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Reliance Energy bags Rs 1,200cr contracts::::::

_________News Media NSEMUMBAIBULL__________30th March 2008_______
Reliance Energy (REL), an Anil Dhirubhai Ambani Group company, has bagged two contracts worth about Rs 1,200 crore for the execution of 400 KV extra high voltage transmission systems. The company said the contracts were bagged by its engineering, procurement and construction (EPC) division.

The contracts were awarded by two independent private transmission companies that are 100% owned by Reliance Power Transmission.

The contracts are for two projects - Western Region System Strengthening Scheme (WRSSS) Project B covering about 1,000 km in Maharashtra and WRSSS Project C spread around 500 km in Gujarat.
The company has also applied for obtaining two separate transmission licences from Central Electricity Regulatory Commission.

ABC Paper plans to invest in new facility::::::

_________News Media NSEMUMBAIBULL_________30th March 2008_______
Punjab-based ABC Paper on Saturday said it is planning to set up a new agro-based paper manufacturing facility either in Maharashtra or in Madhya Pradesh with an estimated investment of Rs 800-1,000 crore.

"We are looking to establish a new facility in Maharashtra or in Madhya Pradesh as part of our capacity expansion programme and we are still in the process of identifying a suitable location in terms of raw material availability for the plant," ABC Paper Managing Director Pavan Khaitan told reporters here on Saturday.
Expected to be commissioned by 2010, the plant would have manufacturing capacity of 500 tons per day.
The company is also planning to ramp up its capacity at Hoshiarpur plant for which it has earmarked Rs 180 crore.

"We will double our production capacity to 1.20 lakh tons per annum under our current expansion programme, which will be completed by March 2009," he said.

The company is expecting a turnover of Rs 350 crore in FY'09 after the completion of expansion at Hoshiarpur, as against Rs 200-crore turnover in 2007-08.

As a part of its measures to bring operational efficiency, the company is also contemplating of using recycled paper as input for production.

Against just 8 per cent use of recycled paper by the industry in India, paper sector in the US uses almost 40 per cent of waste paper in production.

selling into the uptrends.

Pretty much everybody expects a recession, but with most people still forecasting a fairly mild recession, investors are keeping their fingers on the pulse of the economy. Stocks had posted gains in the previous week, after the near collapse. But with investors now looking ahead to the end of the first quarter on Monday, money managers are scrambling to ditch under-performing stocks to buy better performing issues in order to embellish portfolios. Shaken by the biggest credit crisis in decades, the market put in a dismal performance for the first quarter to date.

Since the start of the year so far, the Nifty has lost 1223 pointsWith the start of a new month next week, investors will also start looking toward the first-quarter earnings season, and be on alert for possible profit warnings from companies struggling with the impact of the credit crisis and a slumping economy. Warnings are coming across many sectors and unless earnings come in better, we'll continue to see selling into the uptrends.
Rajesh Dubey

Inflation redefines value of money

Sreekumar Raghavan March 29, 2008 14:09 IST

Is an inflation rate of 6.8 percent bad news for India when countries like Zimbabwe have hyper-inflation of 100,000 percent?

In 1981 we had an inflation rate of 10.4 percent when GDP growth was over six percent. In 1991, inflation was as high as 13.1 when GDP growth was just one percent. Why are the common man and the policy makers worried about inflation?

This brings us to the definition of inflation? A common man understands that there is inflation when he buys his usual list of commodities from the market. If there is an appreciable increase in prices, there is indeed inflation and the media is already full of such bad news.

A simple definition of inflation is an increase in prices and or decline in purchasing power. However over the years, the definition of inflation has undergone a change.

According to the Webster's New Universal Unabridged Dictionary published in 1983 the second definition of 'inflation' after 'the act of inflating or the condition of being inflated' is:
"An increase in the amount of currency in circulation, resulting in a relatively sharp and sudden fall in its value and rise in prices: it may be caused by an increase in the volume of paper money issued or of gold mined, or a relative increase in expenditures as when the supply of goods fails to meet the demand."

So this broader definition focuses on money supply. If there is more money supply, it causes an increase. So inflation is a cause rather than effect.

The American Heritage Dictionary of the English Language, 2000 (4th Edition) defines it more broadly: a persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.
In this definition, inflation would appear to be the consequence or result (rising prices) rather than the cause.
So between 1983 and 2000 the definition appears to have shifted from the cause to the result. Also note that the cause could be either an increase in money supply or a decrease in available goods and services.

What if there is no inflation? We have observed that when there is overproduction of crops, farmers are forced to sell below production costs. A few years ago when there was overproduction, tomatoes were sold for Rs 1 per kilo which is bad for producers. But in a rising inflation scenario all people suffer, some more than the others.
In India, inflation is a political issue but a lower inflation rate does not guarantee success in elections which the Congress government learnt in 1996 when the rate climbed down to 6.5 percent as against 13 percent in 1991.
However, political parties need to go by public sentiments, which are often against a rising inflation.

Look at the official reactions. Finance Minister P Chidambaram in Singapore blamed US for creating commodity inflation by diverting food crops for bio-fuel and also creating global financial uncertainties by sub-prime lending.
At the same time he announced in the Budget that the country is going to have a record output of food grains this year. So where are the bottlenecks really?

It could be the rising oil prices both edible oil and crude oil or some other global trends over which the FM or RBI has no control. So the question why have a tight monetary policy?

In terms of action also the government cannot be blamed -- it has made exports difficult by raising the minimum export prices of essential commodities and imports by reducing duty on edible oils.

T Nanda Kumar, Secretary, Food, Consumer Affairs and Public Distribution said in an interview that supply side bottlenecks for essential commodities are being addressed.

From the technical point of view, inflation now is different from inflation experienced before because of high foreign exchange reserves that put pressure on rupee to appreciate.

These are tough times for the industry and policy makers then. For the industry, productivity gains have to be long enough to compensate the rising rupee and inflation levels that make them uncompetitive, according to an analyst.
History shows that high inflation rates could correct itself over a period of time through a combination of market forces and government regulation. Or perhaps it is god's way of letting people know the value of money.

S.Sujai Gangatharan

U.S. Stocks Decline as Analysts Predict Bigger Losses for Banks


Bloomberg report

U.S. Stocks Decline as Analysts Predict Bigger Losses for Banks

By Lynn Thomasson
March 29 (Bloomberg) -- U.S. stocks extended their worst quarterly decline since 2002, falling for the fourth time in five weeks, on the prospect of dividend cuts and deeper earnings declines for financial companies.
Banks and brokerages had the biggest weekly slump in two months after analysts at Goldman Sachs Group Inc., Sanford C. Bernstein & Co. and Lehman Brothers Holdings Inc. said financial company earnings will be less than previously estimated. Bigger losses will force Citigroup Inc. and Bank of America Corp., the biggest U.S. banks by assets, to cut their dividends, Oppenheimer & Co.'s Meredith Whitney said.
``People are wondering what else could happen'' to financial companies, said Vivienne Hsu, a San Francisco-based money manager with Schwab Investment Management, which oversees almost $40 billion. ``It's like one big earthquake and then several little aftershocks, and I expect these aftershocks to continue.''
The Standard & Poor's 500 Index lost 1.1 percent to 1,315.22 this week. The Dow Jones Industrial Average fell 1.2 percent to 12,216.40. The Russell 2000 Index of small-cap stocks rose for a third straight week, the longest streak since May, adding 0.3 percent to 683.18.
Financial firms in the S&P 500 lost 7 percent as a group and made up seven of the ten biggest declines in the S&P 500 this week. At least a dozen analysts have reduced profit estimates in the past six weeks for the biggest banks and securities firms. The industry worldwide has already reported $208 billion in losses related to the collapse of the U.S. subprime mortgage market, according to Bloomberg data.
Dividend Reductions?
Citigroup, Bank of America, Wachovia Corp. and Wells Fargo & Co. won't be able to support their current dividends as earnings falter, Whitney said. The analyst, who correctly predicted Citigroup would cut its payout two months before its first-ever reduction, said the New York-based bank will report a quarterly loss four times larger than her previous estimate. Citigroup shares, which have declined 29 percent this year, tumbled 7.4 percent to $20.83 this week.
``What we find is that there seems to be layer after layer of various, strange financial instruments,'' Alfred Kugel, who manages $17 billion as chief investment strategist at Atlantic Trust in Chicago, said during a Bloomberg Television interview. ``Our guess is that we're going to have a big rally in the financials at some time, but it is down the road.''
Writedown Estimate
Bank of America fell for the third time in four weeks, losing 9.1 percent to $38.07. Goldman Sachs analysts reduced their earnings-per-share estimate for this year to $3.35 from $4.05, citing an estimated $3 billion first-quarter writedown.
Merrill Lynch & Co. slumped 15 percent to $39.93. Bernstein analyst Brad Hintz said the biggest U.S. brokerage may write down $4.5 billion on collateralized debt obligations and post a first- quarter loss. He cut Merrill's first-quarter estimate to a loss of $1.60 a share, down from an earlier estimate for profit of $1.30 a share.
Lehman analyst Jason M. Goldberg lowered his earnings estimates for large and mid-sized U.S. banks this year by 7 percent and said he expects higher-than-forecast loan-related losses.
Clear Channel Communications Inc. had the steepest weekly decline since July 2002, dropping 16 percent to $29.20. The biggest U.S. radio broadcaster said its sale to private-equity firms may collapse after banks financing the purchase failed to show up at a meeting scheduled to close the deal.
Profit Miss
Apollo Group Inc. lost 30 percent to $41.21. The operator of the for-profit University of Phoenix reported quarterly profit that was 21 percent less than analysts estimated, according to Bloomberg data.
The yield on 10-year Treasury notes climbed to 3.45 percent from 3.33 percent as traders pared bets on additional interest- rate cuts by the Federal Reserve. Two-year yields increased to 1.65 percent from 1.60 percent.
The U.S. lost jobs for a third month in March and manufacturing contracted at the fastest pace in five years, signs the economy continues to turn down, economists said before reports next week.
Payrolls probably shrank by 50,000, according to the median estimate of economists surveyed by Bloomberg News before the Labor Department's April 4 report. The last time the economy lost jobs for at least three consecutive months coincided with the start of the Iraq War in 2003.
The Institute for Supply Management may report April 1 that its factory index fell to 47.5 this month, the lowest level since April 2003, from 48.3 in February, according to the survey median. A reading of 50 is the dividing line between expansion and contraction.
To contact the reporter on this story: Lynn Thomasson in New York at
Last Updated: March 29, 2008 08:44 EDT

Rajesh Dubey

Good stocks for a beginner

Sorry for the bad format below, but I had sent it out to members of another group. Recommend that you buy a bit of each company, and do it multiple times (i.e 20% of shares every 2 weeks over the next 4 months)......

REVATHI Revathi Equipment Limited Kukkuji Reco; Looking for more acquisitions; Doing RE partnership;

PUNJLLOYD Punj Lloyd Limited L&T Success Coming....strong order position and Investments in PSL and Ramprastha JV could add significant value;

PNBGILTS PNB Gilts Limited Kukkuji Reco

POWERGRID Power Grid Corporation of India Limited Power Hunger till 2012; Inv to pick up substantially from FY10 (> INR 100 bn annually) for 11th Plan; Telecom tower business to contribute ~8-12% by FY10;

524019 HYDRO S&S FI VIji Reco for LT

DLF DLF Limited Own Piece of India REIT; Focus on high-margin, non-residential segments (83%), this market leader (in terms of quality and size of land bank, execution capability, and brand equity) is insulated from slowdown;

CAIRN Cairn India Limited Big Oil Play based on 1) our above-consensus bullish outlook on crude prices, 2) its high leverage to crude prices, 3) lower execution risk in the Rajasthan development project and 4) potential for further increase in Rajasthan peak production level;

522108 YUKEN INDIA Kukkuji Reco; Machine tool sector to pickup; Global outsourcing story is intact; Better earnings ahead;

PRATIBHA Pratibha Industries Limited Kukkuji Reco for LT Prospects; Received the Certificate of Registration for its quality management system; Now fully geared to manufacture pipes for supply to the oil & gas segment;

HCC Hindustan Construction Co. Ltd Engg and Const Exposure is a must since India Infra needs it

JPASSOCIAT Jaiprakash Associates Limited Mega Play for Peanuts; Has value unlocking potential with regard to JP Power Ventures, awarding land to Jaypee Infratech and potential value from the Ganga-Balia Expressway, which would act as trigger;

532469 MATHER & PUM Kukkuji's Reco - Benefit by the fast growing pump markets in Asia and Eastern Europe where a lot of activity is taking place in waste-water treatment, municipal water supply and construction



I very strongly recomended rico auto industries ltd cmp 28.35 target whethen a week is 35 and above. This company is very sound company

And salary hike must effect auto industries . And i stated that this is not an auto company this is a leading high potential groth making company. This is very low cmp /

High risk high return scrips

Sreenath Raghav

DGP Securities (509695) (Rs 367) :- High risk investors should consider taking exposure to the scrip of DGP Securities. According to some market rumors, the scrip is expected to witness a great deal of buying from high networth individuals (HNI). One of the leading broking firms has been recommeding this scrip to their HNI clients. With good amount of buying expected the scrrp is expected to move upwards.

Hydro S&S Ind. (524019) (Rs 55) :- Hydro S&S Industries manufactures and supplies plastic products. According to news given by some market khabri, the company is covered by a small brokerage house, due to which it is expected to appreciate by 15- 20 per cent on the bourses. Investors with high riskppetite may consider this crip.

ANG Auto (530721), (Rs. 100) :- ANG Auto stocks have fallen significantly in the recent market crash. However, according to some market rumours, the AGN Auto management may possibly go for a buy-back in the coming months. If it does happen, this will surely help the scrip to rise amply. If you are an investor with luck on your side, you should seriously consider this Scrip.

Simplex Projects (532877) (Rs 332) :- Simplex Projects is likely to have a positive outlook owing to boom in the infrastructure sector. According to reports collected from some internal sources of the company it is learnt that Simplex Projects is likely to increase its margins in the coming months. This will certainly add significant
value and offer better prospects to the company. Investors who want to take advantage of this hot sector should see this opportunity to make money.

JP Associate (532532) (Rs 219.10) :- JP Associate has seen enough correction in the past few weeks and is deeply oversold close to the long-term supports. An investment buy is advised for the counter as a sizeable rebound is expected because of Jaiprakash replacing Bajaj Auto in the Sensex companies. Due to this big move technical experts expect the scrip to appreciate by 15- 20 per cent from the curren level in the coming days Investors can look at this counter for making a decent gain.

Borosil Glass Works (502219) (Rs 681) :- Borosil Glass is likely to see some action in the coming days because according to some rumour in the market the company is likely to go for some private placement of its equity. Sniffing the opportunity some FIIs are already coming forward to participate. If this development turns out to be true expect the scrip to gain momentum and see it rising on the bourses. Investors should consider this counter and take advantage of the current development of events.

Unitech (507878) (Rs 265.95) :- Unitech is in the areas of construction of industrial projects and execution of housing projects and export orders. The technical call is given for the stock as it is likely to witness 15 to 20 per cent correction within the next couple of weeks as a breakdown from reversal pattern has been spotted on daily chart on above average volumes.

Escorts (500495) (Rs 91.75) :- Escorts Construction Equipment, India's leading multi product construction equipment manufacturer from the Escorts Group is in the news. It is rumoured tha that company is expected to raise funds by selling its stake for further expansion. The institutional investors likely to buy stake in the company will hold substantial stake. If this turns out to be real, Escorts will certainly touch the charts. Investors with risk appetite can look forward to invest in this scrip.

Courtesy : Smart Investments

Sreenath Raghav

Stock Watch : Accurate Transformers Ltd / Spanco Telesystems / ANG Auto Ltd / Greaves Cotton Ltd

Sreenath Raghav

Hi, Read the following stock tips.........

Accurate Transformers Ltd. (Code: 530513) (Rs.86.50) is engaged in manufacturing of power and distribution transformers ranging from 1 MVA to 160 MVA - in up to 220 KV class. It also carries out rural electrification project, which involve electrification in remote areas including the laying of lines, poles and substations.

Unfortunately, despite having installed capacity of more than 8000 MVA, the company is working at very low capacity utilization of less than 50% due to mounting debtors and shortage of funds. However, on the back of the ongoing boom in the power sector and the robust demand for transformers, the situation has improved considerably. Due to better operating efficiency and higher realization, the company is expected to improve its profit margin going forward. It may even grow at CAGR of 50% over the next three years as far as its bottomline is concerned. On a conservative basis, it can clock a turnover of more than Rs.200 cr. with PAT of Rs.8 cr. for FY08. This works out to an EPS of Rs.27 on its current equity of Rs.2.96 cr. As per unconfirmed reports, SEBI has stalled its preferential issue of 31 lakh warrants at Rs.56 and it may have to go in for fresh fund raising programme as per SEBI guidelines. The scrip has reduced to nearly one third from its high of Rs.240. A screaming buy.

Spanco Telesystems & Solutions Ltd. (Code: 508976) (Rs.165) offers core competency telecom systems integration, which includes implementation of multi-location, multi-services converged networks for carrying diverse multimedia traffic (voice, data & video) based on latest technologies like ATM, MPLS, Frame Relay, TCP/IP etc. On the other hand, it has bagged a 10-year contract to set up, operate and maintain Interactive Voice Response System (IVRS) and Regional Call Centres (RCC) for the Indian Railways in a joint venture with
the Spice Group. Moreover, it has ventured into the RFID space by acquiring 51% stake in Skandsoft Technologies - a pioneering software solutions company, which is dedicated to revolutionize the upcoming
world of automated business processes through technologies like Radio Frequency Identification (RFID) & Automatic Identification and Data Capture systems (AIDC). It has even formed a joint venture `Spanco-
GKS' with Golden Key Solutions of Oman to replicate its Indian business in the Gulf region as well. For FY08, it may clock a turnover of Rs.625 cr. with profit of around Rs.48 cr. on a standalone basis i.e. an EPS of Rs.23 on its current equity of Rs.20.65 cr. A solid bet.

ANG Auto Ltd. (Code: 530721) (Rs.94.45) is among the few companies in the world to be completely integrated – from the manufacture of components to sub-assemblies and assemblies and finally to vehicles.
Today, it is the largest trailer manufacturing company in India with a capacity of 3600 trailers per year and will soon be No. 1 in Asia as it is augmenting the capacity to 6000 trailers. Notably, the company has entered into a 5-year contract with Ashok Leyland for trailers, which is valued at Rs.1500-1800 cr. Secondly, its patented
automatic stack adjuster and the single piece dummy axle is witnessing strong demand from all over the world. Going ahead, it intends to manufacture suspension systems and is also setting up a forging unit at Bhiwadi, Rajasthan, at capex of Rs.37 cr. To consolidate its operations, the company has merged ANG Auto Tech, its
75% subsidiary with itself. On a standalone basis, it is expected to clock a turnover of Rs.120 cr. and profit of Rs.16 cr. for FY08 i.e. an EPS of Rs.13.50 on its current equity of Rs.11.90 cr. Since the conversion price is high at Rs.325, its FCCB of Rs.50 cr. may not get converted into equity. Moreover, finding its
valuation very cheap, the management has obtained the approval to buy back equity shares up to 24.30% of the total paid-up equity capital at a maximum price of Rs.215 per share. A golden opportunity to buy at such low price levels.

Part of the B. M. Thapar Group, Greaves Cotton Ltd. (Code: 501455) (Rs.192.50) is engaged in the production of diesel/petrol/LPG engines for power generation, agro equipment and automotives apart from manufacturing gensets, agro equipment and construction equipment Besides, it is also engaged in marketing high technology systems for marine, aviation and electronic applications. Last year, to enhance its presence in the global market, it acquired Bukh Farymann Diesel GmbH (renamed as Greaves Farymann Diesel GmbH), which is engaged in the manufacture and marketing of single cylinder diesel engines and parts for Rs.25 cr. For FY08, it may clock a turnover of Rs.1400 cr. with PAT of Rs.115 cr. i.e. an EPS of Rs.24 on its current equity of Rs.48.80 cr. More importantly, few weeks back Piaggio Group's Indian subsidiary signed an 8 year agreement with the company for purchase of mono-cylinder diesel engines for application on the three-wheeled vehicles manufactured by it. This implies that the company will continue to be a single source supplier of such mono-cylinder diesel engines to Piaggio. A solid bet for long-term.

Courtesy : Money Times

Sreenath Raghav

Investing tips : Lakshmi Electrical Control / Patel Airtemp / Nava Bharat Ventures etc

Sreenath Raghav


Invetsing tips here..............

Lakshmi Electrical Control (Rs.263.95) manufactures contactors,
thermal overload relays, control relays, electrical control panels
and industrial plastic components.

Its Fy07 EPS was Rs.31 while FY08 EPS is likely to be around
Rs.40/42 level.

The stock has reacted from a high of Rs.589 to CMP of Rs.263. The
market cap is just Rs.66 cr.

Risk factor is the rising raw material and manpower costs along
with a slowdown in industry, which will affect margins.

Investors can benefit from this reac
tion and accumulate this stock on dips for good long-term growth.
* Patel Airtemp (Rs.46.80) is engaged in the manufacture and sale
of extensive range of Heat Exchangers such as Shell & Tube type,
Finned tube type and Air cooled Heat Exchangers, Pressure Vessels,
Air-conditioning and Refrigeration equipments and Turnkey HVAC
Projects in India and exports. The company has technical
collaboration with M/s. TEK FINS Inc. USA for design and manufacture
of Air cooled Heat Exchangers. All these products are supplied to
leading industrial sectors like Power Projects, Refineries,
Fertilizers, Cement Plants, Petrochemicals, Pharmaceuticals, Textiles
and Chemical Industries.

The order position of the company is good and it is performing well
in the current year. If its first 9 months working is any indication
company, it should report an EPS of around Rs.9 in the current year.
The stock has reacted from high of Rs.145 to the current level
where its market cap is just Rs.25 cr. Accumulate at current levels
or at dips.

* Nava Bharat Ventures (Rs.193.55) is into sugar, ferro alloys and
power generation. It is said to be doing well. The stock has reacted
from a high of Rs.352 to the current level. Investors can keep a
watch to add this stock on reactions.

* PAE Ltd. (Rs.19.25) is in the automotive and non-automotive
(industrial) segments of batteries and components/systems The power
segment presents its new growth opportunities as PAE has launched
power back-up devices and systems and sees excellent growth potential
for them. It is a profit making and dividend paying company. In the
current year expected EPS is around Rs.5/6. Last dividend was around
10%, which is likely to rise to 12% in the current year. At present,
market cap is just Rs.19 cr. The stock has reacted from a high of
Rs.54 to the current level of Rs.19 where it looks very attractive
for investment.

* Torrent Cables (Rs.180) - Those who booked profits at higher
levels can add this stock at the current level of Rs.180 or on dips.
Full year expected EPS is Rs.38/40.

*ABG Shipyard (Rs.595) is another fundamentally strong stock, which
investors can add on reaction.

* Sesa Goa (Rs.3160.95) - Firm iron ore price may give a good push
to this stock.

* Investors should take advantage of this free fall of mid-caps and
accumulate fundamentally strong stocks with good dividend yield like
PNB Gilts, First Leasing, Tata Metalik, Central Bank, Andhra Bank,
Oriental Hotels, Supreme Industries to name a few.

Courtesy : Money Times

Sreenath Raghav

Stock Watch : Jindal Photo Ltd. / Amtek Auto Ltd. / Lokesh Machines Ltd etc

Sreenath Raghav


Some stock tips here............

Jindal Photo Ltd. (JPL) (Code: 532624) (Rs.126) is attracting the
interest of investors. The buzz is that JPL is in the process of
setting up a 1000 MW power plant in Orissa for which it has already
been allotted coal mines. The management is meeting on 27th March
2008 to invest Rs.300 cr. in the equity of Jindal India Powertech, a
company formed to execute the power project. The power plant is
expected to come up by 2012.

Amtek Auto Ltd. (AAL) (Code: 520077) (Rs.241.65) is an integrated
automotive component manufacturer of forgings, engine, transmission
and suspension parts, assemblies and sub-assemblies. It supplies over
300 components and assemblies to leading OEMs in India and abroad.
Its subsidiaries are: Ahmednagar Forgings – Pune; Amtek Ring Gears
Inc., Amtek Crank Shaft India, Amtek Investments, GWK, Lloyds Brierly
Hill and Triplex – UK; and Smith Jones Inc., Midwest Manufacturing,
Amtek Gears and Amtek Investments - US. It earns 60% of its revenues
from clients in the four-wheeler segment and the balance from the two-
wheeler and commercial vehicle segments.

Lokesh Machines Ltd. (LML) (Code: 532740) (Rs.55.40) is recommended
for steady appreciation in the medium-to-long-term.
Founded in 1984, Hyderabad-based LML has three divisions — special
purpose machines (SPM), computerised numerically controlled (CNC)
machines and auto components. While SPMs are targeted at big
automobile companies, CNC machines are aimed at auto ancillaries. Its
auto component division is an OEM supplier to Mahindra & Mahindra and
Ashok Leyland.

Tera Software
BSE Code: 590020
Last Close: Rs.44.70
As per informed sources, the company has bagged some big lucrative
government contracts/orders. With an expected EPS of Rs.12-13 in the
current year and Rs.18 in 2008-09, the scrip has potential to go up
by 100% within a year. The company has surplus land in Hyderabad, the
market value which works out to Rs.38-40 per share. The company may
develop an IT Park on this land and is not at all affected by the
strong rupee as it has nil presence in the export market. The company
is paying attractive dividend of 20%. Buy with stop loss of Rs.34 to
get good return in the medium-to-long-term. P/E is only 4.

Confidence Petroleum (India) Ltd. (CPIL), the flagship company of
the Rs.400 cr. Confidence Group involved in LPG Cylinder
manufacturing, LPG Bottling, LPG Marketing, LPG Blending, Auto LPG
Cylinder Manufacturing & Auto LPG Dispensing for more than a decade.
It also provides logistical support to PSU oil majors at the national
level and has entered into a joint venture with Energetek Inc., world
leaders in NG & Adsorbed Natural Gas (ANG) Technology to provide
clean and affordable pipeless Natural Gas supply to Automotive and
Industrial Consumers. Energetek Inc. is a U.S. based company with
subsidiaries in the U.S., India, Ukraine and Israel.
ANG technology provides cost-effective storage of Natural Gas by

Courtesy : Money Times

Sreenath Raghav

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