructed ring
doubling shed as a part of the company’s expansion plan suffered an accident on 13 April 2006 and the
damage is expected to be in the order of Rs.0.75 – Rs.1.00 Cr
Financials
(all Fig in Rs Cr)

SALES 125.77 126.44 137.56 117.71
TOTAL INCOME 128.80 126.75 138.47 120.02
EXPENDITURE 109.07 107.47 124.73 96.53
PBDIT 19.73 19.28 13.74 23.49
DEPRECIATION 8.68 8.04 7.62 7.55
PBIT 11.05 11.24 6.12 15.94
INTEREST 6.73 5.61 5.56 5.02
PBT 4.32 5.63 0.56 10.92
TAX 0.99 2.26 1.69 0.23
PROFIT AFTER TAX 3.33 3.37 -1.13 10.69
NO OF SHARES 23093935 23093935 23093935 23093935
EQUITY CAPITAL 23.09 23.09 23.09 23.09
NETWORTH 65.77 62.43 61.69 64.12
CMP (Rs) 21.60
MKT CAP 49.88
P/E 14.96
EPS 1.44 1.46 -0.49 4.63
NAV / Share (Rs) 28.48 27.03 26.71 27.77
NET PROFIT MARGIN 2.59% 2.66% -0.82% 8.91%
RONW 5.07% 5.40% -1.83% 16.67%
Source : BSE India, www.religareonline.com (FY07E figures are annualized based on 9M ended Dec 06 results)

GANGOTRI TEXTILES LTD
www.gangotritextiles.com

In the late 1980’s Mr Manoj Kumar Tibrewal, the Managing
473/2, PKD Nagar, Peelamedu Director of the company started his business as a cotton
Coimbatore 641004 waste recycler and trader in Kolkata. Later he promoted
Gangotri Textiles Pvt Ltd [GTPL] in 1989 and in 1993 he
converted it into Gangotri Textiles Ltd [GTL], a public limited
company. Headquartered in Coimbatore it has production
facilities in Tamil Nadu and Maharashtra. They are a
FACTORIES vertically integrated company with facilities for processing
yarn to manufacture of finished garments.
Plant 1-4 Coimbatore, TN
Plant 5-6 Dindugul, TN The Business
Plant 7-8 Erode, TN GTL manufactures Cotton Yarn, Elastic Yarn, Specialty Yarn,
Plant 9 Kohlapur, Maharashtra Fabric and Readymade Garments which find application in
Knitting, Weaving, Home Textiles, Industrial Fabrics,
Garments and Towels. In FY06, the annual sales turnover was
Rs.148 Cr, of which Rs.134 Cr was generated by the Cotton
Yarn segment and Rs.11.50 Cr by the Garment segment.
BSE CODE GANGOTEXQ They have an oil based power generation plant of 2MW
BSE SENSEX 14303.41 capacity and also have installed wind mills with a total
PRICE (BSE) 23.25 capacity of 3.3 MW to feed their energy requirements.
Mkt Cap (Cr) 75.83
52 Wk H/L 57.85 / 22.30 Mr.Manoj Kumar Tibrewal, MD, along with his brother
FV 10 Mr.Mohanlal Tibrewal, one of the Directors, promoted the
Source: BSE India company. Mr T A Ganesh is the Nominee Director and Mr C R
Swaminathan and Mr S Palaniswamy are the other directors.

Promoters 24 FY07E figures compared to FY06
MF, FI, FII, Banks 12 • Sales turnover has grown by 12%
Central / State Govt - • PAT has more than doubled
Free Float 64 • Net profit Margin has increased from 2.05% to 4.86%
Source: BSE India
With all the above figures showing an upward trend in the

recent past, the sales has not grown compared to FY04 and
TRADING HISTORY FY05. However with the boosting support from the
Promoter Holdings 7983457 government in various forms of concessions and fund
Public Holdings 24631177 allocations, the sector is expected to grow rapidly. Being a
Jan-Mar 07 Avg Dly Vol 53289 growing player in the readymade garment segment, GTL is a
As % of Public Holdings 0.216 growing company.
Source: BSE India

Financials
(all Fig in Rs Cr)

SALES 167.14 148.12 178.83 179.60
TOTAL INCOME 168.93 149.04 179.45 181.63
EXPENDITURE 139.84 127.26 159.52 158.42
PBDIT 29.09 21.78 19.93 23.21
DEPRECIATION 11.74 10.53 9.45 8.50
PBIT 17.35 11.25 10.48 14.71
INTEREST 9.14 6.37 5.28 5.76
PBT 8.22 4.88 5.20 8.95
TAX 0.00 1.83 1.95 2.32
PROFIT AFTER TAX 8.22 3.05 3.25 6.63
NO OF SHARES 32614634 19200000 4800000 4800000
EQUITY CAPITAL 16.31 9.60 4.80 4.80
NETWORTH 49.84 34.92 28.55 27.14
CMP (Rs) 23.25
MKT CAP 75.83
P/E 9.23
EPS 2.52 1.59 6.77 13.81
NAV / Share (Rs) 15.28 18.19 59.48 56.54
RONW 16.48% 8.74% 11.38% 24.43%

KITEX GARMENTS LTD
www.kitexgarments.com

Kitex Garments, a part of the Anna Group of Companies, was
Building No 9/536A, Kitex House established in the year 1992 and is based out of Kochi. It was
Kizhakkambalam promoted by Mr Sabu M Jacob, the Managing Director of the
Kochi, Kerela – 683562 company. The other group companies are Anna Aluminium
and Saras Spices.
CORPORATE OFFICE The Business

The company is involved in the business of manufacture and
III Floor, Kitex House export of garment. They are into standardized production as
Shenoy Chambers, Shanmugham Rd well as into customized manufacturing as per the customer
Kochi, Kerela – 682031 specifications. They export to countries like US, UK, Italy,
Greece, Denmark and Middle East. Some of their customers
are Wal Mart, J C Penny, Sarah Lee etc.
BSE CODE KITEXTX
BSE SENSEX 14303.41 Promoters & Directors
PRICE (BSE) 7.94 Mr Sabu M Jacob is the Chairman & Managing Director.
Mkt Cap (Cr) 37.72 Mr.M P Kuriakose, Mr M C Jacob, Mr Benni Joseph and
3M Avg Daily Vol 98102 Mr.C.Mohan are the other directors.
52 Wk H/L 14.90 / 7.80
FV 1 Remarks
Source: BSE India
• FY06 – Sales grew by 33% over FY05
• FY07E figures compared to FY06:
SHAREHOLDING PATTERN % Sales grew by 46%. (Rs.106 Cr to Rs.155 Cr)
Promoters 55 PAT increased by 150%.
MF, FI, FII, Banks - Net profit margin is at 6.78% from 3.97%.
Central / State - EPS has grown to 2.34 from 0.93.
Govt
Free Float 45 The company has been growing consistently since FY04 and
Source: BSE India their financials reflect their performance. On the whole this
company will definitely give good results in the long run.
TRADING HISTORY
Promoter Holdings 26253950 However with the rising rupee value against the USD, the
Public Holdings 21246050 export revenues might get reduced depending on their share
Jan-Mar 07 Avg Dly Vol 98102 of exports in the total sales.
Source: BSE India

Financials
(all Fig in Rs Cr)

SALES 154.67 105.83 79.59 39.16
TOTAL INCOME 163.91 111.60 80.34 39.46
EXPENDITURE 142.29 100.43 72.87 35.36
PBDIT 21.61 11.17 7.47 4.10
DEPRECIATION 1.87 1.43 0.79 0.66
PBIT 19.75 9.74 6.68 3.44
INTEREST 5.13 2.35 2.03 1.25
PBT 14.61 7.39 4.65 2.19
TAX 3.49 2.96 2.03 0.34
PROFIT AFTER TAX 11.12 4.43 2.62 1.85
NO OF SHARES 47500000 47500000 47500000 47500000
EQUITY CAPITAL 4.75 4.75 4.75 4.75
NETWORTH 24.45 13.33 9.44 6.81
CMP (Rs) 7.94
MKT CAP 37.72
P/E 3.39
EPS 2.34 0.93 0.55 0.39
NAV / Share (Rs) 5.15 2.81 1.99 1.43
RONW 45.48% 33.23% 27.75% 27.17%

LOYAL TEXTILE MILLS LTD
www.loyaltextiles.com

Loyal Textile Mills Ltd, based out of Kovilapatti in south
21/4, Mill Street Tamilnadu, is a part of the 70 year old Loyal Group who have
Kovilpatti, Tamil Nadu ventured into other businesses like Trading of Precision
628501 products and Banking. They run various educational
institutions in the name of their late founder Mr.Thiagaraja
Chettiar. They entered into a joint venture with M/s Gruppo
FACTORIES P&P Loyal Spa of Italy and M/s Loyal Dimco Grouppo S.A. of
Greece to market their products abroad.
Plant I Kovilpatti, TN
Plant II Sattur, TN The Business
Plant III, IV Cuddalore, TN Loyal Textile Mills is into manufacture and export of Yarns,
Woven & Knitted Fabrics and Garments like worker’s uniform.
With a sales turnover of more than Rs.300 Cr, 70% is by sale
BSE CODE LOYALTEX of Finished Cloth & Garments and 30% is by sale of Hosiery
BSE SENSEX 14303.41 Cloth, Yarn & Waste Cotton. They export to various countries
PRICE (BSE) 248.25 like EU, US, Egypt, Israel, Canada, Australia and the Far East.
Mkt Cap (Cr) 116.78
52 Wk H/L 344 / 170 Mr Manickam Ramaswami is the CMD. Mr M Sreenivasa Rao,
FV 10 Mr S Venkatramani, Mr C C Maniar, Mr R Poornalingam,
Source: BSE India Mr.M.S Ram, Mr K J M Shetty and Mr C Nallakrishnan are the
other directors.

Promoters 73
MF, FI, FII, Banks - FY07E figures compared to FY06.
Central / State Govt - • Sales grew by 17.24% over FY06 and the CAGR was
Free Float 27 16% during 2004 – ‘07
Source: BSE India • PAT decreased by 18.42%
• Net profit margin declined from 3.51% to 2.44%
TRADING HISTORY Though the sales has been growing every year, the net profit
Promoter Holdings 3427445 margin has not grown in the past three years inspite of the
Public Holdings 1276501 textile sector being in a high demand situation and with lot of
Jan-Mar 07 Avg Dly Vol 2423 support from the government. The decline may be due to the
As % of Public Holdings 0.190 expenditure increasing at a rate higher than the increase in
Source: BSE India sales. Considering all the above factors the profit of Loyal
Textile Mills does not seem to grow in the short term

Financials
(all Fig in Rs Cr)

SALES 363.65 310.17 302.66 232.49
TOTAL INCOME 367.37 313.56 305.59 235.64
EXPENDITURE 309.08 261.67 258.27 194.00
PBDIT 58.29 51.89 47.32 41.64
DEPRECIATION 33.92 28.32 20.98 16.39
PBIT 24.37 23.57 26.34 25.25
INTEREST 10.87 6.50 4.57 8.35
PBT 13.51 17.07 21.77 16.90
TAX 4.53 6.07 7.20 5.15
PROFIT AFTER TAX 8.97 11.00 14.57 11.75
NO OF SHARES 4703946 4703946 4703946 4703946
EQUITY CAPITAL 4.70 4.70 4.70 4.70
NETWORTH 92.71 83.73 74.81 62.33
CMP (Rs) 248.25 - - -
MKT CAP 116.78 - - -
P/E 13.01 - - -
EPS 19.08 23.38 30.97 24.98
NAV / Share (Rs) 197.08 178.01 159.05 132.51
RONW 9.68% 13.14% 19.47% 18.85%
Source: BSE India, www.religareonline.com (FY07E figures are annualized based on 9M ended Dec 06 results)

BANNARI AMMAN SPINNING MILLS LTD
www.bannaritex.com

Established in the year 1995, Bannari Amman Spinning Mills
252, Mettupalayam Road, Ltd is a part of the Bannari Amman Group of Companies
Coimbatore, Tamil Nadu headquartered in Coimbatore.
641043
The Business
With an annual sales turnover of Rs.86 Cr in FY06 they are
FACTORIES into manufacture of Yarn and Fabric. They have four
production facilities. 90% of their revenue is generated by the
Plant I, II Dindugul, TN sale of Yarn and 8% by Cotton waste.
Plant III Erode, TN
Plant IV Coimbatore, TN Promoters & Directors
Dr S V Balasubramaniam is the Chairperson and
Mr.S.V.Alagappan is the Vice Chairman. Mr S V Arumugam is
BSE CODE BANNARI the Managing Director and Mr S K Sundararaman is the
BSE SENSEX 14303.41 Executive Director. Mr A Senthil, Mr V Venkata Reddy,
PRICE (BSE) 84.40 Mr.S.V.Kandasami, Mr C S K Prabhu and Mr K N V Ramani are
Mkt Cap (Cr) 140.69 the other Directors.
52 Wk H/L 138.90 / 73.80 Remarks
FV 10
Source: BSE India FY07E figures compared to FY06
• Sales Grew by 21%
• PAT increased by 15.50%
SHAREHOLDING PATTERN % • Net profit Margin has declined from 17.44% to
Promoters 56 16.76%
Central / State Govt - With the financials given only for the past two years, though
Free Float 34 we may not be able to comment on its performance, the
Source: BSE India recent figures show that the company has been growing and
the PAT is increasing too. With the company having Rs.150 Cr
as Reserves & Surplus and the textile sector looking very
TRADING HISTORY positive there are ample chances for this company to grow.
Source: BSE India

Financials
(all Fig in Rs Cr)
FY07E FY06
SALES 104.93 86.54
TOTAL INCOME 108.46 90.26
EXPENDITURE 80.31 67.90
PBDIT 28.15 22.36
DEPRECIATION 7.39 4.71
PBIT 20.76 17.65
INTEREST 2.47 1.91
PBT 18.30 15.74
TAX 0.12
PROFIT AFTER TAX 18.18 15.74
NO OF SHARES 15754269 15754269
EQUITY CAPITAL 15.75 15.75
RESERVES AND SURPLUS 152.19 134.01
NETWORTH 167.94 149.76
CMP (Rs) 89.30 -
MKT CAP 140.69 -
P/E 7.74 -
EPS 11.54 9.99
NAV / Share (Rs) 106.60 95.06
NET PROFIT MARGIN 16.76% 17.44%
RONW 10.82% 10.51%

SUPER SPINNING MILLS LTD
www.superspinning.com

The Andhra Pradesh based Super Spinning Mills Ltd, a part of
Elgi Towers, P B 7113, the SARA ELGI Group, was established in the year 1962. The
737 D, Green Fields, other group companies are involved in various businesses
Coimbatore, Tamil Nadu like Electrical products, Software technology, Building
641045 products, Financial service etc.
The Business
FACTORIES Super Spinning Mills is into manufacture and export of
combed cotton Yarn for knitting and weaving. They have two
Plant I Hindupur, Andhra Pradesh production facilities in Andhra Pradesh and one in Dindugal
Plant II Kirikera, Andhra Pradesh Dist of Tamilnadu which is a 100% export oriented unit. The
Plant III Karur, Tamil Nadu annual sales turn over stood at Rs.363 Cr for the FY06. Yarn
segment contributes to 85% of the sales and the Garment &
Cotton segments contribute only 5% each. They export to
BSE CODE SUPERSPG various countries in EU, UK, Middle East and the Far East.
BSE SENSEX 14303.41
PRICE (BSE) 19.40 Promoters & Directors
Mkt Cap (Cr) 106.70 Mr L G Ramamurthi is the Chairman. Mr Sumanth
3M Avg Daily Vol 57180 Ramamurthi is the MD and Mr K R Seethapathy is the
52 Wk H/L 510 / 19 Executive Director.
FV 1
FY07E figures compared over FY06

Promoters 40 • Sales grew by 5.5% over FY06 and at a CAGR of 8%
MF, FI, FII, Banks 4 for the period FY03 – FY07E.
Central / State Govt - • PAT decreased by 15.64%
Free Float 56 • Net Profit Margin declined from 6.11% to 4.90%
Source: BSE India
The PAT has been decreasing and the net profit margin has
been slipping down every year which is currently (FY07E)
TRADING HISTORY below the FY03 mark of 4.93% which may be due to the
Promoter Holdings 21882224 reason that the group ventured into diversified sectors and
Public Holdings 33117776 ultimately lost focus.
Source: BSE India

Financials
(all Fig in Rs Cr)

SALES 383.03 363.17 367.52 281.02
TOTAL INCOME 385.64 366.32 371.09 283.63
EXPENDITURE 318.21 300.18 328.45 241.33
PBDIT 67.43 66.14 42.64 42.30
DEPRECIATION 22.00 20.11 17.36 15.24
PBIT 45.43 46.03 25.28 27.06
INTEREST 16.80 12.45 11.59 8.97
PBT 28.63 33.58 13.69 18.09
TAX 9.75 11.20 2.47 4.10
PROFIT AFTER TAX 18.88 22.38 11.22 13.99
NO OF SHARES 55000000 55000000 55000000 55000000
EQUITY CAPITAL 5.50 5.50 5.50 5.50
NETWORTH 133.99 115.11 97.75 5.50
CMP (Rs) 19.40 - - -
MKT CAP 106.70 - - -
P/E 5.65 - - -
EPS 3.43 4.07 2.04 2.54
NAV / Share (Rs) 24.36 20.93 17.77 1.00
RONW 14.09% 19.44% 11.48% 17.25%

SECTOR OVERVIEW
Industry Revenue in US $ [Bn] % Contribution to GDP
7.00
The IT-ITeS Industry 100 8
revenues increased Ten 80 6 5.40
47.80 4.80
Fold in the past decade 60
4
and expected to touch 40
US $ 100 Bn by FY10 4.80 2
20
- NASSCOM 0
'97-'98 '06-'07 '09-'10
0
FY06 FY07 FY08
I
Export revenues touched US $ 31 Bn in FY07 and expected to double

T
CURRENT SCENARIO by FY10
AND PROJECTIONS India emerging as the R&D hub for some of the largest IT companies
in the world
Most Indian companies have aligned their internal processes &

&
THE INDIA ADVANTAGE practices to international standards
Movement of the industry ttowards
owards a stable pricing model
Rich Talent Base
INVESTMENTS
Indian companies are growing at rapid pace by way of M&As I
In the first eight months of 2006, 57 private equity deals were
finalized worth more than US $ 1.73 Bn
T
The industry comes under MAT from FY08
GOVERNMENT
INITIATIVES
E-governance
governance has been increased from Rs.395 Cr to Rs.719 Cr
The Special Technology Park benefits are not extended beyond 2009
E
S
The industry is expected to grow at 25 – 28%
THE FUTURE It also drives the Real Estate sector
Expected to create 11 Mn jobs (Direct & Indi
Indirect)
rect) in the next 3 years
Sector to contribute US $ 115 Bn to the economy from allied sectors
Source: www.ibef.org, www.religareonline.com

COMPANIES
1. TVS ELECTRONICS LTD
2. MRO TEK LTD
3. SAKSOFT LTD
4. ACCEL FRONTLINE LTD
5. ACCEL TRANSMATIC LTD

May 24, 2007 SECTOR: INFORMATION TECHNOLOGY
TVS ELECTRONICS LTD
www.tvse.com

Established in 1986, TVS Electronics Ltd is a part of the 90
Jayalakshmi Estates year old TVS Group of Companies. Headquartered in
24, Haddows Rd Chennai, they have manufacturing plants in Chennai and
Chennai, Tamil Nadu Tumkur, Karnataka. They have distribution and service
600006 network in more than 400 towns.
The Business
FACTORIES TVS Electronics is into three types of businesses viz.,
Products & Solutions [P&S], Contract Manufacturing
Plant I Chennai, Tamil Nadu Services and Contract Customer Services. Under P&S, they
Plant II Tumkur, Karnataka manufacture computer peripherals like Keyboards, Dot
Matrix & Laser Printers, Power Conditioning Systems [UPS],
Point of Sale Systems and Set Top Boxes. Their services range
BSE CODE TVSELEC from Design, Engineering, Procurement of Raw Materials,
BSE SENSEX 14218.11 Manufacturing and Logistics. Also they have patented an
PRICE (BSE) 41.40 ‘Inkbank Technology’ for ribbon heads in printers which
Mkt Cap (Cr) 73.17 saves 70% of the printing costs.
52 Wk H/L 56.70 / 34.40 In FY06, 85% of their revenues were from the Computer
FV 10 Peripherals and UPS segments. Spares and Services
Source: BSE India contributed 10% and 5% respectively.

SHAREHOLDING PATTERN % Mr Venu Srinivasan is the Chairman and Mr Gopal Srinivasan
Promoters 59.72 is the Whole Time Director. Mr K Dhruva, Mr H Lakshmanan,
MF, FI, FII, Banks 0.38 Mr S R Viajayakar, Mr Srini Nageshwar, Dr Sridhar Mitta,
Central / State Govt - Mr.R.R Nair and Mr T K Balaji are the other Directors.
Free Float 39.90
The financials do not show any improvement in the

TRADING HISTORY performance of the company. The FY07E sales has been
Promoter Holdings 10553449 stagnant over FY06 and has dipped compared to FY05. The
Public Holdings 7119369 profits have been declining over the years and in FY07E it has
Jan-Mar 07 Avg Dly Vol 19529 incurred loss. Though the market for Personal Computers,
As % of Public Holdings 0.274 Direct To Home and other computing is increasing TVS
Source: BSE India Electronics Therefore, TVS Electronics is not a good
investment choice.

Financials
(all Fig in Rs Cr)
FY07E FY06 FY05

SALES 259.92 259.50 315.74
TOTAL INCOME 264.72 267.43 317.40
EXPENDITURE 250.17 251.12 299.68
PBDIT 14.55 16.31 17.72
DEPRECIATION 7.04 7.43 7.53
PBIT 7.51 8.88 10.19
INTEREST 7.72 6.00 4.70
PBT (0.21) 2.88 5.49
TAX 0.32 -0.27 1.01
PROFIT AFTER TAX (0.53) 3.15 4.48
NO OF SHARES 17672818 17672818 17672818
EQUITY CAPITAL 17.67 17.67 17.67
RESERVES AND SURPLUS 23.11 23.64 21.95
NETWORTH 40.78 41.31 39.62
CMP (Rs) 41.40
MKT CAP 73.17
P/E -
EPS (0.30) 1.78 2.53
NAV / Share (Rs) 23.07 23.38 22.42
NET PROFIT MARGIN -0.20% 1.18% 1.41%
RONW -1.31% 7.62% 11.31%

MRO TEK LTD
www.mro-tek.com

Founded in the year 1984 as Mro-Tek Private Limited, they
Bellary Road, Hebbal, got listed in 2000 and became a public limited company.
Bangalore, Karnataka Headquartered in Bangalore it was jointly promoted by
560024 Mr.S.Narayanan and Mr H Nandi. The company has technical
collaborations with Israel based RAD and Taiwan based
ZyXEL for manufacturing diverse range of products.
FACTORY
The Business
29-B, Electronics City With a focus on providing solution for data communication,
Hosur Road, MRO-TEK is into manufacture, repair, buy-sell, hire, import,
Bangalore export, install and consult all types of instruments such as
Electronic, Electrical, Medical Laboratory etc. They act as a
one stop shop for Networking products and solutions. Their
BSE CODE MROTEK manufacturing facility is at Electronics City, Bangalore. They
BSE SENSEX 14288.11 have an installed base of more than 250000 data
communication devices covering major public and private
PRICE (BSE) 46.15
sector companies. They have tied up with Lacom Systems,
Mkt Cap (Cr) 94.29
who are into development of Laser optical communication
systems. 75% of the sales revenue is through the Digital
52 Wk H/L 83.80 / 39
Modems and Multiplexer segment, whereas the Converters,
FV 5
Routers and others contribute to the rest.
Source: BSE India

Mr S Narayanan, the CMD and Mr H Nandi, the Managing
SHAREHOLDING PATTERN % Director of the company are the two first generation
Promoters 36 technocrats who promoted this company. Mr R Rajagopalan,
MF, FI, FII, Banks - Mr A Murali, Mr A Mohan Rao, Mr N Sivaram are the other
Central / State Govt - Directors.
Free Float 64
Source: BSE India
Remarks
The sales and profits have dipped in FY07 compared to FY06
which may be due to their launch of new products whose
TRADING HISTORY expected sales would have not been achieved. However the
Promoter Holdings 7309054 growing boom in communication sector and Net-Working
Public Holdings 13121074 activity in Banking, Finance, Insurance, Railways and other
Jan-Mar 07 Avg Dly Vol 97357 sectors will augment their profits in future. Moreover the
As % of Public Holdings 0.742 company is waiting for statutory approvals to buyback its
Source: BSE India shares and has allotted Rs.8.20 Cr for that purpose. This
shows that MRO TEK is a cash surplus company and their
FY06 Balance sheet reveals that they are a debt free
company.

Financials
(all Fig in Rs Cr)
FY07 FY06 FY05 FY04

SALES 110.75 139.79 115.05 97.62
TOTAL INCOME 115.66 144.04 119.76 101.20
EXPENDITURE 97.31 115.11 108.19 93.99
PBDIT 18.35 28.92 11.56 7.21
DEPRECIATION 2.97 3.64 4.06 1.30
PBIT 15.38 25.29 7.51 5.91
INTEREST 0.31 0.86 0.29 0.33
PBT 15.07 24.43 7.22 5.58
TAX 4.35 6.86 2.95 1.90
PROFIT AFTER TAX 10.72 17.57 4.27 3.68
NO OF SHARES 20430128 20430128 20430128 20430128
EQUITY CAPITAL 10.22 10.22 10.22 10.22
NETWORTH 94.88 84.16 71.79 70.45
CMP (Rs) 46.15 - - -
MKT CAP 94.29 - - -
P/E 8.79 - - -
EPS 5.25 8.60 2.09 1.80
NAV / Share (Rs) 46.44 41.19 35.14 34.48
RONW 11.30% 20.87% 5.94% 5.23%
Source: BSE India, www.religareonline.com

June 13, 2007 SECTOR: INFORMATION TECHNOLOGY
SAKSOFT LTD
www.saksoft.com

This Chennai based company was incorporated in 1999 as Sak
Sri Ram Nivas, 38, V K Iyer Road Infotech Ltd and later changed to Saksoft Ltd in 2002. It
Mandaveli opened its branch offices in Singapore, London and Germany
Chennai, Tamil Nadu to manage their business and operations of the respective
600028 regions. Later they acquired the business assets of Synertech
Inc of USA [2001] and Neem Tree Technologies of Chennai
[2002] to expand their business.
CENTRAL OFFICE
The Business
B – 35 – 36, Sector 80, Phase 2 They are into providing IT solutions for Banking, Financial and
Noida, Uttar Pradesh Insurance sectors. They aimed at developing IT solutions for
201305 the business problems with their Business Consulting Group
[BCG] who posses the respective domain knowledge. They
have two development centres in India, one each in Chennai
and Noida.
After the acquisition of Neem Tree Technologies Ltd who had
a product suite for Treasury and Money Market operations,
BSE CODE SAKSOFT
leading banks like State Bank of India, Central Bank of India,
BSE SENSEX 14338.45
Oman International Bank etc, came into their customer base.
PRICE (BSE) 218.10
Morgan Stanley, UK gave them the first large scale order for
Mkt Cap (Cr) 218.10
developing a credit card MIS application.
52 Wk H/L 245.55 / 64
FV 10 Mr Autar Krsihna is the Chairman and Mr Aditya Krishna is the
Source: BSE India
MD. Mr V Ramanathan is the executive Director.
Mr.R.Rajagopalan, Mr Jasmohan Mamak, Mr S C Agarwal,
Mr.Amitava Mukherjee are the other directors.
Promoters 68 Remarks
MF, FI, FII, Banks 4 FY07 figures compared to FY06
Central / State Govt - • Sales increased by 40%
Free Float 28 • PAT increased only by 8%
Source: BSE India
• Net profit margin has declined from 32.76% to
26.59%
The PAT has not grown in tune with the sales because of the
TRADING HISTORY increased expenditure, majority of which may be due to
Promoter Holdings 6800140 increased employee expenses as there is no manufacturing
Public Holdings 3199860 cost involved. However, as the Banking and Insurance sector
Jan-Mar 07 Avg Dly Vol 16533 has seen the rise of private players, Saksoft’s sales has a good
As % of Public Holdings 0.517 growth potential. Also they can leverage the big names in
Source: BSE India their customer list and expand their business.

Financials
(all Fig in Rs Cr)
FY07 FY06
SALES 36.88 26.29
PBDIT 12.45 11.33
PBIT 11.62 10.22
INTEREST 0.63 0.02
PBT 10.99 10.19
TAX 1.06 1.00
NO OF SHARES 10000000 10000000
NETWORTH 41.35 31.41
CMP (Rs) 240.00 -
MKT CAP 240.00 -
P/E 24.16 -
EPS 9.93 9.19
NAV / Share (Rs) 41.35 31.41
RONW 24.03% 29.25%

ACCEL FRONTLINE LTD
www.accelfrontline.com
REGISTERED & CORPORATE OFFICE The Company

Started as Accel Ltd in 1991, they went on to acquire the
III Floor, 75, Nelson Manickam Road Systems and Engineering Services [SES] Division of Fijitsu
Aminjikarai ICIM Ltd in 1999. In 2003 they acquired the Banking Software
Chennai, Tamil Nadu Solutions division of TVS E Technologies. In 2004 they
600029 acquired the SMS and wireless application software services
business of Trinity Infosys India Pvt Ltd. During the same
year, they entered into a strategic partnership with Frontline
Technologies Corporation Ltd of Singapore and changed the
BSE CODE AFL company’s name to Accel Frontline Ltd. Apart from this, Intel
BSE SENSEX 14338.45 and ICICI Venture Funds hold equity position in the company.
PRICE (BSE) 56.85 They have 2 wholly owned subsidiaries in Singapore and
Mkt Cap (Cr) 127.96 Dubai.
52 Wk H/L 120.50 / 52.50 The Business
FV 10 Accel Frontline Ltd is into business of providing IT services in
Source: BSE India range of domains from Infrastructure management to
software engineering services. They have also developed
their own products in Banking, Education, Healthcare,
Manufacturing, Distribution and Automotive verticals. Their
SHAREHOLDING PATTERN % major domestic customers are 3i Infotech, GE Capital,
Promoters 72 Wockhardt, World Bank-ICDS TN and to various other
MF, FI, FII, Banks - customers abroad.
Free Float 28 Promoters & Directors
Source: BSE India Mr N R Panicker is the CMD. Mr Harrison Wang Hong She,
Ms Lakshmi G Menon, Mr R Sinnakaruppan and Mr Suresh K
Sharma are the Independent Directors. Mr Steve Ting Tuan
Toon and Mr Lim Chin Hu are the Non Executive Directors.
TRADING HISTORY
Promoter Holdings 16141378 Remarks
Public Holdings 6367622 FY07 figures compared to FY06
Jan-Mar 07 Avg Dly Vol 255317 • Sales increased by 2.54%
As % of Public Holdings 4.01 • PAT grew by 68.30%
Source: BSE India • Net Profit Margin has increased from 3.90% to 6.37%
The company has been performing good and will continue to

do so, as the Indian IT sector is in a boom. Its highly reputed
clientele and its strategic associations will help the company
to improve its global business resulting in the increase of IT
Exports.

Financials
(all Fig in Rs Cr)
FY07 FY06
SALES 185.74 181.14
PBDIT 26.49 17.94
PBIT 23.69 15.29
INTEREST 5.65 4.93
PBT 18.04 10.36
TAX 6.09 3.26
NO OF SHARES 22509000 17330000*
CMP (Rs) 56.85 -
MKT CAP 127.86 -
P/E 13.35 -
EPS 10.71 4.10
NAV / Share (Rs) 34.59 35.04
RONW 15.35% 0.12
Source: BSE India, www.religareonline.com * The no of shares are derived from the equity capital.

ACCEL TRANSMATIC LTD
www.acceltransmatic.com

Accel Transmatic Ltd was originally set up as Transmatic
T C 17/ 27, Jagathy Systems Ltd [TSL] in 1986 by two promoters Mr M R
Trivandrum, Kerela Narayanan and Mr T Ravindran with equity participation of
695014 Kerela State Industrial Development Corporation and IDBI. In
1994 they went public and later in 2002, in a view to diversify
CORPORATE OFFICE into software and technology space they approached Accel
Ltd to take over TSL. Subsequently Accel Ltd took over TSL
Ground Floor, Chateau D Ampa and merged its group companies Accel Software &
37, Nelson Manickam Road Technologies, Accel IT Academy into TSL. It also acquired
Aminjikarai, Chennai, TN Ushus Technologies Ltd, an embedded software company in
Trivandrum and merged with TSL to form a new company
FACTORIES under the name of Accel Transmatic Ltd by the end of 2003.
Plant I Chennai, TN The Business

Plant II Trivandrum, Kerela Initially they started the company to manufacture electronic
products and communication systems. In 1991, they
diversified to manufacture High Speed Dot Matrix Printers in
BSE CODE ACCEL collaboration with Output Technology Corporation of USA.
BSE SENSEX 14338.45 Headquartered in Chennai they have their manufacturing
PRICE (BSE) 24.45 facilities in Chennai, Tamil Nadu and Trivandrum, Kerela. They
Mkt Cap (Cr) 26.99 also have a Software Development Center in Trivandrum and
3M Avg Daily Vol 19758 an overseas office in Japan. Currently their business turnover
52 Wk H/L 37 / 16.25 stands at Rs 32 Crores. Major clients of the company are SBI,
FV 10 Indian Bank, Corporation Bank, Vijaya Bank, ANZ Grindlays
Source: BSE India Bank, DoT, Reliance, Wipro, BHEL etc.

SHAREHOLDING PATTERN % Mr N R Panicker is the Chairman and Mr S T Prabhu is the
Promoters 59 Director. Mr T Ravindran and Mr Philip John are the Whole
MF, FI, FII, Banks - Time Directors. There are 4 other Independent Directors.
Free Float 41 Remarks
Source: BSE India FY07 figures compared to FY06
• Sales increased by 11%
• PAT grew by 79%
TRADING HISTORY • Net Profit Margin increased from 7.07% to 11.48%
Promoter Holdings 6470938 As the IT sector is growing the demand for electronic devices
Public Holdings 4566463 and communication systems supporting the IT functions will
Jan-Mar 07 Avg Dly Vol 19758 also grow. As the group has also diversified into software
As % of Public Holdings 0.433 development it is set to grow along with the IT sector boom.
Source: BSE India

Financials
(all Fig in Rs Cr)
FY07E FY06 FY05

SALES 32.35 29.12 27.01
TOTAL INCOME 32.41 29.36 27.53
EXPENDITURE 25.91 24.39 24.23
PBDIT 6.51 4.97 3.31
PBIT 5.19 3.61 2.03
INTEREST 1.19 1.39 1.35
PBT 4.00 2.23 0.67
TAX 0.28 0.15 0.02
PROFIT AFTER TAX 3.72 2.08 0.65
NO OF SHARES 11037401 11037401 11037401
NETWORTH 14.94 11.22 11.04
CMP (Rs) 24.45 - -
MKT CAP 26.99 - -
P/E 7.25 - -
EPS 3.37 1.88 0.59
NAV / Share (Rs) 13.53 10.16 10.00
NET PROFIT MARGIN 11.48% 7.07% 2.38%
RONW 24.92% 18.51% 5.93%

SECTOR OVERVIEW
US $ [Bn]
Projected growth of the

Indian Realty Sector
100
80
90.00
C
- Merill Lynch 60
40
20 12.00 O
0
2005 2015
N
Various infrastructure projects like roads, bridges etc., are in the
GOVERNMENT FUNDED construction stage
PROJECTS The major Golden Quadrilateral project is nearing completion S
North
North-South and East-West
West corridor is due for completion by 2009
The Corpus for Rural Infrastructure Development has been increased T

INCREASED from Rs.10
Rs.10000 Cr to rs.12000 Cr
GOVERNMENT Provision for NHDP to increase from Rs.9945 Cr to Rs.10667 Cr
FUNDING Outlay for Accelerated Irrigation Benefit Programme [AIBP] has been
increased from Rs.7121 Cr to Rs.11000 Cr
R
INFLOW OF FOREIGN &

Goldman Sachs together with Unitech are about to set up an SPV U
with a corpus of US $ 208.7 Mn for investment in real estate
DOMESTIC FUNDS DLF and the UAE based Nakheel are in for a 50:50 JV to develop two
integrate townships worth US $ 10 Bn
Zurich based Credit Suisse is about to invest US $ 1 Bn C
Various Mutual Fund companies aare re launching dedicated
Infrastructure Funds
T
With the Tier I cities getting saturated Tier II & III cities like Chennai
THE FUTURE Kochi, Coimbatore, Gurgaon & Pune are gaining importance
With booming retail business Reliance Retail, Future Group, Bharti- Bharti I
WalMart etc
etc,, are in for huge investments in acquiring land for their
retails malls
With the banks offering affordable loans, the demand for high value
residential apartments has also seen a spurting growth O
N

COMPANIES
1. MSK PROJECTS LTD
2. VIJAY SHANTHI BUILDERS LTD
3. MURUDESHWAR CERAMICS LTD
4. HYDERABAD INDUSTRIES LTD

May 25, 2007 SECTOR: CONSTRUCTION & REAL ESTATE
MSK PROJECTS LTD
www.mskprojects.com

MSK Projects Ltd, incorporated in the year 1994 started its
707-708, Sterling Centre construction business in 1976 as M/s M S Khurana, a
R C Dutt Road, partnership firm. In 1995, the group companies, M/s
Baroda, Gujarat Emsons Constructions Pvt Ltd and M/s Khurana
390005 (Engineering & Contractors) Pvt Ltd were amalgamated
with the parent company.
The Business
BSE CODE MSKPRO The firm is into the business of industrial construction for
BSE SENSEX 14338.45 various sectors like coal mines, fertilizer plants,
PRICE (BSE) 65.05 petrochemicals etc. They also do Mass Housing &
Mkt Cap (Cr) 104.19 Township projects and Multi Storied buildings. They have
3M Avg Daily Vol 44631 also ventured into the Infrastructure projects like bridges
52 Wk H/L 99.70 / 49.80 and roads on Build Operate Transfer [BOT] basis.
FV 10
Source: BSE India Their client list includes G.E. Plastic Limited, Crompton
Greaves, IPCL, NTPC, Nitco Tiles, Gujarat Chemical Port
Thermal Limited, Rajasthan Industrial Investment
SHAREHOLDING PATTERN % Corporation Limited (RIICO, HLL, Philips (India) Limited.
Promoters 31
MF, FI, FII, Banks 12 Promoters & Directors
Central / State Govt - Mr Ashok Gandhi is the Chairman and Mr Ashok Khurana is
Free Float 57 the Managing Director. Mrs Manju Khurana is the Whole
Source: BSE India Time Director. Mr C Mohanan and Mr Amit Khurana are
the Executive Directors. Mrs Dipti Shah, Mr Mayur Parikh
and Mr.Sanjay Mehta are the other Directors.
TRADING HISTORY
Promoter Holdings 4948495 Remarks
Public Holdings 11068849 FY07 figures compared to FY06
Jan-Mar 07 Avg Dly Vol 44631 • Sales increased by 103%
As % of Public Holdings 0.403 • PAT grew by 31%
Source: BSE India • Net Profit Margin reduced from 9.11% to 6.58%
The decline in the net profit margin in FY07 seems to be
due to increased Depreciation and Interest Charges.
However the booming construction industry with lot of
industrial, infrastructure and housing projects coming up
and the government supporting the sector by way of tax
concessions and low home loan rates, their business
should grow positively.

Financials
(all Fig in Rs Cr)
FY07 FY06 FY05
SALES 155.79 76.43 78.20

TOTAL INCOME 158.79 87.24 79.37
EXPENDITURE 126.61 73.47 70.40
PBDIT 32.18 13.77 8.97
PBIT 23.33 11.61 6.47
INTEREST 11.40 2.96 1.47
PBT 11.93 8.65 5.00
TAX 1.48 0.70 0.00
NO OF SHARES 16017344 14617778 12117778
NETWORTH 83.43 71.59 47.96
CMP (Rs) 65.05 - -
MKT CAP 104.19 - -
P/E 9.98 - -
EPS 6.52 5.44 4.12
NAV / Share (Rs) 52.09 48.97 39.58
RONW 12.52% 11.10% 10.42%

May 25, 2007 SECTOR: CONSTRUCTION AND REAL ESTATE
VIJAY SHANTHI BUILDERS LTD
www.vijayshanthibuilders.com

Incorporated in 1992, Vijay Shanthi Builders was promoted
II & IV Floor, Vijay Complex by Mr V C Jain who has been in the construction activity for
3, Blackers Road, Anna Salai more than 15 years. They have diversified into
Chennai, Tamil Nadu manufacture and marketing of mineral water. They are
600002 based in Chennai and their business operations are also
limited to the city only.
The Business
BSE CODE VIJSHAN They are into construction and promotion of housing
BSE SENSEX 14338.45 projects in Chennai. Recently they have also started taking
PRICE (BSE) 85.50 up turnkey contract projects and to start with they have
Mkt Cap (Cr) 103.15 signed one contract with BHEL for construction of 100 flats
3M Avg Daily Vol 90007 in two phases.
52 Wk H/L 186.45 / 21.85 They identified the growing market for mineral water in the
FV 10 water scarce Chennai city and are into the business of
Source: BSE India manufacturing and marketing the same.

SHAREHOLDING PATTERN % Mr Chandan Parmar is the Chairman and Mr Suresh Kumar
Promoters 41 is the MD. Mr Chandan kumar is the Joint Managing
MF, FI, FII, Banks 3 Director and Mr Naresh Kumar is the Whole Time Director.
Central / State Govt - Mr Nitin Kumar, Mr.Bajranglal Eriwal and Mr
Free Float 56 Sivasubramaniam are the other directors.
Source: BSE India
Remarks
FY07 figures compared to FY06
TRADING HISTORY • Sales increased by 48%
Promoter Holdings 5586600 • PAT has [more than doubled] grown by 178%
Public Holdings 6477800 • Net Profit margin increased from 4.36% to 8.22%
As % of Public Holdings 1.389 The financials clearly show that the company is performing
Source: BSE India very profitably. With the booming construction activity in
the city, the land and building prices are shooting up
rapidly. As most of the business is done on advance
payments, such companies tend to be cash surplus.
However the future prospects of such companies rest on
the projects they have on hand. Currently they have 15
projects coming up in the city. This company is set to post
higher profits in the years to come.

Financials
(all Fig in Rs Cr)

SALES 115.07 77.51 35.82 26.67
TOTAL INCOME 115.42 78.01 36.27 27.05
EXPENDITURE 100.40 72.74 33.12 24.90
PBDIT 15.02 5.27 3.15 2.15
DEPRECIATION 0.21 0.23 0.30 0.28
PBIT 14.81 5.05 2.85 1.87
INTEREST 2.66 0.21 0.09 0.15
PBT 12.15 4.84 2.76 1.72
TAX 2.67 1.44 0.23 0.12
PROFIT AFTER TAX 9.48 3.40 2.53 1.60
NO OF SHARES 12064400 12064400 11461400 11461400
EQUITY CAPITAL 12.06 12.06 11.46 11.46
NETWORTH 31.38 21.90 20.40 17.98
CMP (Rs) 85.50
MKT CAP 103.15
P/E 10.88
EPS 7.86 2.82 2.21 1.39
NAV / Share (Rs) 26.01 18.15 17.80 15.68
RONW 30.22% 15.54% 12.40% 8.88%

MURUDESHWAR CERAMICS LTD
www.murudeshwar.com

The Karnataka based Murudeshwar Ceramics Ltd, a part of
Murudeshwar Bhavan, Gokul Road, the Murudeshwar Group, was incorporated in 1983. The
Hubli, Karnataka other group companies operate in sectors like Construction,
580030 Hospital, Hotel, Automobile, Educational Institutions and
Power. The Company entered into a technical and financial
collaboration with Klingenberg Dekoramik, GmbH, W.
FACTORIES Germany for technical know-how, ceramic technical
documentation, assistance in machinery selection, production
Plant I Hubli, Karnataka and training the Indian technicians in Germany.
Plant II Dharwad, Karnataka
Plant III Karaikal, Pondicherry The Business
The core business of the company is into manufacture and
marketing of vitrified and ceramic tiles under the brand name
of ‘Naveen’. They also have a Granite Division which is a 100%
Export Oriented Unit. They have three manufacturing plants,
two in Karnataka and one in Karaikal. With a total sales
turnover of Rs 191 Cr, 95% is generated by the vitrified tile
BSE CODE MURUDCER segment. In FY07 they have launched the Super Glossy
BSE SENSEX 14338.45 Vitrified Tiles.
PRICE (BSE) 91.50
Mkt Cap (Cr) 160.14 They get the sales done through a mixed network of 74
3M Avg Daily Vol 28994 company showrooms, 32 Dealers and 2 Distributors. They
52 Wk H/L 124.90 / 64.15 have opened showrooms under a joint venture with the local
FV 10 dealers. They have 43 depots to cater to the above network.
Source: BSE India
Mr R N Shetty is the Chairman and Mr Satish R Shetty is the
SHAREHOLDING PATTERN % MD. Mr Sunil R Shetty and Mr Naveen R Shetty are the Joint
Promoters 48 MDs. Justice K Jagannatha Shetty and Mr K Sundar Naik are
MF, FI, FII, Banks 5 Additional Directors. Mr K Jeevan Shetty, Dr Sadanand V
Central / State Govt - Nadiq, Mr K P Surendranath, Dr B Sudesh Hegde and Dr K
Free Float 47 Sandip Malli are the Directors.
Source: BSE India
Remarks
TRADING HISTORY FY07 figures compared to FY06

Promoter Holdings 8340687 • Sales increased by 19%
Public Holdings 9161274 • PAT grew by 32%
Jan-Mar 07 Avg Dly Vol 28994 • Net profit Margin has increased from 12.63% to 14%
Source: BSE India

With the boom in the housing & construction sector and tiles being preferred and affordable in most of
the projects their demand is expected to go up continuously. Though the company has the threat of the
big players competing with them in the economy segment, the demand today is so high that every one
will get their share of pie.
Financials
(all Fig in Rs Cr)

SALES 228.28 191.12 167.42 140.17
TOTAL INCOME 229.23 191.77 167.75 140.57
EXPENDITURE 155.76 130.94 118.94 102.51
PBDIT 73.47 60.83 48.81 38.06
DEPRECIATION 20.92 18.21 16.58 14.45
PBIT 52.55 42.62 32.23 23.61
INTEREST 16.21 14.50 13.00 10.50
PBT 36.33 28.12 19.24 13.12
TAX 4.24 3.89 1.51 1.01
PROFIT AFTER TAX 32.09 24.23 17.73 12.11
NO OF SHARES 17501961 15025818 15025818 15025818
EQUITY CAPITAL 17.50 15.03 15.03 15.03
NETWORTH 230.99 196.42 175.72 162.40
CMP (Rs) 91.50 - - -
MKT CAP 160.14 - - -
P/E 4.99 - - -
EPS 18.34 16.12 11.80 8.06
NAV / Share (Rs) 131.98 130.72 116.95 108.08
RONW 13.89% 12.33% 10.09% 7.46%

HYDERABAD INDUSTRIES LTD
REGISTERED OFFICE & FACTORY The Company

Incorporated in the year 1946, Hyderabad Industries Ltd went
Sanatnagar into collaborations with various international companies in
Hyderabad, Andhra Pradesh London, USSR, Sweden, Italy, Japan and US to gain their
500018 technical know-how and manufacturing techniques. The
company also supplied machinery and technical expertise to
FACTORIES projects in countries like UAE and Nigeria.
Haryana - Faridabad The Business

- Dharuhera With an annual sales turnover of more than Rs. 400 Cr, they
Andhra Pradesh - Vijayawada are into manufacture of asbestos cement products and its
- Thimmapur accessories. In 1997 they launched the innovative Aerocon
Tamil Nadu - Chennai Panels which was marketed as an economic alternative to
Bihar - Jasidih brick, wood and hollow blocks. They are also into
Maharashtra - Thane manufacture of Thermal Insulation Products [Refractory], Pre-
Kerela - Thrisoor Fabricated Doors / Panels, Blocks and Steel Moulds. 80% of
Uttar Pradesh - Jaunpur their sales revenue is through Asbestos Cement Sheets,
Accessories and Fittings.
BSE CODE HYDIND The Heavy Engineering Division was transferred to Titagarh
BSE SENSEX 14338.45 Wagons Ltd and they amalgamated with Malabar Building
PRICE (BSE) 188.15 products Ltd of Kerala.
Mkt Cap (Cr) 140.41
52 Wk H/L 432 / 139.20 Mr C K Birla is the Chairman and Mr O P Jagetiya is the MD &
FV 10 CEO. Mr P Vaman Rao, Mr Yash Paul, Mr Krishnagopal
Source: BSE India Maheshwari, Mrs Sultana N Alladin and Mr Shreegopal Daga
are the other Directors.

Promoters 41 FY07 figures compared to FY06
MF, FI, FII, Banks 12 • Sales dipped by 2.35%
Central / State Govt - • PAT dipped by 63%
Free Float 47 • Net profit Margin declined from 8.3% to 3.15%
Source: BSE India In spite of the construction sector growing the company has
performed badly. The PAT given here is after adjusting the
loss of Rs.1.6 Cr due to transfer of Heavy Engineering division
TRADING HISTORY and Rs.3.2 Cr due to loss on a contract. The acute dip in
Promoter Holdings 3080598 profits is due to decrease in sales coupled with the increase in
Public Holdings 4381965 expenditure. However, the company currently being in a
Jan-Mar 07 Avg Dly Vol 18575 restructuring phase should recover in FY08.
Source: BSE India

Financials
(all Fig in Rs Cr)
FY07 FY06 FY05 FY04
SALES 439.70 450.29 407.47 323.82

TOTAL INCOME 443.75 453.89 410.32 330.31
EXPENDITURE 407.47 382.20 374.14 313.16
PBDIT 36.28 71.69 36.18 17.15
DEPRECIATION 9.55 8.11 8.50 8.06
PBIT 26.73 63.58 27.68 9.09
INTEREST 4.40 3.50 10.54 13.56
PBT 22.33 60.08 17.14 -4.47
TAX 8.36 22.40 7.40 -3.64
PROFIT AFTER TAX 13.97 37.68 9.74 -0.83
NO OF SHARES 7462563 7147631 7147631 7147631
EQUITY CAPITAL 7.46 7.15 7.15 7.15
NETWORTH 136.21 126.29 78.53 71.97
CMP (Rs) 188.15 - - -
MKT CAP 140.41 - - -
P/E 10.05 - - -
EPS 18.72 52.72 13.63 -1.16
NAV / Share (Rs) 182.53 176.68 109.87 100.69
NET PROFIT MARGIN 3.15% 8.30% 2.37% -0.25%
RONW 10.26% 29.84% 12.40% -1.15%

SECTOR OVERVIEW
CURRENT SCENARIO Capacity utilization of the Indian cement plants have crossed the
100% mark for the first time during Jan ‘07.
The industry is in a consolidation phase and is witnessing various
domestic and overseas M&A deals
INVESTMENTS BY In FY06 4 global cement majors viz., Lafarge, Holcim, Italcementi and
GLOBAL MAJORS Heidelberg have entered India through various acquisitions, JVs and
green field projects C
IMPACT OF THE
GOVERNMENT
The excise duty has been raised from Rs.400 per tonne to Rs.600 per
tonne on cement sold for more than Rs.190 per 50 Kg, though the
duty on cheaper cement bags was cut to Rs.350 per tonne
E
In spite of the increase in excise duty, the prices were not reduced
but passed on to the consumer, not affecting the profits of the
companies. M
THE FUTURE The growing boom in the housing sector, government’s Infrastructure
projects and the construction industry as a whole, will keep the
demand for cement high and the companies are poised for a good
E
growth
N
T

COMPANIES
1. KAKATIYA CEMENT SUGAR AND INDUSTRIES LTD
2. NCL INDUSTRIES LTD

May 25, 2007 SECTOR: CEMENT
KAKATIYA CEMENT SUGAR AND INDUSTRIES LTD
www.kakatiyacements.com

Initially it was started as Kakatiya Cements Ltd in the year
1 – 10 – 140/1, Gurukrupa 1979, with equity support from APIDC. Later, they acquired
Ashok Nagar more than 50% of equity stake in Sree Kailas Sugars &
Hyderabad, Andhra Pradesh Chemicals Ltd and diversified into Sugar, Sugar Based
500020 Industrial and Power projects.
The Business
FACTORIES They are into manufacture of Cement, Sugar and generation
of Power. They have a cement manufacturing plant in
Plant I Nalgonda, Andhra Nalconda District of Andhra Pradesh [AP] with an installed
Plant II Khammam, Andhra capacity of 297000 TPA. The Sugar plant is located in
Khammam District [AP] with an installed capacity of 3200
TCD. Of the total sales revenue generated, Cement & Sugar
contribute 40% each and Power contributes 17%.

Mr P Venkateswarlu, who promoted this company, is the
BSE CODE KAKCEM CMD and Mr P Veeraiah is the Joint MD. Mr J S R Prasad is the
BSE SENSEX 14388.45 Executive Director. Mr R S Vidya Sagar is the Nominee
PRICE (BSE) 78.15 Director. Mr J Seshagiri Rao, Mr P V Rao, Mr V B R Suryam, Mr
Mkt Cap (Cr) 60.75 M Narasimha Rao, Ms J Lakshmi Nalini, Mr T R C Bose and Mr
3M Avg Daily Vol 15936 C Madhusudhana Rao are the other Directors.
52 Wk H/L 154 / 67.20
FV 10 Remarks
Source: BSE India
FY07 figures compared to FY06.
SHAREHOLDING PATTERN % • PAT grew by 66%
Promoters 45 • Net Profit Margin has increased from 8.8% to 12.8%
MF, FI, FII, Banks - The booming Housing Sector and Infrastructure Development
Central / State Govt - activities have led to the increase in production capacities of
Free Float 55 various cement plants thus increasing their profits. Also
Source: BSE India recently, the industry has been consolidating through lot of
M&As by global companies which is a good sign of growth.
Sugar being one of the core industries is also set for a growth
TRADING HISTORY and [as per company reports] the price realizations have
Promoter Holdings 3522216 improved compared to previous years. Power sector has
Public Holdings 4251642 always been growing with the demand increasing everyday.
Jan-Mar 07 Avg Dly Vol 15936 Considering the above factors this company is expected to
As % of Public Holdings 0.375 earn good profits in the long run.
Source: BSE India

Financials
(all Fig in Rs Cr)
FY07 FY06 FY05 FY04

SALES 137.67 120.82 139.41 141.15
TOTAL INCOME 138.47 121.53 140.31 141.81
EXPENDITURE 105.69 96.16 111.77 111.53
PBDIT 32.78 25.37 28.54 30.27
DEPRECIATION 7.94 7.81 7.81 7.93
PBIT 24.84 17.57 20.73 22.34
INTEREST 4.55 5.89 9.38 15.19
PBT 20.28 11.68 11.35 7.15
TAX 2.48 0.98 0.90 0.54
PROFIT AFTER TAX 17.80 10.70 10.45 6.61
NO OF SHARES 7773858 7773858 7773858 7773858
EQUITY CAPITAL 7.77 7.77 7.77 7.77
NETWORTH 92.51 74.70 79.20 70.87
CMP (Rs) 78.15 - - -
MKT CAP 60.75 - - -
P/E 3.41 - - -
EPS 22.90 13.76 13.44 8.51
NAV / Share (Rs) 119.00 96.10 101.88 91.17
RONW 19.24% 14.32% 13.19% 9.33%

May 25, 2007 SECTOR: CEMENT
NCL INDUSTRIES LTD
www.nclind.com

Headquartered in Hyderabad, NCL Industries Ltd was initially
th
7 Floor, Raghava Ratna Towers started as Nagarjuna Cement Ltd in the year 1979. It was
Chirag Ali Lane promoted by Mr Ramachandra Raju along with the support
Hyderabad, Andhra Pradesh of APIDC [Andhra Pradesh Industrial Development
500001 Corporation]. Later, they diversified into Cement Boards,
Prefabricated Panels [PreFab] and Energy Division. They
have a technical collaboration with Bison Werke Bahre &
FACTORIES Graten GmbH & Co. K.G. of West Germany for manufacture
of Cement Boards.
Plant I Nalgonda, Andhra
Plant II Hyderabad, Andhra The Business
Plant III Faridabad, Haryana They are majorly into manufacture and sales of Cement,
Cement Boards and PreFab Panels. They have a cement
manufacturing plant in Nalconda District of Andhra Pradesh
[AP] with an installed capacity of 297000 TPA. The cement
boards are marketed in the brand name of ‘Bison Panels’. Of
the total sales revenue generated cement alone contributes
BSE CODE NCLIND 50% and PreFab and Boards division contribute 20% each.
BSE SENSEX 14338.45
Mkt Cap (Cr) 117.33 Mr K Jayabharath Reddy is the Chairman and Mr K ravi is the
3M Avg Daily Vol 152936 Managing Director. Mr M Bhaskara Rao is the Nominee
52 Wk H/L 65.35 / 20.20 Director. Mr M Kanna Reddy, Mr GDLSN Raju, Mr S Gokul,
FV 10 Mr.R Anand, Mr Vinodraj V Goradia, and Mr K Madhu are the
Source: BSE India other Directors.
Remarks
SHAREHOLDING PATTERN % FY07 figures compared to FY06
Promoters 35 • Sales increased by 26%
MF, FI, FII, Banks - • PAT increased from Rs.3.4 Cr to Rs. 28.4 Cr
Central / State Govt - • Net profit Margin increased from 2.68% to 17.44%
Free Float 65 The financials show that the company has started
Source: BSE India performing better than its previous years due to the
booming cement sector driven by the growth of the
construction industry. Since its entire product segments are
TRADING HISTORY construction industry oriented their profits will definitely
Promoter Holdings 9952422 grow in the future. Moreover, with the spurt in M&As in the
Public Holdings 19270263 industry and being a performing mini cement company it has
Jan-Mar 07 Avg Dly Vol 152936 a bright future in terms of sales and profits.
Source: BSE India

Financials
(all Fig in Rs Cr)
FY07 FY06 FY05 FY04
SALES 160.23 127.08 92.24 71.34

TOTAL INCOME 162.73 127.51 92.46 71.70
EXPENDITURE 116.35 110.48 79.19 59.00
PBDIT 46.38 17.03 13.27 12.70
DEPRECIATION 6.60 4.66 4.52 4.46
PBIT 39.78 12.37 8.75 8.23
INTEREST 9.14 5.23 3.57 4.92
PBT 30.64 7.15 5.18 3.31
TAX 2.26 3.73 2.66 2.03
PROFIT AFTER TAX 28.38 3.42 2.52 1.29
NO OF SHARES 29222685 16234825 16234825 16234825
EQUITY CAPITAL 29.22 16.23 16.23 16.23
NETWORTH 70.51 29.14 25.72 26.42
CMP (Rs) 40.15 - - -
MKT CAP 117.33 - - -
P/E 4.13 - - -
EPS 9.71 2.11 1.55 0.79
NAV / Share (Rs) 24.13 17.95 15.84 16.27
RONW 40.25% 11.73% 9.81% 4.86%

M
SECTOR OVERVIEW
E
D
Industry Revenues grew by 20% to US $ 9.71 Bn in FY06
CURRENT SCENARIO Advertising spending grew by 23% to US $ 3.62 Bn
AND PROJECTIONS Indian Film Industry is at US $ 1.8 Bn growing at a CAGR of 16% I
Television industry is at US $ 5 Bn growing at a CAGR of 22%
Music industry is at US $ 0.19 Mn growing at a CAGR of 4%
Radio Industry is at US $ 0.11 Bn growing at 28% annually
A
India is the 3rd largest Television market in the world

INDIA's GROWTH Reaches 119 Mn television households – the size of entire US market &
POTENTIAL but it covers only 60% of the country’s households
Of the above only 50 Mn receive cable TV services
E
FDI worth US $ 88 Mn has flowed into the sector
INVESTMENTS 13 FDI proposals were sanctioned in 2006
FDI worth US $ 0.11 Bn expected in Radio sector in the next one year N
T
20% FDI limit in FM Radio sector
GOVERNMENT 26% Foreign Equity Holding in News related print media E
INITIATIVES Sanctioned the Community Radio Policy allowing Non Profit
Organizations with 3 year track record to set up and run stations
R
T
18 companies to raise capital worth US $ 679 Mn via IPOs in 2007
THE FUTURE By the end of 2007 India is expected to have 600 Radio stations [250
A.I.R and 350 Private] across 100 Cities A
With the rise in the investment of global players in this sector, the
competition will increase and lead to new avenues of growth
I
N
M
E
N
S GANESH KUMAR 23014 T

COMPANY
1. RADAAN MEDIAWORKS [I] LTD

June 13, 2007 SECTOR: MEDIA AND ENTERTAINMENT
RADAAN MEDIAWORKS [I] LTD
www.radaan.tv

Radaan Picture Pvt Ltd, started by Ms R Radikaa in the
10, Paul Appaswamy Street year 1999, was later changed to Radaan Mediaworks [I]
T Nagar, Chennai, Tamil Nadu Ltd, a public limited company in 2002.
600017
The Business
The company is into the business of production of Mega
Tele-Serials, Tele-Films, Films, Computer Graphics,
BSE CODE RADAANMED Animation, Event Shows etc. They are a television content
BSE SENSEX 14388.45 provider in South India with a strong presence in
PRICE (BSE) 9.31 television channels across number of languages like Tamil,
Mkt Cap (Cr) 50.42 Telugu, Kannada, Malayalam, Gujarathi and Sinhalese.
3M Avg Daily Vol 68611 They also plan to enter into the Hindi, Marathi and other
52 Wk H/L 11.14 / 4.00 north Indian languages segment.
FV 2
Ms R Radikaa is the Executive Chairman and Whole Time
Director. Mr R Santhanam is the Additional Director.
SHAREHOLDING PATTERN % Mr.R.Sarath Kumar, Mr M K Sinha, Mr Raju Radha,
Promoters 60 Mr.P.K.Raghu Kumar, Mr S Priyadarshan, Mr Harsh
MF, FI, FII, Banks - Dalmia, and Mr P M Venkatasubramaniam are the other
Free Float 40

TRADING HISTORY • Sales increased by 50%
Promoter Holdings 32909922 • PAT declined by 13%
Public Holdings 21251618 • Net Profit Margin decreased from 6.19% to 3.57%
As % of Public Holdings 0.323 The decline in the profits seems to due to the increase in
Source: BSE India expenditure compared to the increase in revenues.
However, India is the world’s third largest television
market [Source: IBEF Report]. As per PwC reports, the
industry worth USD 3.4 billion is expected to grow at a
CAGR of 22% to hit USD 11.5 billion in 2011 and the
advertising spending has been on the rise [21% for 2005]
in the recent years. In 2006 13 FDI proposals were
approved by the government. With such a positive
industry outlook and its good brand image in the southern
region, the company is set for a high growth.

Financials
(all Fig in Rs Cr)
FY07 FY06 FY05
SALES 45.37 30.15 31.22

TOTAL INCOME 45.57 30.22 31.24
EXPENDITURE 40.83 24.82 26.10
PBDIT 4.74 5.40 5.14
PBIT 3.43 4.09 3.97
INTEREST 0.86 1.70 1.46
PBT 2.57 2.39 2.51
TAX 0.94 0.52 0.85
NO OF SHARES 54161540 54161540 54161540
NETWORTH 26.73 25.10 23.24
CMP (Rs) 7.78 - -
MKT CAP 42.14 - -
P/E 25.88 - -
EPS 0.30 0.35 0.31
NAV / Share (Rs) 4.94 4.63 4.29
RONW 6.09% 7.45% 7.14%

SECTOR OVERVIEW
US $ [Bn]
1300
The value of the Total 1400
Assets managed by all 1200
the funds is expected to 1000
be at US $ 1300 Bn 800
600
- BCG 400 170
200
0
2006 2015
Entry level individual investors account for 50% of the Assets Under
CURRENT SCENARIO Management [AUM]
The Sensex has almost quadrupled in the last decade
The contribution of MFs to the GDP has increased to almost 10% N
27 direct players are there in the Insurance sector
The insurance sector is expected to touch US $ 60 Bn by 2010
There are 436 deposit taking NBFCs
Of the above 16 have asset sizes of over US $115 Mn which account
B
for 49% of the aggregate deposits of the sector
NYSE, General Atlantic and Goldman Sachs have acquired a stake of

F
INVESTMENTS 5% each in NSE
FII activity is more than US $ 50 Bn and is on the rise
MNCs have entered into a JV with the domestic Insurance companies C
Global
obal majors like American International Group, JP Morgan AMC and
Japan’s Mitsubishi UFJ securities are planning to invest
With the increasing awareness of Capital Markets and participation of

THE FUTURE retail level individual investors the sector is poised for a growth
g
If the Capital Account Convertibility comes into place the Indian
Financial Markets will be on par with global markets

COMPANIES
1. APOLLO SINDHOORI CAPITAL INVESTMENTS LTD
2. INDIA CEMENTS CAPITAL AND FINANCE LTD
3. JRG SECURITIES LTD
4. MANAPPURAM GENERAL FINANCE AND LEASING LTD

May 25, 2007 SECTOR: NBFC
APOLLO SINDHOORI CAPITAL INVESTMENTS LTD
www.apollosindhoori.com

Apollo Sindhoori Capital Investments Ltd is a maiden venture
M Floor, Ali Towers of the Apollo Hospitals Group into the Financial Services
55, Greams Road Sector. Started in the year 1996, it became a Depository
Chennai, Tamil Nadu Participant of NSDL in 1999 and a member of the BSE in 2000.
600006 Apollo Sindhoori Commodities Trading Limited, a group
company, entered into the commodities trading in 2004 by
becoming a member in NMCE and NCDEX.
The Business
They are into secondary stock market operations and act as
providers of all kinds of capital and commodity market
services. They have a client base of more than 85000 clients
across the country. They have enabled all their branches in
their network to trade on commodities.
The company has plans to enter into trading of Retail Debt
Markets and distribution of financial products like Insurance
and Mutual Fund Schemes. Currently their annual sales
BSE CODE APOLLOSIND turnover is Rs 63 Crores.
BSE SENSEX 14388.45
Mkt Cap (Cr) 71.16 Ms Suneeta Reddy is the Chairman and Mr P B Subramanian is
3M Avg Daily Vol 7450 the Executive Director. Mr K Padmanabhan, Mr V J Chacko,
52 Wk H/L 398 / 99.90 Mr S Narayanan and Mr S K Venkatraman are the other
FV 10 Directors.
Source: BSE India
Remarks
SHAREHOLDING PATTERN % • Sales increased by 12.89%
Promoters 66 • Sales had grown at a CAGR of 39.46%
MF, FI, FII, Banks - • PAT grew by 6.92%
Central / State Govt - • Net Profit Margin has declined from 14.76% to
Free Float 34 13.80%
Source: BSE India
Though the sales and profits have increased the net profit
margin has declined owing to the increase in expenditure.
However the profitability shall increase if the company adopts
TRADING HISTORY cost saving measures or if the expenditure incurred starts
Promoter Holdings 3674278 giving returns in terms of sales turnover. As the Capital
Public Holdings 1865722 Markets are witnessing the increasing number retail investors
Jan-Mar 07 Avg Dly Vol 7450 supported by a strong economic growth, the company is
As % of Public Holdings 0.399 expected perform better in the future.
Source: BSE India

Financials
(all Fig in Rs Cr)

SALES 63.04 55.84 36.86 23.24
TOTAL INCOME 64.75 56.63 37.12 23.41
EXPENDITURE 46.57 38.11 25.89 15.71
PBDIT 18.17 18.52 11.23 7.70
DEPRECIATION 3.35 2.91 2.00 1.32
PBIT 14.83 15.61 9.23 6.38
INTEREST 1.77 2.63 1.16 0.88
PBT 13.06 12.98 8.07 5.50
TAX 4.12 4.62 1.88 0.98
PROFIT AFTER TAX 8.94 8.36 6.19 4.52
NO OF SHARES 5540000 2770000 2770000 2770000
EQUITY CAPITAL 5.54 2.77 2.77 2.77
NETWORTH 206.17 194.46 16.16 11.24
CMP (Rs) 128.45 - - -
MKT CAP 71.16 - - -
P/E 7.96 - - -
EPS 16.13 30.18 22.35 16.32
NAV / Share (Rs) 372.14 702.02 58.34 40.58
RONW 4.33% 4.30% 38.30% 40.21%

INDIA CEMENTS CAPITAL AND FINANCE LTD
www.iccaps.com

In 1985 Aruna Sugars and Enterprise Ltd started the
Dhun Building company as Aruna Finance Ltd. Later in 1997, ICL Financial
827, Anna Salai Services Ltd and ICL Securities Ltd, the wholly owned
Chennai, Tamil Nadu subsidiaries of India Cements Ltd acquired the company and
600002 changed it to India Cements Capital and Finance Ltd.
The Business
The company is engaged in the business of Leasing, Hire
Purchase, Forex Advisory Services, Foreign Exchange and
Financial Services. They also obtained NSE membership and
were involved in capital market operations and allied
activities.
In 1996, CRISIL upgraded the rating of their deposit schemes

as from FA+ to FAA- indicating higher safety of depositor’s
funds. The major part of the income is through their Forex
Advisory Services which accounts to 60% of the total sales
BSE CODE INDCEMCAP revenue and the Finance & Lease Rentals account for 30%.
BSE SENSEX 14388.45
Mkt Cap (Cr) 16.82 Mr N Srinivasan is the Chairman and Mr T S raghupathy is
3M Avg Daily Vol 3465 the Additional Director. Mr N Ramachandran, Mr T Dulip
52 Wk H/L 10.20 / 4.55 Singh, Mr N Srinivasan and Dr B S Adityan are the other
FV 10 Directors.
Source: BSE India
Remarks
SHAREHOLDING PATTERN % In FY06 the company hived of all its bank liabilities and its
Promoters 86 related fund based assets to reduce the debt levels and
MF, FI, FII, Banks - interest payments. As a result the company suffered losses
Central / State Govt - in that year. Subsequently, in FY07, the company seemed to
Free Float 14 have performed better and achieved a profit of Rs. 1.22 Cr
Source: BSE India
with a Net Profit Margin of 15.68%. With their current focus
on fee based division like Forex Advisory Services and being
debt free it is expected to perform better in the future.
TRADING HISTORY
Promoter Holdings 18606640 Others
Public Holdings 3099560 The promoter shareholding is more than the stipulated 75%.
Jan-Mar 07 Avg Dly Vol 3465 SEBI has fixed a deadline till May 2008 for all the companies
As % of Public Holdings 0.112 to reduce the promoter holdings to 75% or less.
Source: BSE India

Financials
(all Fig in Rs Cr)
FY07 FY06 FY05 FY04

SALES 5.37 7.44 11.64 25.67
TOTAL INCOME 7.77 7.44 11.64 25.67
EXPENDITURE 5.71 6.07 9.00 7.15
PBDIT 2.06 1.38 2.64 18.51
DEPRECIATION 0.51 0.99 1.97 2.81
PBIT 1.55 0.39 0.67 15.71
INTEREST 0.34 4.95 11.88 15.65
PBT 1.21 -4.56 -11.21 0.06
TAX -0.01 0.12 0.00 0.05
PROFIT AFTER TAX 1.22 -4.69 -11.21 0.00
NO OF SHARES 21706200 21706200 21706200 21706200
EQUITY CAPITAL 21.71 21.71 21.71 21.71
RESERVES AND SURPLUS 1.47 -1.07 3.61 14.83
NETWORTH 23.18 20.64 25.32 36.53
CMP (Rs) 7.75 - - -
MKT CAP 16.82 - - -
P/E 13.81 - - -
EPS 0.56 -2.16 -5.17 0.00
NAV / Share (Rs) 10.68 9.51 11.66 16.83
NET PROFIT MARGIN 15.68% -62.94% -96.29% 0.02%
RONW 5.26% -22.70% -44.28% 0.01%

JRG SECURITIES LTD
www.jrg.co.in

This Kochi based company was started in the year 1992 as JRG
Velliapallil Buildings Associates. In 1994 it was converted to JRG Associates Pvt Ltd,
T B Road, Pala, Kerela a private limited company and in 2003, it got changed to JRG
686575 Securities Ltd, a public limited company. The wholly owned
subsidiaries of the company are JRG Wealth Management Ltd,
JRG insurance Broking Pvt Ltd and JRG Metals and
Commodities DMCC, Dubai.
The Business
Beginning its business in the secondary stock market
operations in 1992, it became the member of NSE in 1999 and
a Depository Participant of NSDL in 2000. Since then, it
developed its branches across Kerala, Bangalore and Chennai.
In 2005, after becoming a member of BSE it started its
operations in AP, Maharshtra, UP, Delhi and Punjab. Currently
they have more than 325 branches across the country and still
growing. The company has plans to set up JRG Middle East
BSE CODE JRG Securities LLC, a limited liability company to perform broking
BSE SENSEX 14388.45 operations in Indian and International Stock exchanges for the
PRICE (BSE) 31.95 Middle East market.
Mkt Cap (Cr) 40.87
52 Wk H/L 45.15 / 23.05 Mr T M Venkatraman is the Chairman and Mr Regi Jacob is
FV 10 the MD.Mr Giby Mathew is the Executive Director.
Source: BSE India
Mr.S.K.K.Nair, Mr Mathew Jacob and Mr Jiji Antony are the
other Directors.

Promoters Indian 61
Foreign 5 FY07 figures compared to FY06
Free Float 28
• PAT grew by 83%
Source: BSE India
• Net Profit Margin has increased from 12.75% to
14.53%
TRADING HISTORY
As there has been a growth in the number of retail investors
Promoter Holdings 9165000 coming into the capital markets and the NBFC industry being
Public Holdings 3627322 in an uptrend, the company is expected to grow profitably.
Source: BSE India

Financials
(all Fig in Rs Cr)
FY07 FY06 FY05
SALES 25.99 16.61 10.05

TOTAL INCOME 27.23 16.95 10.17
EXPENDITURE 20.43 12.74 7.41
PBDIT 6.81 4.22 2.76
PBIT 6.03 3.61 2.53
INTEREST 0.04 0.26 0.26
PBT 5.99 3.35 2.27
TAX 2.04 1.19 0.79
NO OF SHARES 12792322 9165000 -
NETWORTH 26.10 9.88 3.63
CMP (Rs) 31.95 - -
MKT CAP 40.87 - -
P/E 10.33 - -
EPS 3.09 2.36 6.71
NAV / Share (Rs) 20.40 10.78 -
RONW 15.16% 21.87% 40.77%

MANAPPURAM GENERAL FINANCE AND LEASING LTD
www.manappuram.com

Manappuram Group was founded by Mr V C Padmanabhan in
V / 104, Manappuram House 1949. Manappuram General Finance and Leasing Ltd
Valapad P O [MAGFIL], a part of the Manappuram Group, was established
Thrisoor, Kerela in the year 1992. Headquartered in Valapad, Kerela, it was
680567 promoted by the founder’s son, Mr V P Nandakumar. MAGFIL
went public in the year 1995. The other business ventures of
the group are Benefit Fund, Insurance, Chit Fund and
Software.
The Business
MAGFIL, an NBFC, is engaged in the business of offering
varied services like Hypothecation Loans, Gold Loans and
other fee based activities. To facilitate their fund based
activities they accept Deposits, Bonds and Non Convertible
Debentures. They were rated ‘MA’ by ICRA for their timely
repayment of principal and interest under its Public Deposit
Scheme.
BSE CODE MANAPPG They have more than 400 branches across the country and
BSE SENSEX 14338.45 they do a business turnover of Rs 43 Cr, of which 95% was by
PRICE (BSE) 82.30 way of interest charges. The rest include income from Hire
Mkt Cap (Cr) 90.53 Charges, Finance Charges, Foreign Currency and other
3M Avg Daily Vol 10157 investments.
52 Wk H/L 106 / 24
FV 10 Promoters & Directors
Source: BSE India
Mr V P Nandakumar is the Chairman & Managing Director and
Mr I Unnikrishnan is the Managing Director. Apart from them
there are 10 other Non Executive Directors.
Promoters 40 Remarks
MF, FI, FII, Banks - FY07 figures compared to FY06
Free Float 60
• Sales has grown at a CAGR of 54% during 2004 - ’07
Source: BSE India
• PAT grew by 168%
• Net Profit Margin has increased from 20.03% to
24.31%
TRADING HISTORY
The company has been performing extraordinarily well over
the past 4 years. The financial services sector is expected
grow with the increasing economic activities, resulting in
increased revenues for the company.
Source: BSE India

Financials
(all Fig in Rs Cr)
FY07 FY06 FY05 FY04

SALES 43.34 19.53 16.29 11.83
TOTAL INCOME 43.65 19.74 16.54 12.19
EXPENDITURE 17.40 6.10 5.10 3.52
PBDIT 26.25 13.64 11.44 8.67
DEPRECIATION 1.07 0.48 0.33 0.25
PBIT 25.18 13.16 11.11 8.42
INTEREST 8.83 7.10 6.80 5.61
PBT 16.35 6.06 4.31 2.82
TAX 5.74 2.11 1.61 1.05
PROFIT AFTER TAX 10.61 3.95 2.69 1.77
NO OF SHARES 11000000 5500000 4500000 4500000
EQUITY CAPITAL 11.00 5.50 4.50 4.50
NETWORTH 24.13 16.02 10.68 8.69
CMP (Rs) 82.30 - - -
MKT CAP 90.53 - - -
P/E 8.53 - - -
EPS 9.65 7.19 5.98 3.93
NAV / Share (Rs) 21.93 29.13 23.72 19.30
RONW 43.99% 24.68% 25.22% 20.35%

SECTOR OVERVIEW
F
CURRENT SCENARIO Indians spending on meals outside home has more than doubled to
AND PROJECTIONS US $ 5 Bn per year in the past decade
The proportionate expenditure on Staple food declined from 45% to
O
44% in Rural India and the same stood at 32% in Urban India due to
the rise in consumption of Processes Food
Processed Food accounts for [US $ 29.4 Bn] 32% of the total Food O
Market [US $ 91.66 Bn] In India
Branded Indian food products gaining shelf space in foreign retail
chains
D
INVESTMENTS FDI in the sector is poised to hit US $ 3 Bn mark
FDI approvals of worth US $ 41 Mn were sanctioned in FY06 alone as
against US $ 22 Mn in FY05
US based New Vernon Private Equity Ltd is about to invest Rs 45 Cr in
Kochi based Eastern Condiments
America’s Hershey is acquiring 51% stake in Godrej Beverages and
Foods for US $ 54 Mn
P
GOVERNMENT Income Tax concessions for agro processing industries
INITIATIVES Waived the 16% Excise Duty on dairy machinery and reduced from 16
to 8% on Meat, Fish and Poultry products
R
Except alcoholic products and few other small scale industries most
of the processed food items are entitled to 100% FDI approval
Plans to set up Mega Food parks to promote FDI in Food Processing
sector with a subsidy amounting to US $ 22 Bn
O
D
THE FUTURE Industry is estimated to grow at 9 to 12%
On similar lines with the global food chains like Mc Donald’s, Pizza
Hut, KFC many more are to come
With the increasing disposable income and changing consumption
U
pattern of the people the Processes Food sector will thrive well
C
T
S
COMPANIES
1. SKM EGG PRODUCTS LTD
2. AVT NATURAL PRODUCTS LTD
3. HATSUN AGRO FOOD PRODUCTS LTD
4. LOTTE INDIA CORPORATION LTD

May 25, 2007 SECTOR: FOOD PRODCUTS
SKM EGG PRODUCTS LTD
www.skmegg.com

SKM Egg Products, a part of the SKM Group was started by
156, Gandhiji Road Mr S K M Maeilanandan in 1995 and began the commercial
Erode, Tamil Nadu production in 1997. They are headquartered in Erode, Tamil
638001 Nadu and their factory is in Cholangapalayam village of
Erode District. The group has ventured into other businesses
like Oil Refinery, Animal Feeds, Siddha and Ayurvedic
FACTORY products. SKM Europe BV is its subsidiary with 85% equity
stake and was formed as a Joint venture with B K Holdings
Erode – Karur Main Road BV of The Netherlands.
Cholangapalayam Village
Erode District – 638154 The Business
SKM Egg products are into manufacture of egg albumen
powder, egg yolk powder and whole egg powder. They
maintain two major product lines, one for Yolk based and
the other for albumen based products. The factory has a
capacity to process 1.2 million eggs per day and produce
4200 Tons of finished products in a year. They produce
BSE CODE SKMENG products in collaboration with the customers for recipes.
BSE SENSEX 14338.45
PRICE (BSE) 18.60 With the increasing concerns on food safety, SKM has
Mkt Cap (Cr) 48.97 installed an integrated software, TRACKKER, which enables
3M Avg Daily Vol 6248 them to track the batch codes, farm names and even to the
52 Wk H/L 30.75 / 15.25 extent of feed ingredients.
FV 10
Mr S K M Shree Shivkumar is the Managing Director and
Mr.S.K.M Maeilanandhan is the Executive Chairman. Mr B
SHAREHOLDING PATTERN % Ramakrishnan is the Nominee Director. Mr P Kumarasamy,
Promoters 63 Mr.S M Venkatachalapathy, Dr M Chandrasekhar,
MF, FI, FII, Banks - Mr.M.Chinnayan and Dr L M Ramakrishnan are the other
Free Float 37
TRADING HISTORY • PAT grew by 11%
Promoter Holdings 16599604 • Net profit margin declined from 12.67% to 11.70%
Public Holdings 9730396 Cost of producing high quality eggs being the lowest in India,
Jan-Mar 07 Avg Dly Vol 6248 the market for export of egg products is growing and SKM
As % of Public Holdings 0.064 has good potential to grow further.
Source: BSE India

Financials
(all Fig in Rs Cr)
FY07 FY06 FY05 FY04

SALES 89.81 71.64 65.93 51.27
TOTAL INCOME 91.42 75.77 66.16 51.33
EXPENDITURE 75.65 62.20 56.51 43.51
PBDIT 15.78 13.57 9.66 7.82
DEPRECIATION 2.70 2.40 2.23 1.77
PBIT 13.07 11.17 7.43 6.05
INTEREST 2.27 1.53 1.81 2.32
PBT 10.80 9.64 5.62 3.73
TAX 0.11 0.04 0.00 0.06
PROFIT AFTER TAX 10.69 9.60 5.62 3.67
NO OF SHARES 26330000 26330000 26330000 26330000
EQUITY CAPITAL 26.33 26.33 26.33 26.33
NETWORTH 52.24 41.55 35.24 31.68
CMP (Rs) 18.60 - - -
MKT CAP 48.97 - - -
P/E 4.58 - - -
EPS 4.06 3.65 2.13 1.40
NAV / Share (Rs) 19.84 15.78 13.38 12.03
RONW 20.47% 23.11% 15.93% 11.60%

May 25, 2007 SECTOR: FOOD PRODUCTS
AVT NATURAL PRODUCTS LTD
www.avtnatural.com

The AV Thomas Group diversified from their traditional
64, Rukmani Lakshmipathy Salai plantation business to start this AVT Natural Products Ltd
Egmore, Chennai, Tamil Nadu [AVT NPL] in 1994 under the leadership of Mr Ajit Thomas. A
600008 few other business ventures of the group are Rubber, Tea,
Coffee, Vanilla, Cardamom and Balck Pepper Plantations,
Biotech, Leather, Medical disposables and Information
FACTORIES Technology.
Madhya Pradesh Chichkeda The Business

Kerela Aluva AVT NPL is into manufacture of Natural Flavours, Natural
Tamil Nadu Sathyamangalam Colours, Essential Oils, Antioxidants and Specialty Products.
Andhra Pradesh Hindupur They have three major Strategic Business Units viz, Marigold
Karnataka Tumkur Oleoresins, Spice Oleoresins & Essential Oils and Value
Bydagi Added Tea.
They have implemented a Contract Farming Model which
enables them to maximize returns for their supplier farmers
and ensure quality produce at optimum cost. They have
BSE CODE AVTNPL implemented the model in 5 different locations in India and in
BSE SENSEX 14338.45 China to de-risk the impact of climatic changes and vagaries
PRICE (BSE) 96.60 of nature. They work in collaboration with Ball Helix, USA in
Mkt Cap (Cr) 73.55 seed development to suit local agro-climatic conditions.
52 Wk H/L 320 / 90 Promoters & Directors
FV 10 Mr Ajit Thomas is the Chairman and Mr M S A Kumar is the
Source: BSE India Managing Director. Mr Habib Hussain, Mr Shyam B Ghia and
Mr M A Alagappan are the other directors.

Promoters 69
MF, FI, FII, Banks - FY07 figures compared to FY06
Central / State Govt - • Sales increased marginally by 0.91%
Free Float 31 • Sales has grown at a CAGR of 11.63% during 2004-‘07
Source: BSE India • PAT grew by 16%
• Net profit Margin increased from 10.29% to 11.97%
India being one of largest exporters of spices in the world,
TRADING HISTORY AVT NPL with its Contract Farming Model and the Group’s
Promoter Holdings 5282426 core strength in Agriculture, its profitability is expected to
Public Holdings 2331774 increase in future.
Source: BSE India

Financials
(all Fig in Rs Cr)
FY07 FY06 FY05 FY04

SALES 72.37 71.72 57.29 52.03
TOTAL INCOME 72.77 72.91 58.17 52.47
EXPENDITURE 54.13 55.82 47.45 46.20
PBDIT 18.64 17.09 10.72 6.27
DEPRECIATION 2.01 2.03 2.01 1.99
PBIT 16.63 15.06 8.71 4.28
INTEREST 2.95 2.17 1.86 2.12
PBT 13.68 12.89 6.85 2.16
TAX 4.97 5.39 2.02 0.00
PROFIT AFTER TAX 8.71 7.50 4.83 2.16
NO OF SHARES 7614200 3807100 3807100 3807100
EQUITY CAPITAL 7.61 3.81 3.81 3.81
NETWORTH 41.66 29.15 23.86 20.75
CMP (Rs) 96.60 - - -
MKT CAP 73.55 - - -
P/E 8.44 - - -
EPS 11.44 19.70 12.69 5.67
NAV / Share (Rs) 54.72 76.56 62.66 54.50
RONW 20.91% 25.73% 20.25% 10.41%

HATSUN AGRO FOOD PRODUCTS LTD
www.hatsun.com
REGISTERED & CORPORATE OFFICE The Company

M/s Chandramogan & Co, a partnership firm, was started by
5A, Vijayaraghava Road Mr R G Chandramogan in 1970 and manufactured Ice Creams
T Nagar, Chennai, Tamil Nadu under the brand name of ‘ARUN’. In 1986, the company was
600017 changed to Hatsun Foods Pvt Ltd. It went public in 1995 and
got its name changed to Hatsun Agro Food Products Ltd.
FACTORIES The Business

The company is into manufacture and marketing of Milk and
Tamil Nadu Chennai Milk related products. It markets Ice Creams under the brand
Salem name of ARUN and Milk under the brand names of AROKYA &
Kancheepuram KOMATHA. In 1995, it stopped manufacturing Ice Creams and
Karnataka Belgaum involved only in marketing activities. The products were
sourced from Atlantic Foods [Proprietorship firm] and Hatsun
Foods Company [Partnership firm], which are associates of
the group.
In FY06, out of the Rs. 540 Cr sales turnover, 80% was
contributed by Milk & Milk powder and balance 20% by Ice
BSE CODE HATSUN Creams and other products. The Exports stood at 15% of the
BSE SENSEX 14338.45 total sales.
PRICE (BSE) 139.35
Mkt Cap (Cr) 94.60 Promoters & Directors
3M Avg Daily Vol 2154 Mr R G Chandramogan is the CMD and Mr K S Thanarajan is
52 Wk H/L 177.50 / 121 the Joint Managing Director. Mr C Sathyan is the executive
FV 10 Director. Mr Kirti P Shah, Mr P Vaidyanathan, Mr S
Source: BSE India Thiagarajan, Mr N Chandrasekharan and Mr B S Mani are the
other Directors.

Promoters 69 FY07 figures compared to FY06.
MF, FI, FII, Banks - • Sales has increased by 5.97%
Central / State Govt - • PAT grew by 12.42%
Free Float 31 • Net Profit Margin has increased from 0.77% to 0.83%
Source: BSE India With increasing price of milk, it happens to be the most
profitable segment of the company. However the same
affects the input cost for the Ice Cream segment. With a focus
TRADING HISTORY to increase its export revenues in Milk and Ice Creams the
Promoter Holdings 4668626 company’s only threat is the increasing competition. However
Public Holdings 2120192 their brand names enjoying a premium amongst other players
Jan-Mar 07 Avg Dly Vol 2154 in the market, the company shall grow in future.
Source: BSE India

Financials
(all Fig in Rs Cr)

SALES 572.63 540.34 449.19 361.91
TOTAL INCOME 577.81 547.98 450.78 373.86
EXPENDITURE 544.19 514.83 429.71 346.97
PBDIT 33.63 33.15 21.07 26.89
DEPRECIATION 15.57 15.49 13.77 12.97
PBIT 18.05 17.67 7.29 13.92
INTEREST 9.91 9.37 5.69 4.38
PBT 8.15 8.30 1.60 9.54
TAX 3.37 4.05 0.87 4.15
PROFIT AFTER TAX 4.77 4.25 0.74 5.39
NO OF SHARES 6788818 6788818 6788818 6788818
EQUITY CAPITAL 6.79 6.79 6.79 6.79
NETWORTH 30.25 25.48 23.01 22.27
CMP (Rs) 139.35 - - -
MKT CAP 94.60 - - -
P/E 19.82 - - -
EPS 7.03 6.25 1.08 7.93
NAV / Share (Rs) 44.56 37.53 33.89 32.80
RONW 15.78% 16.66% 3.20% 24.19%

LOTTE INDIA CORPORATION LTD
www.lotteindia.com

In 1914, EID Parry established a confectionary plant in
Dare House, Parry’s Corner Nellikuppam of Tamil Nadu. In 1954, the confectionary plant
Chennai, Tamil Nadu was floated as a new company under the name of Parry’s
600001 Confectionary Ltd [PCL]. Later, in 1981 Murugappa Group
took over the Parry’s Group. In 2004, the Murugappa Group
divested its entire shares of PCL to Lotte Confectionary Ltd,
FACTORY part of the South Korean based Lotte Group of Companies.
Nellikuppam, Cuddalore, TN The Business

Maraimalai Nagar, Chennai, TN Headquartered in Chennai, Lotte India has manufacturing
facilities in Nellikuppam and Maraimalai Nagar [near Chennai]
of Tamil Nadu. They are into manufacture and marketing of
various kinds of toffees and confectionary products. A few of
their product names are Lacto King, Coffee Bite, Caramilk,
Eclairs etc. In FY06, out of the Rs.132 Cr sales. 70% was
contributed by Toffees and 30% by confectionary and other
products.
BSE CODE LOTTE
BSE SENSEX 14338.45 Promoters & Directors
PRICE (BSE) 374.90 Mr Yong Tack Kim is the Chairman and Mr K V Ramachandra is
Mkt Cap (Cr) 141.39 the MD. Mr In Do Hwang is the Joint MD and Mr D G Rajan is
3M Avg Daily Vol 988 the Additional Director. Mr Sang Man Shim, Mr J Sahni,
52 Wk H/L 390 / 158 Mr.K.R Ganapathy, Mr Dong Bin Shin and Mr Sang Hoo Kim
FV 10 are the other Directors.
Source: BSE India
Remarks
SHAREHOLDING PATTERN % • Sales increased by 10.15%
Promoters Indian - • Sales has grown at a CAGR of 16.75% during 2004-‘07
Foreign 81 • PAT has reduced by 35%
MF, FI, FII, Banks 1 • Net profit Margin declined from 1.06% to 0.62%
Free Float 18
Source: BSE India In spite of increase in sales, the profits have dipped due to the
increase in costs of raw materials like sugar, milk and other
ingredients. However, Lotte India with its strong
TRADING HISTORY infrastructure and global expertise will improve its profits by
Promoter Holdings 3031647 adopting various cost control measures. With the increasing
Public Holdings 739642 disposable income of people the entire food industry is
Jan-Mar 07 Avg Dly Vol 988 growing and confectionary segment is no exception.
Source: BSE India

Financials
(all Fig in Rs Cr)

SALES 145.84 132.40 109.49 91.64
TOTAL INCOME 146.41 133.02 110.08 92.50
EXPENDITURE 138.44 124.70 102.34 84.49
PBDIT 7.97 8.32 7.74 8.01
DEPRECIATION 5.32 5.32 4.96 5.04
PBIT 2.65 3.00 2.78 2.97
INTEREST 0.35 -0.06 0.07 0.78
PBT 2.31 3.06 2.71 2.19
TAX 1.40 1.65 1.54 1.41
PROFIT AFTER TAX 0.91 1.41 1.17 0.78
NO OF SHARES 3771289 3771289 3771289 3771289
EQUITY CAPITAL 3.77 3.77 3.77 3.77
NETWORTH 47.74 46.83 45.42 44.25
CMP (Rs) 374.90 - - -
MKT CAP 141.39 - - -
P/E 155.94 - - -
EPS 2.40 3.74 3.10 2.07
NAV / Share (Rs) 126.58 124.18 120.44 117.34
RONW 1.90% 3.01% 2.58% 1.76%

SECTOR OVERVIEW
Healthcare Spending in US $ [Bn] % Contribution to GDP
50-70 6 -8.5
The healthcare market 80 10
including the Pharma 60 8
5.20
sector is expected to 6
40
more than double in
next 5 years 20
22.20 4
2 H
0 0
2007 2012 2007 2012
E
Private healthcare will be the largest by 2012 accounting for almost
CURRENT SCENARIO
AND PROJECTIONS
US $ 35 Bn A
The same will increase by another US $ 9 Bn if the Health Insurance
cover is made available
Medical Tourism currently valued at US $ 0.35 Bn is expected to grow
to US $ 2 Bn by 2012 L
Currently employing 4 Mn people, it is expected to double by 2012
Almos
Almost half the price than the developed countries
T
THE INDIA ADVANTAGE High success rate in major surgeries
Accreditation of Indian hospitals to global standards
H
Apollo Hospitals plans to set up facilities in Mauritius and Fiji apart
INVESTMENTS from its existing facilities in Colombo and Middle East
Wockhardt in tie up with various Healthcare insurance companies in C
US, UK and Singapore
Max Healthcare plans to set up facilities in US, UK and Far East
A
Launched a comprehensive programme to promote Medical Tourism
GOVERNMENT National Accreditation Boar
Boardd for Hospitals & Healthcare providers
INITIATIVES has facilitated an accreditation system for domestic hospitals R
THE FUTURE
With India undergoing changes in demographic profile, lifestyle
diseases are cropping up and medical spending is on the rise E
Cost advantage and high suc success
cess rate will continue to attract
foreigners visiting India for treatment

COMPANIES
1. KOVAI MEDICAL CENTER AND HOSPITALS LTD
2. DR AGARWAL’S EYE HOSPITAL LTD
3. DEVAKI HOSPITALS LTD
4. MALAR HOSPITALS LTD

May 25, 2007 SECTOR: HEALTH CARE AND HOSPITALS
KOVAI MEDICAL CENTER AND HOSPITALS LTD
www.kmchonline.com

Founded by Dr Nalla G Kuppuswami, Kovai Medical Center
P B No 3209, Avinashi Road and Hospitals Ltd [KMCH] was incorporated in 1985 as a
Coimbatore, Tamil Nadu public limited company. It was established in Coimbatore as a
641014 multispecialty hospital with the backing of various doctors
practicing in USA, UK and India. Under its Research and
Educational Trust it offers Graduate Courses in Pharmacy,
BRANCHES Nursing, Occupational Therapy, Physiotherapy and Post
Graduate Courses in Physiotherapy.
Coimbatore
Perundurai The Business
Erode KMCH is a multispecialty hospital with more than 30 medical
departments. It has a facility of more than 400 beds and 11
operation theatres. They treat around 500 patients and
perform 25 surgeries everyday. Their annual turnover is more
than Rs 60 Crores. They have specialty departments like Renal
Dialysis, Pulmonary, Endocrinology, Cardiothoracic,
Neonatology, Ophthalmology and Nuclear Medicine. They
BSE CODE KOVAIMD have two satellite centers each in Coimbatore and perundurai
BSE SENSEX 14338.45 of Tamil Nadu.
PRICE (BSE) 55
Mkt Cap (Cr) 60.18 Promoters & Directors
3M Avg Daily Vol 7505 Dr Nalla G Palaniswami is the Chairman and Managing
52 Wk H/L 70.65 / 33 Director. Dr Thavamani Devi Palaniswami is the Vice Chairman
FV 10 and Joint Managing Director. There are 10 other Directors and
Source: BSE India 2 Alternate Directors
.
Remarks
MF, FI, FII, Banks 2 • Sales increased by 26.30%
Central / State Govt - • Sales has grown at a CAGR of 22.3% during 2004-‘07
Free Float 55 • PAT grew by 39%
Source: BSE India • Net profit Margin has increased from 9.18% to
10.14%
Coimbatore city is expected to absorb more than 30000
TRADING HISTORY families in the next few years with the rise of IT Parks, Hotels,
Promoter Holdings 4756752 Educational Institutions and other industries and their
Public Holdings 6185510 demand for quality health care coupled with the increase in
Jan-Mar 07 Avg Dly Vol 7505 Medical Tourism to India prove to be a good opportunity for
As % of Public Holdings 0.121 KMCH to grow further.
Source: BSE India

Financials
(all Fig in Rs Cr)

SALES 64.66 51.20 40.62 35.35
TOTAL INCOME 65.14 51.72 41.00 35.64
EXPENDITURE 50.27 41.55 34.00 28.95
PBDIT 14.87 10.17 7.00 6.69
DEPRECIATION 3.43 3.10 3.02 2.60
PBIT 11.44 7.07 3.98 4.09
INTEREST 1.05 0.97 1.04 1.41
PBT 10.39 6.10 2.95 2.68
TAX 3.78 1.35 1.21 0.23
PROFIT AFTER TAX 6.61 4.75 1.74 2.45
NO OF SHARES 10942262 10942262 10942262 10942262
EQUITY CAPITAL 10.94 10.94 10.94 10.94
NETWORTH 22.72 16.11 13.47 13.24
CMP (Rs) 55.00 - - -
MKT CAP 60.18 - - -
P/E 9.11 - - -
EPS 6.04 4.34 1.59 2.24
NAV / Share (Rs) 20.76 14.72 12.31 12.10
RONW 29.08% 29.47% 12.95% 18.51%

May 25, 2007 SECTOR: HEALTHCARE AND HOSPITALS
DR AGARWAL’S EYE HOSPITAL LTD
www.dragarwal.com

Dr Agarwal’s Eye Hospital Ltd was incorporated in 1994 as a
19, Cathedral Road public limited company. Prior to this, Dr Agarwal’s family had
Chennai, Tamil Nadu been in the business of providing eye care for the past 5
600086 decades. They were rendering service through various
partnership firms which ceased to exist after the company
became public. They have branches in Chennai, Kanchipuram,
Villupuram & Vellore of Tamil Nadu and in Jaipur, Rajasthan.
The Business
Dr Agarwal’s Eye Hospital Ltd is into the business of providing
total eye care solutions. They have been adopting every new
technology in the field of ophthalmology. They perform
surgeries and render treatment to different kind of eye
ailments like Cataract, Myopia, Corneal Transplant, Glaucoma,
Pediatric, Squint Treatment etc. In FY06 their annual sales
turnover stood at Rs 13 Crores.
BSE CODE DRAGARWAQ Promoters & Directors

BSE SENSEX 14338.45 Dr J Agarwal is the Chairman and Whole Time Director.
PRICE (BSE) 41 Dr.(Mrs) T Agarwal is the Managing Director. Dr Amar Agarwal
Mkt Cap (Cr) 13.33 is the Joint Managing Director. Dr Athiya Agarwal and
3M Avg Daily Vol 6308 Ms.Sudha are Whole Time Directors. Apart from the above,
52 Wk H/L 57 / 23.45 there are five other Directors on the Board.
FV 10
Source: BSE India
Remarks
• Sales has grown at a CAGR of 31.35% during 2004-‘07
Promoters 41
• PAT grew by 233%
MF, FI, FII, Banks -
• Net Profit Margin has increased from 3.94% to 9.04%
Free Float 59
Source: BSE India
The hospital enjoys a very high reputation for their eye care
treatments which will continue to earn them good business
with increasing concern for eye care among the up coming
generation. Though their growth has been slow paced during
TRADING HISTORY
2004-’06, FY07 has been an extraordinary performance.
Except for the risk of obsolescence of medical equipments
there is no any serious threat to its business.
Source: BSE India

Financials
(all Fig in Rs Cr)

SALES 20.66 13.22 12.27 9.12
TOTAL INCOME 21.32 14.70 13.52 9.49
EXPENDITURE 16.68 12.07 10.36 7.22
PBDIT 4.64 2.63 3.16 2.27
DEPRECIATION 1.51 1.64 1.52 0.98
PBIT 3.12 0.99 1.64 1.29
INTEREST 0.12 0.07 0.10 0.11
PBT 3.00 0.92 1.54 1.18
TAX 1.07 0.34 0.56 0.42
PROFIT AFTER TAX 1.93 0.58 0.98 0.77
NO OF SHARES 3250000 3250000 3250000 3250000
EQUITY CAPITAL 3.25 3.25 3.25 3.25
NETWORTH 6.80 4.88 4.75 4.20
CMP (Rs) 41.00 - - -
MKT CAP 13.33 - - -
P/E 6.91 - - -
EPS 5.93 1.78 3.03 2.35
NAV / Share (Rs) 20.93 15.00 14.62 12.93
RONW 28.34% 11.88% 20.71% 18.20%

DEVAKI HOSPITALS LTD
www.devaki.in

Eskeycee Medical Foundation Pvt Ltd promoted by
148, Luz Church Road Dr.K.Chockalingam established Devaki Hospitals in 1978 as a
Mylapore, Chennai, Tamil Nadu Multi Specialty Hospital. Later in 1990 it got changed to
600004 Devaki Hospitals Ltd. Dhanalakshmi Bank holds a part of the
equity in Devaki Hospitals Ltd.
The Business
Initially started of as a specialty hospital with 60 beds
specializing in Trauma care it expanded to 100 beds in 1990.
They were the pioneers in accident and emergency care and
were the first private hospital to handle medico legal cases.
Currently the hospital is doing a business of worth Rs.7 Cr.

Mr A N Radhakrishnan is the Chairman and Mr Naveen
Rokesh is the Managing Director. Mr Vijay Agarwal is the
Additional Director. Dr C Ramesh Babu, Mrs Premalatha
BSE CODE DEVAKIHOS Kanikannan, Dr M Ganapathy, Dr C R Sundararajan and
BSE SENSEX 14338.45 Mr.R.Choudhury are the other Directors.
PRICE (BSE) 16.35
Mkt Cap (Cr) 12.21
Remarks
52 Wk H/L 28.70 / 14.35
FV 10
• Sales has increased by 4%
Source: BSE India
• Sales has grown by a CAGR of 7.19% during 2004-‘07
• PAT has reduced by 62%
• Net Profit Margin has declined from 11.50% to 4.62%
Promoters 25
The hospital’s turnover has hardly grown, given the potential
of Chennai and its location in the heart of the city. Over the
past 4 years the turnover has increased by a little more than
Free Float 73
Source: BSE India
Rs 1 Cr. Moreover the PAT and Net Profit Margins have
declined. Though the hospital made a turn around in FY06
from its losses in the previous years, it has failed to retain the
performance in FY07. Devaki Hospitals Ltd does not reflect
TRADING HISTORY
any growth indicators.
Source: BSE India

Financials
(all Fig in Rs Cr)
FY07 FY06 FY05 FY04
SALES 7.56 7.27 5.96 6.14

TOTAL INCOME 8.20 8.78 6.21 6.28
EXPENDITURE 6.94 6.80 5.65 6.79
PBDIT 1.26 1.98 0.56 -0.51
DEPRECIATION 0.44 0.50 0.63 0.63
PBIT 0.82 1.49 -0.07 -1.14
INTEREST 0.41 0.36 0.67 0.80
PBT 0.41 1.13 -0.74 -1.94
TAX 0.03 0.12 0.00 0.08
PROFIT AFTER TAX 0.38 1.01 -0.74 -2.01
NO OF SHARES 7468920 7468920 4950000 4950000
EQUITY CAPITAL 7.47 7.47 4.95 4.95
RESERVES AND SURPLUS -0.17 -0.55 -2.19 -1.96
NETWORTH 7.30 6.92 2.76 2.99
CMP (Rs) 16.35 - - -
MKT CAP 12.21 - - -
P/E 32.22 - - -
EPS 0.51 1.35 -1.49 -4.07
NAV / Share (Rs) 9.77 9.26 5.58 6.04
NET PROFIT MARGIN 4.62% 11.50% -11.89% -32.04%
RONW 5.19% 14.58% -26.74% -67.32%

MALAR HOSPITALS LTD

Malar Hospitals Ltd was initially incorporated as a Private
52, I Main Road, Gandhi Nagar limited company in 1989 and later went public. It is
Adyar, Chennai, Tamil Nadu headquartered in Chennai, Tamil Nadu.
600020
The Business
Malar Hospitals Ltd has a facility of 250 beds and is well
known for treatment of heart ailments. Malar Heart
Foundation was started in 1996 and since then it has
performed more than 1500 angiograms and 200 Coronary
Interventional Procedures. It enjoys a success rate of 99.60%
of the 1050 open heart surgeries. They are the only hospital in
Chennai to have a Brain Mapping System. The novel feature
of Malar Hospitals is its Intensive Cardiac Care Unit whose
bedside monitors are connected with the Cardiologists
residence computer. Currently they do a business turnover of
Rs 15.97 Cr.
BSE CODE MALAR Promoters & Directors

BSE SENSEX 14338.45 Dr . [Mrs] . Nithiya Ramamurthy is the Whole Time Director.
PRICE (BSE) 19.75 Mr R Subramanian, Mr R M Sockalingam, Mr V
Mkt Cap (Cr) 27.51 Chandrasekharan, Prof S Kameswaran and Mr M
3M Avg Daily Vol 17104 Ramakrishnan are the other Directors.
52 Wk H/L 31.50 / 7.67
FV 10
Remarks
Source: BSE India

• Sales increased by 15.13%
• PAT grew by 65.76%
Promoters 30
• Net profit Margin increased from 3.08% to 4.42%
Being one of the reputed hospitals in treating complicated
Free Float 69
Source: BSE India
heart ailments Malar Hospitals Ltd is poised for good growth.
They also embrace new technologies at the earliest to keep
pace with the changing trends. In the long run the company
will grow as the Medical tourism in India is expected to grow
TRADING HISTORY
in the future.
Source: BSE India

Financials
(all Fig in Rs Cr)
FY07 FY06
SALES 15.97 13.87

PBDIT 4.28 2.96
PBIT 2.57 1.44
INTEREST 1.80 0.99
PBT 0.76 0.45
TAX 0.03 0.01
NO OF SHARES 13927593 13927593
RESERVES AND SURPLUS 0.73
CMP (Rs) 19.75 -
MKT CAP 27.51 -
P/E 37.63 -
EPS 0.52 0.32
NAV / Share (Rs) 10.52 10.00
RONW 4.99% 3.17%

SECTOR OVERVIEW T
5
Foreign Tourist Arrival [Mn]
4.50 O
The Inbound tourism 3.60
4
2.90
showing a double digit
increase for the fourth
3
2.40
U
consecutive year 2
1
0
R
FY03 FY04 FY05 FY06
I
Foreign tourist arrivals have grown at a CAGR of 6% since 2000
CURRENT SCENARIO FY06 recorded the highest ever 4.5 Mn foreign tourist arrivals
AND PROJECTIONS It contributes to 5.9% of the GDP and employs 42 Mn people S
The Industry is poised to grow from the current US $ 40 Bn to US $ 90
Bnn in the next decade
Online travel booking is valued at US $ 0.80 Bn M
Cost advantage in the healthcare industry to attract Medical Tourism
THE INDIA ADVANTAGE With Adventure Tourism, Heritage Tourism, Pilgrimage Tourism, Eco
Tourism, Wildlife Tourism etc the scope for theme travel is vast
&
Global hospitality majors like Dawnay Day, Golden Tulip, Whitebread,
INVESTMENTS Istithmar, Mandarin Oriental and Jumeirah are vying to enter the
Indian tourism market
GOVERNMENT
100% FDI approval
By hosting 2010 Commonwealth Games the industry revenues are
H
INITIATIVES expected to rise
Spent US $ 16 Mn on the Incredible India campaign
Proposal for a conditional 10 yr tax holiday for all tourism projects is
O
in progress
Upgradation of airports in major cities
T
Growing Indian economy will boost the inflow of business travelers
trave
THE FUTURE Growth in the Healthcare industry will increase medical tourism E
L
S
COMPANIES
1. VELAN HOTELS LTD
2. SAVERA INDUSTRIES LTD

May 25, 2007 SECTOR: TOURISM AND HOTELS
VELAN HOTELS LTD
www.velanhotels.com

Velan Hotels Ltd [VHL] was incorporated as a private company
Green Fields, 41, Kangayam Road in 1990 and later converted into a public limited company in
Tiruppur, Tamil Nadu 1992. Headquartered in Tiruppur, it has branches in Coonoor,
641604 Tamil Nadu.
The Business
RESORTS & HOTELS Velan Hotels Ltd is into the business of operating Hotels and
other Tourism related services in Tiruppur and Coonoor. Their
Tamil Nadu Coonoor clientele include both domestic and international guests. They
Tiruppur have a Specialty Restaurant, Swimming Pool and Health Club
to attract the international guests. In FY06 their annual sales
turnover stood at Rs 9.30 Crores. Out of the Total Income
earned 63% is contributed by the accommodation charges,
30% by Food and Beverages and balance 7% by Liquor [traded
in the bar & restaurant].

BSE CODE VELHO Mr R V E Venkatachalam is the Chairman and Mr E V
BSE SENSEX 14338.45 Muthukumara Ramalingam is the Managing Director. Mr T
PRICE (BSE) 13.99 Gopalakrishnan, Mr P Ganesan, Mr Karthik Namasivayam and
Mkt Cap (Cr) 10.84 Dr K A Balasubramaniam are the other Directors.
52 Wk H/L 20.10 / 9.99 Remarks
FV 10
Source: BSE India FY07 figures compared to FY06
• Sales increased by 6.70%
• PAT grew by 6.30%
SHAREHOLDING PATTERN % • Net Profit Margin is almost stagnant at 10.70% level
Promoters 55
MF, FI, FII, Banks 3 Tiruppur being the textile hub of Tamil Nadu, the major
Central / State Govt - business is only export of garments. Further, the
Free Float 42 government’s plan set up various textile parks has also
Source: BSE India increased the business activities in Tiruppur. In turn the inflow
of foreign and domestic buyers is expected to increase. The
Coonoor branch is also performing well with the number of
TRADING HISTORY tourists coming to Ooty increasing every year. Considering all
Promoter Holdings 4256900 the above factors VHL has a good opportunity in the near
Public Holdings 3493100 future to increase its sales revenues.
Source: BSE India

Financials
(all Fig in Rs Cr)
FY07 FY06 FY05 FY04

SALES 9.93 9.30 8.53 7.11
TOTAL INCOME 10.73 10.07 9.20 7.66
EXPENDITURE 7.95 7.36 7.08 5.98
PBDIT 2.78 2.70 2.12 1.69
DEPRECIATION 0.61 0.60 0.64 0.63
PBIT 2.17 2.10 1.48 1.06
INTEREST 0.91 0.93 0.69 0.42
PBT 1.27 1.17 0.79 0.64
TAX 0.12 0.09 0.06 0.05
PROFIT AFTER TAX 1.15 1.08 0.73 0.59
NO OF SHARES 7750000 7750000 7750000 7750000
EQUITY CAPITAL 7.75 7.75 7.75 7.75
RESERVES AND SURPLUS -0.36 -1.51 -2.25 -3.32
NETWORTH 7.39 6.24 5.50 4.43
CMP (Rs) 13.99 - - -
MKT CAP 10.84 - - -
P/E 9.44 - - -
EPS 1.48 1.39 0.94 0.76
NAV / Share (Rs) 9.53 8.05 7.10 5.72
RONW 15.54% 17.31% 13.20% 13.34%

May 25, 2007 SECTOR: TOURISM AND HOTELS
SAVERA INDUSTRIES LTD

The company was originally set up as a partnership firm in
146, R K Salai, Mylapore 1965 by Mr A Venkatakrishna Reddy, Mr M Ramaraghava
Chennai, Tamil Nadu Reddy and Mr A Shyamasundara Reddy. In 1969 they
600004 promoted Savera Enterprises Ltd [SEL] under the name of
Savera Hotels Private Limited, a private concern. In 1985 the
partnership firm was dissolved and SEL took over all the
assets & liabilities. Later in 1976, it got converted into Savera
Industries Ltd, a public limited company.
The Business
Savera Industries Ltd is engaged in the management of Savera
Hotel, a Four Star hotel located in Chennai. They have more
than 125 rooms with all facilities like swimming pool, permit
room, an exclusive restaurant for Mughalai food, conference
hall, pastry shop etc. Currently they do an annual sales
turnover of Rs 38 Cr.
With the tourism sector growing, they have plans to enter the
BSE CODE SAVERAIND market in Madurai, Coimbatore and Hyderabad. They also
BSE SENSEX 14338.45 have plans to diversify into Floriculture business in Ooty by
PRICE (BSE) 70.90 acquiring an existing company.
Mkt Cap (Cr) 42.28
52 Wk H/L 90 / 47.05 Mr A Ravikumar Reddy is the MD and Ms A Nina Reddy is the
FV 10 Executive Director. Mr A Nivruthi is the Additional Director.
Source: BSE India Mr M Chakravarthy, Mr A Tarun Reddy and Mr S Rajaratnam
are the other Directors.

MF, FI, FII, Banks 1 • Sales increased by 27.50%
Central / State Govt - • PAT grew by 72.34%
Free Float 43 • Net Profit Margin has increased from 9.30% to
Source: BSE India
12.51%
Chennai being one of growing business metros in India and
various MNCs setting up their manufacturing & service
TRADING HISTORY facilities in Chennai, the number of business travelers and
Promoter Holdings 3313067 tourists is increasing. Savera Hotel, enjoying a location
Public Holdings 2650933 advantage in the heart of the city is all set to earn higher
Jan-Mar 07 Avg Dly Vol 10263 revenues in the years to come. The other business ventures
As % of Public Holdings 0.387 shall also add up to their sales revenues.
Source: BSE India

Financials
(all Fig in Rs Cr)
FY07 FY06 FY05 FY04
SALES 38.29 30.04 25.08 20.38

TOTAL INCOME 38.52 30.06 25.13 20.39
EXPENDITURE 27.25 23.28 20.71 17.54
PBDIT 11.26 6.77 4.42 2.86
DEPRECIATION 1.89 1.72 1.78 1.40
PBIT 9.38 5.06 2.64 1.45
INTEREST 2.05 1.06 1.28 1.21
PBT 7.32 3.99 1.35 0.25
TAX 2.51 1.20 0.11 0.02
PROFIT AFTER TAX 4.82 2.80 1.25 0.23
NO OF SHARES 5964000 5964000 5964000 5964000
EQUITY CAPITAL 5.96 5.96 5.96 5.96
RESERVES AND SURPLUS 4.82
NETWORTH 10.78 5.96 5.96 5.96
CMP (Rs) 70.90 - - -
MKT CAP 42.28 - - -
P/E 8.78 - - -
EPS 8.08 4.69 2.09 0.38
NAV / Share (Rs) 18.08 10.00 10.00 10.00
RONW 44.68% 46.86% 20.91% 3.84%

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ANALYSIS OF SMALL

Submitted in Partial Fulfillment of the Requirements for the

MASTER OF BUSINESS ADMINISTRATION

BHARATHIDASAN INSTITUTE OF MANAGEMENT

S GANESH KUMAR 23014

S GANESH KUMAR 23014

2. RELIGARE – COMPANY PROFILE

3. SCOPE OF THE PROJECT

c. TECHNICAL v/s FUNDAMENTAL ANALYSIS

S GANESH KUMAR 23014

and Tourism & Hotels.

It involves a thorough analysis of the Company’s Background, History, Promoter and

by highlighting the Industry Performance, Government’s Support & Initiatives, Investment

Activities and the Future Trend of the industry.

S GANESH KUMAR 23014

S GANESH KUMAR 23014

S GANESH KUMAR 23014

In general, company analysis is done on two bases

Economy wide factors 30-35 percent

Industry factors 15-20 percent

Company factors 30-35 percent

Other factors 15-25 percent

S GANESH KUMAR 23014

following three step analysis

Economy - Understanding the macro-economic environment and its developments

national level. This analysis looks into

The global economy

S GANESH KUMAR 23014

Industry life cycle analysis

done in two stages.

Study of the financials

Some of the important indicators used in this analysis are,

S GANESH KUMAR 23014

that low or negative earnings always indicate a bad stock.

Earnings Per Share [EPS]

S GANESH KUMAR 23014

calculate the price-to-sales ratio [PSR] instead

of shares of stock it has outstanding.

Return On Equity [ROE]

S GANESH KUMAR 23014

Technical v/s Fundamental Analysis

technical analysis they study the effect.

S GANESH KUMAR 23014

4. CONSTRUCTION AND REAL ESTATE

6. MEDIA AND ENTERTAINMENT

9. HEALTHCARE AND HOSPITALS

10. TOURISM AND HOTELS

S GANESH KUMAR 23014

Exports have grown by 28% to reach the current US $ 1.8 Bn

Highly qualified Engineering Skills

Increasing investments in production capacities

1. UCAL FUEL SYSTEMS LTD

2. SAMKRG PISTONS AND RINGS LTD

3. RANE BRAKE LININGS LTD

5. INDIA MOTOR PARTS & ACCESSORIES LTD

6. INDIA NIPPON ELECTRICALS LTD

7. IGARASHI MOTORS INDIA LTD

S GANESH KUMAR 23014

REGISTERED OFFICE The Company

SHAREHOLDING PATTERN % They majorly supply to 4 wheeler manufacturers like Maruti,

Mr S Muthukrishnan is the Chairman. Mr K Jayakar is the vice

S GANESH KUMAR 23014

(all Fig in Rs Cr)