For private circulation only

BgSE FINANCIALS LIMITED

Volume No. I Issue No. 15 13 January 2007

Dramatic bounce back for the market

There was some dramatic action in the market this week. While the market saw significant
DATE PURCHASES SALES NET
falls on three consecutive days starting Monday, it bounced back with a vengeance on
(RS CR) (RS CR) (RS CR)
Thursday by posting robust gains of 268 points. There were some fears of we heading
FII (Equity) for a serious correction when the Sensex lost round about 500 points from last Friday’s
Week Ended (10/01) 5877 10428 -4551 close till Wednesday’s close. In the light of these developments, the 268 points gain on
This Month (Jan.10) 18127 19046 -919 Thursday came as a breather. Friday’s gains were all the more euphoric. The Sensex and
the Nifty both touched their all time highs on the day gaining 425.82 points and 110.20
Jan ’99 to Till Date 1122892 962558 158565
points respectively at closing. The Sensex closed Friday at 14056.53, up 196.01 points
over last Friday’s closing. The Nifty closed at 4052.45, up 69.05 points over the week.
MF (Equity) On Monday, January 8, the Sensex corrected 208.37 points to settle at 13652.15. There
Week Ended (11/01) 2253 3140 -887 was correction across all Asian indices on the day and our bourses were not spared
This Month (Jan.11) 4409 5117 -707 either. The fall in the BSE Mid-mid cap index was comparatively less severe at 0.4% as
against Sensex’s 1.5%. We had the BSE Small-Cap index actually rising on the day by
Feb ’00 to Till Date 313173 290198 22975
0.8%. This can be seen symbolic of the action moving from large cap stocks to small
caps and mid caps, something that market men have been anticipating for a while. IT,
telecom and auto shares came down sharply on Monday.
The correction phase extended to Tuesday as well with the Sensex losing a further 85.82
points to close at 13652.15. The IT sector again played a role in the fall. With the rupee
INDEX SUMMARY appreciating, there were concerns about companies in the sector being able to maintain
their profitability levels. Many felt that it was purely a technical correction and expected the
12-JAN-07 05-JAN-07 VAR(%)
markets to pull back on Wednesday after two days of sluggishness. But they were proved
SENSEX 14056.53 13860.52 1.4 wrong, as there was a further decline of 204.17 points or 1.5% in Sensex on Wednesday.
There have been reports about hedge funds selling Asian equities to offset the losses
NIFTY 4052.45 3983.40 1.7 incurred by them on account of a sharp 9% fall in oil price since the beginning of 2007. On
BSE TECH 3693.39 3674.79 0.5 the day, Nifty’s strong resistance at 3900 was broken and the closing was well below that
level at 3850.30, down 1.5% over the previous day’s close.
BSE - 100 7109.88 7023.33 1.2 The correction sentiment reversed finally on Thursday when the Sensex gained 268
points. The gains were based on short covering of positions and market men opined that
BSE -200 1682.09 1663.44 1.1
one could not infer the bull run having resumed on the basis of Thursday’s gains. But
BSE -500 5371.94 5311.68 1.1 come Friday, and the Sensex sky rocketed to close above the psychological mark of
14000 while Nifty too crossed its psychological 4000 mark. And this time the gains were
DOLLEX - 30 2606.82 2570.47 1.4
not defensive. They came on a build up of fresh new long positions.
DOLLEX - 200 632.59 625.58 1.1 On Friday, the BSE Small Cap index closed at 7278.33, posting a gain of 180.15 points
over last Friday’s closing. The BSE Mid Cap index closed Friday at 5974.64 points gaining
BSE - PSU 6215.08 6144.40 1.2 38 points over the week.
BSE AUTO 5637.76 5595.45 0.8 Among individual stocks, Infosys was in the news for its quarterly results. The results
were as per market expectation but over the week, the stock has been a loser by Rs.52.45.
BSE BANKEX 7383.25 7154.27 3.2 The stock closed Friday at Rs.2222.35. Index heavy weight Reliance Industries gained
4% over the week to close at 1340.10. Its Q3 results are to be announced on January 18.
BSE CAP. GOODS 9128.19 9166.82 -0.4
Reliance Communications was down Rs.13.40 over the week. It closed Friday at
BSE CONS DURA 3802.97 3687.66 3.1 Rs.433.75. On Wednesday, the company’s board approved a foreign currency convertible
bonds (FCCBs) of up to $1 billion in one or more tranches.
BSE FMCG 1927.47 1874.77 2.8
ICICI Bank’s dollar-denominated, three-tranche debt offering reportedly received strong
BSE HEALTHCARE 3871.56 3849.65 0.6 response. The transaction, expected to raise at least $300 million, has attracted orders
worth over $2 billion. The stock rose by Rs.59.70 over the week to close at Rs 970.10.
BSE IT 5348.10 5343.71 0.1 HDFC Bank came out with its third quarter results on Thursday. It has reported 31.7%
BSE METAL 9029.89 8979.85 0.6 growth in net profit for Q3 December 2006 at Rs 295.64 crore. The net profit was within
market expectations. Net interest income has risen a 38.4% to Rs 928.63 crore (Rs
BSE OIL & GAS 6559.27 6338.55 3.5 670.61 crore), beating market expectations. The stock closed flat at 1.63.25, just 0.87%
above its previous week’s close.

A weekly publication of BgSEL

BgSE FINANCIALS LIMITED
Market FForcast
orcast

Buying may continue

The market is expected to gain further, as buying is likely to continue in the forthcoming week. So far, results
have been as per market expectations.
Also the strong data of India’s industrial production (IIP), which rose 14.4% in November compared to the
same month a year ago, suggests that the slowdown seen in October was temporary, and will help to dispel
misgivings. Industrial growth in the first eight months of the current fiscal year, which ends in March 2007,
rose to 10.6% from 8.3% in the same period a year earlier, the commerce and industry ministry said in a
statement.
A month ago, the government reported 6.2% growth in October, stoking fears that the economy can be
slowing.
Crude oil prices have also cooled sharply, with the US crude futures declining below $52, hitting a fresh 19-
month low as selling by funds intensified.
TCS, HCL Technologies, Bajaj Auto, Wipro, Reliance Industries, Ranbaxy and Satyam Computer are the major
Q3 results scheduled next week.
Aban Offshore, Reliance Industrial Infrastructure, CMC, Anant Raj Industries, Aztec Software, Jammu & Kashmir
Bank, Container Corporation of India, Geometric Software Solutions, Rajesh Exports, Tulip IT Services, Triveni
Engineering & Industries, Patel Engineering, HT Media, New Delhi Television, NIIT Technologies, Infotech
Enterprises, Lupin, 3i Infotech, Canara Bank, Reliance Energy, Liberty Shoes, Siemens, Ultratech Cement, Tech
Mahindra, JET Airways (India), Hindustan Construction Company and Dabur India, will also be announcing
their December quarter results in the coming week.

Issue Highlight
COMPANY ISSUE SIZE(RS. CR) ISSUE OPENS ISSUE CLOSES OFFER PRICE
Autoline Industries Ltd NA 08-Jan-06 12-Jan-07 220-225

TOP GAINERS - Weekly TOP LOSERS - Weekly

12-JAN-07 05-JAN-07 VARI(%) 12-JAN-07 05-JAN-07 VARI(%)
SYNGENTA (I) 421.45 331.90 27.0 CORPN.BANK 314.65 348.35 -9.7
FEDERAL BANK 255.05 220.40 15.7 MASTEK LTD 359.55 390.55 -7.9
ISPAT INDS. 12.85 11.30 13.7 PARSVNATH 419.80 447.15 -6.1
IDBI LTD. 86.15 76.95 12.0 RAMCO SYSTM 208.35 220.90 -5.7
POLARIS SOFT 214.40 192.45 11.4 HINDUJA FI 712.40 750.35 -5.1
MAHA.TELE 164.25 148.70 10.5 CHENNAI PET. 207.80 218.15 -4.7
RASHTR.CHEM. 41.70 38.00 9.7 BOM DYEING 736.80 773.00 -4.7
INGERSOLL 396.10 371.25 6.7 ING VYSYA BN 151.75 158.30 -4.1
JETAIRWAYS 680.85 638.35 6.7 ADANI ENTER 225.30 235.00 -4.1
ICICI BANK 970.10 910.40 6.6 BASF INDIA 232.05 241.45 -3.9
BH.EARTH MOV 1163.40 1093.05 6.4 CANARA BANK 272.20 283.05 -3.8
NESTLE (I) 1245.00 1170.60 6.4 SUZLONENERGY 1243.05 1291.30 -3.7
GEOMET SOFSO 135.30 127.35 6.2 ASIAN PAINTS 720.20 748.10 -3.7
THERMAX 408.40 384.80 6.1 LANCO INFRA 243.45 252.60 -3.6
UTI BANK 499.20 471.50 5.9 AVENTIS PH. 1424.00 1476.70 -3.6
INFRA DEVFIN 83.20 78.75 5.7 BALAJI TELE. 133.40 138.15 -3.4
GUJ.MINERAL 401.60 380.55 5.5 FINOLEX IND. 85.25 88.15 -3.3
ICI INDIA 459.00 435.80 5.3 CADILA HEALT 346.85 358.45 -3.2
STERL.BIOTEC 199.90 190.10 5.2 ADI BIR NUVO 1246.65 1286.80 -3.1
MICRO INKS L 361.20 343.55 5.1 PUNJAB TRACT 243.45 251.20 -3.1

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 BgSE FINANCIALS LIMITED
Derivatives
DERIVATIVE STOCKS
COMPANY PRICE LAT. P/E DIV. 52 WK 52 WK MKT COMPANY PRICE LAT. P/E DIV. 52 WK 52 WK MKT
(12 JAN 07) RATIO YLD(%) HIGH LOW LOT (12 JAN 07) RATIO YLD(%) HIGH LOW LOT
BANKNIFTY 6164 17 1 6596 3409 100 J&KBANK 669 10 2 690 300 600
CNXIT 5601 35 1 5630 3193 50 JETAIRWAYS 683 40 1 1205 475 400
NIFTY 4059 22 1 4047 2596 100 JINDALSTEL 2174 8 1 2310 1153 250
ABAN 1747 54 0 1798 555 200 JPASSOCIAT 730 28 1 748 279 300
ABB 3648 45 0 3943 1900 100 JPHYDRO 33 21 0 40 22 12500
ACC 1070 26 1 1195 453 375 JSTAINLESS 121 9 2 138 63 4000
ALBK 93 5 5 99 52 4900 JSWSTEEL 419 7 3 416 184 550
ALOKTEXT 69 9 2 99 51 6700 KOTAKBANK 422 84 0 428 210 550
AMTEKAUTO 352 25 0 380 243 600 KTKBANK 150 8 3 162 75 2500
ANDHRABANK 90 8 4 105 55 4600 LICHSGFIN 162 7 4 233 136 1700
ARVINDMILL 54 16 2 114 46 4300 LT 1482 39 1 1504 851 200
ASHOKLEY 47 17 3 53 29 9550 LUPIN 593 20 1 655 386 350
AUROPHARMA 733 33 0 752 467 350 M&M 937 21 2 972 457 625
BAJAJAUTO 2793 24 1 3325 1974 100 MAHSEAMLES 503 13 1 498 233 1200
BAJAJHIND 209 22 0 570 190 950 MARUTI 927 20 0 991 637 400
BALRAMCHIN 84 11 2 203 76 2400 MATRIXLABS 223 31 0 313 184 1250
BANKBARODA 242 12 2 303 176 1400 MCDOWELL-N 822 54 0 915 363 250
BANKINDIA 207 10 2 214 80 3800 MPHASIS 298 49 2 320 123 1600
BEL 1316 15 1 1476 811 275 MRPL 42 20 2 64 30 8900
BHARATFORG 376 36 1 488 221 1000 MTNL 165 17 3 229 123 1600
BHARTIARTL 664 37 0 680 307 1000 NAGARCONST 226 26 1 237 95 1000
BHEL 2267 31 1 2666 1425 150 NAGARFERT 17 9 0 20 10 28000
BILT 113 10 2 150 83 2400 NATIONALUM 211 7 2 338 180 1150
BOMDYEING 743 44 1 986 351 300 NDTV 309 0 0 311 128 2200
BONGAIREFN 50 6 5 80 40 4500 NEYVELILIG 58 21 3 100 44 5900
BPCL 363 0 3 505 291 1100 NICOLASPIR 259 27 1 288 148 2090
CANBK 273 8 3 318 152 1600 NTPC 139 18 2 158 85 3250
CENTURYTEX 762 43 1 759 258 850 ONGC 926 11 4 1009 613 450
CESC 317 13 1 370 192 1100 ORCHIDCHEM 201 16 1 400 142 1050
CHAMBLFERT 39 8 5 47 27 6900 ORIENTBANK 226 7 2 280 139 1200
CIPLA 255 30 1 304 170 1250 PARSVNATH 422 0 0 576 389 700
COLGATE 387 34 2 476 270 525 PATNI 416 45 1 510 250 650
CORPBANK 317 11 2 445 206 1200 PNB 517 9 1 582 300 1200
CROMPGREAV 219 32 1 234 94 1000 POLARIS 216 49 1 215 52 2800
CUMMINSIND 276 23 2 294 141 1900 PRAJIND 243 51 1 241 97 1100
DABUR 152 39 2 174 102 1800 PUNJLLOYD 1059 110 0 1254 540 300
DIVISLAB 3018 32 0 3180 1110 250 RANBAXY 423 82 2 530 317 800
DRREDDY 811 46 1 889 493 400 REL 529 15 1 670 360 550
ESCORTS 112 3 0 136 53 4800 RELCAPITAL 652 20 1 671 320 550
ESSAROIL 58 0 0 80 31 5650 RELIANCE 1343 17 1 1316 580 300
FEDERALBNK 255 8 2 241 134 1300 RENUKA 457 26 0 1665 378 500
GAIL 277 9 4 326 205 1500 SAIL 90 7 3 96 50 2700
GDL 202 20 2 281 137 1000 SATYAMCOMP 496 24 1 525 281 600
GESHIP 224 9 3 353 171 600 SBIN 1229 13 1 1617 685 500
GLAXO 1173 31 2 1554 882 300 SCI 169 5 5 177 119 1600
GMRINFRA 360 313 0 405 200 1000 SESAGOA 1714 7 2 1757 809 150
GNFC 108 5 4 145 79 2950 SIEMENS 1122 54 0 1407 712 375
GRASIM 2828 24 1 2855 1390 175 SRF 204 9 1 373 137 1500
GTL 151 19 1 181 101 1500 STAR 365 27 1 439 210 850
GUJALKALI 155 8 1 255 124 1400 STER 543 35 0 612 229 875
GUJAMBCEM 142 20 2 152 70 2062 SUNPHARMA 1025 35 1 1064 635 450
HCC 162 29 1 208 83 1400 SUNTV 1535 206 7 1620 820 250
HCLTECH 625 28 3 725 358 650 SUZLON 1252 36 0 1511 756 200
HDFC 1590 26 1 1737 962 300 SYNDIBANK 76 7 3 105 47 7600
HDFCBANK 1063 30 1 1150 615 400 TATACHEM 220 14 3 280 187 1350
HEROHONDA 747 15 3 940 635 400 TATAMOTORS 947 20 2 998 608 412
HINDLEVER 220 39 2 296 180 1000 TATAPOWER 573 17 2 622 390 800
HINDPETRO 305 32 1 367 198 1300 TATASTEEL 471 8 3 745 344 675
HTMT 719 88 1 866 315 300 TATATEA 731 24 2 1078 555 275
I-FLEX 2027 41 0 2090 832 300 TCS 1326 35 1 1298 726 250
ICICIBANK 969 22 1 925 435 700 TITAN 903 37 0 914 450 411
IDBI 87 9 2 106 48 4800 TRIVENI 55 12 1 131 49 3850
IDFC 84 18 2 84 43 5900 TTML 22 0 0 28 15 10450
IFCI 22 0 0 21 8 31500 TVSMOTOR 83 24 1 187 78 2950
INDHOTEL 157 38 1 164 84 1750 ULTRACEMCO 1083 28 0 1153 450 200
INDIACEM 238 33 0 249 103 1450 UNIONBANK 123 11 3 141 81 4200
INDUSINDBK 56 302 0 64 27 7700 UTIBANK 501 19 1 515 220 900
INFOSYSTCH 2228 37 2 2325 1225 200 VIJAYABANK 50 13 2 68 32 6900
IOB 116 7 2 128 65 2950 VOLTAS 111 40 1 120 62 1800
IOC 486 17 2 622 309 600 VSNL 439 24 1 516 300 525
IPCL 287 8 1 322 188 1100 WIPRO 627 33 1 670 381 600
ITC 172 30 1 213 136 1125 WOCKPHARMA 356 19 1 562 316 600
IVRCLINFRA 396 27 0 463 154 1000 ZEETELE 277 232 0 381 151 700

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 BgSE FINANCIALS LIMITED
Dividend Yield
Dividend yield
COMPANY BSE BSE EQUITY PRICE (Rs) 52 WEEK TTM DIVIDEND (%) AVG DIV Y
CODE GROUP (Rs cr) (12 JAN 07) HIGH LOW PE 2006 2005 2004 DIVI.(%) (%)
Tube Investments 504973 B1 37 68 132 63 8 235 70 100 135 7
Varun Ship. Co. 500465 B1 142 68 99 60 7 45 30 16 30 7
Chennai Petroleu 500110 A 149 208 274 143 8 120 120 50 97 6
Bongaigaon Ref. 500072 A 200 50 79 40 5 27 120 77 75 5
Ship. Corp. (I) 523598 A 282 168 177 118 4 85 70 170 108 5
GE Shipping Co 500620 A 152 222 353 171 5 112 90 65 89 5
Chambal Fert. 500085 A 416 39 47 27 9 18 18 16 17 5
Allahabad Bank 532480 A 447 92 99 53 6 40 30 20 30 4
GNFC 500670 A 146 108 145 79 6 43 38 30 37 4
Andhra Bank 532418 A 485 89 105 57 8 35 30 28 31 4
LIC Housing Fin 500253 A 85 160 234 136 6 60 50 50 53 4
Mercator Lines 526235 S 19 51 62 28 6 180 200 50 143 4
Syndicate Bank 532276 A 522 76 104 47 6 25 20 20 22 3
T N Newsprint 531426 A 69 93 138 80 7 30 28 28 28 3
Dewan Housing 511072 B1 50 77 102 51 9 25 20 25 23 3
Electrost.Cast. 500128 B1 21 397 470 290 9 125 125 100 117 3
SREI Infra. Fin. 523756 B1 109 53 75 31 10 17 15 15 16 3
Tata Invest.Corp 501301 B1 34 389 500 282 8 120 120 101 114 3
Union Bank (I) 532477 A 505 122 142 81 8 35 35 35 35 3
Tata Steel 500470 A 580 467 679 341 7 130 130 100 120 3
Ballarpur Inds. 500102 A 167 112 147 84 9 28 25 25 26 2
Canara Bank 532483 A 410 272 320 165 8 66 55 50 57 2
Natl. Aluminium 532234 A 644 211 335 185 6 50 40 40 43 2
City Union Bank 532210 B1 24 169 205 84 6 40 40 70 50 2
Indian Overseas 532388 A 545 115 129 66 7 26 24 20 23 2
India Glycols 500201 B1 28 133 208 100 7 30 30 25 28 2
Corporation Bank 532179 A 143 315 445 205 9 70 65 60 65 2
Monnet Ispat 513446 B1 34 205 332 143 7 45 60 25 43 2
Karnataka Bank 532652 B1 121 149 162 74 9 30 20 40 30 2
Oriental Bank 500315 A 251 226 280 139 6 45 30 50 42 2
Guj. Inds. Power 517300 A 151 63 83 45 7 13 13 10 12 2
Graphite India 509488 B1 29 62 68 38 9 60 45 40 48 2
IPCL 500105 A 301 285 325 185 8 55 45 25 42 2
Alok Inds. 521070 A 170 68 99 54 9 12 12 10 11 2
Pun. Natl. Bank 532461 A 315 516 585 300 9 90 60 40 63 2
Alembic 506235 B1 28 64 86 49 10 50 30 20 33 2
Tele Data Infor. 532358 B1 172 33 35 9 3 5 15 6 9 2
SRF 503806 B1 65 202 373 136 5 30 25 25 27 1
Vardhman Textile 502986 B1 58 277 420 250 8 40 45 45 43 1
Federal Bank 500469 A 86 255 258 137 9 35 25 70 43 1
Jindal Stainless 532508 A 26 120 138 63 8 80 120 100 100 1
Guj. Alkalies 530001 B1 73 153 244 123 7 20 15 8 14 1
Hindalco Inds. 500440 A 116 171 251 139 9 220 200 165 195 1
HPCL 500104 A 339 304 361 206 7 30 150 220 133 1
Bannari Amman 500041 B1 10 807 1723 760 8 70 45 36 50 1
Bhushan Steel 500055 B1 42 402 405 140 7 25 25 10 20 1
Bank of Rajasth. 500019 B1 108 42 60 25 6 3 11 20 11 1
Note: Companies of BSE 500 having dividend yield >= 1 TTM: Trailing 12 months
Formula : Equity Div. (%) x Face Value / Latest Close price

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 BgSE FINANCIALS LIMITED

Savita Chemicals: Strong growth to sustain Rs 530

In FY 2006, out of the production of around 168000 kilo overseas plants in Nepal, Dubai), Marico, Emami, Bajaj, etc.
liters of oil, transformer oil constituted nearly 72000 kilolitres It also has the distinction of being the only Asian company
of production, white oil constituted nearly 60000 kilo liters approved as supplier for HLL’s Asia-Pacific operations.
and the rest is lubricating oil, used in automobile industry
Automotive sector and industrial units constitute the major
The development, growth and expansion of the power markets for the company’s lubricant products. Due to
generation and transmission infrastructure in the country sustained economic growth, automobile and other
determine the demand for the company’s Transformer Oils industries are also doing well.
business.
In case of lubricating oils, Savita Chemicals supplies major
Since the enactment of the Electricity Act in 2003, there is a requirements to OEMs like Toyota and Honda Siel and Honda
rapid growth in the power sector. Over the next 5 to 7 years Motors. M&M, Tata Motors, Hero Honda and Hitachi are its
substantial investment in this sector is expected. As Savita other clients. Toyota has announced expansion plans and
Chemicals enjoys a dominant position in the transformer oil even setting up another plant, which would directly benefit
business, it is expected to be a direct beneficiary of this Savita Chemicals.
huge growth.
For the quarter ended September 2006, Savita Chemicals
Savita Chemicals’ position is so dominating in this business registered a whopping 54% rise in its net revenues to Rs
that it supplies to all OEMs. It has been satisfying almost 214.67 crore. PAT rocketed 64% to Rs 13.40 crore.
major domestic requirements of Crompton Greaves for last
three years and nearly 100% requirement for exports. Savita For the six-months ended September 2006, Savita Chemicals
Chemicals meets nearly half of the requirement of ABB and it registered 49% rise in its net revenues to Rs 389.76 crore.
also supplies to Areva’s domestic requirement. Six-month PAT jumped 43% to Rs 22.01 crore.
Siemens is setting up a new transformer plant and this would Savita Chemicals increased its transformer oil and white oil
benefit Savita Chemicals immensely since Siemens plant is capacities from 186,000 kilo liter to about 216,000 kilo in
logistically very close to Savita Chemicals’ plant at Navi FY 2006. During FY 2007, the management aims to fully
Mumbai. utilize the installed capacity of 216000 kilolitres.
The prospects for Liquid Paraffin and White Oils are mainly The company has also lined up for a Greenfield expansion
decided by the market for cosmetics, pharmaceuticals and plan for transformer oil and white oil. A capex of Rs 22-25
personal care products. The major user of white oils are crore is planned for FY 2007 and the Greenfield expansion
cosmetic, baby oil and hair oil industries. Since the issues will have an additional capex of Rs 35-40 crore.
are related to skin, FMCG companies prefer to buy from With the commissioning of two Nos. of 950 KW and two
reputed companies like Savita Chemicals. Nos. of 1,250 KW Wind Energy Generators during FY 2006,
In white oils business, Savita Chemicals is supplier to all the Company’s Wind Power Plants situated in Maharashtra,
major companies like HLL, Dabur (for domestic as well as Karnataka and Tamil Nadu generated a total of 23,219,110
units against 18,685,198 units in the previous year. With
the commissioning of these four Wind Energy Generators,
Savita Chemicals: Financials the installed capacity of your Company stands at 16 MW in
0303 (12) 0403 (12) 0503 (12) 0603 (12) 0703 (12P) this sector. Further new wind generator turbines are lined
Sales 283.10 399.29 486.80 604.91 835.01 up for the current year and the management hopes that the
OPM (%) 8.8 8.1 8.7 8.6 8.1 overall capacity of power generation reaches to 20 MW.
OP 24.91 32.47 42.52 52.01 67.66 Due to fall in oil prices and new capacities getting
Other Inc. 5.02 10.57 6.57 9.39 11.50 commissioned in base oils, the company’s raw material
prices are likely to come down in future. While in the
PBIDT 29.93 43.04 49.09 61.40 79.16
transformer oil business, rise and fall is normally passed
Interest 1.37 0.84 0.57 0.92 1.93
on, in FMCG and other industries, fall in raw material prices
PBDT 28.56 42.2 48.52 60.48 77.23 will help improve margins.
Dep. 4.41 5.78 6.97 9.04 10.38 The company’s financials have grown impressively over
PBT 24.15 36.42 41.55 11.08 66.85 the years. We expect the company to register sales and
Tax 4.26 8.25 12.02 2.87 17.38 net profit of Rs 835.01 crore and Rs 49.47 crore in FY
PAT 19.89 28.17 29.53 37.49 49.47 2007. On equity of Rs 8.76 crore and face value of Rs 10
EPS* (Rs) 22.7 32.2 33.7 42.8 56.5 per share, EPS works out to Rs 56.5. The share price trades
* Annualised on current equity of Rs 8.76 crore. Face Value: Rs 10. (P): at Rs 530. P/E works out to just 9.4. The shares are
Projections. Figures in Rs crore available cum 2:3 bonus and the record date is fixed at
Source: Capitaline Corporate Database 18th January 2007. „

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 BgSE FINANCIALS LIMITED
Stock Result

Sintex Industries: On the verge of acquisition

Sintex Industries, a plastic tanks and textiles manufacturer, crore as against Rs 96 crore during nine months ended
reported its third quarter results with a 31% rise in its net December 2005. The other income increased by 36% to Rs
sales in the quarter ended December 2006 results. The OPM 18.72 crore. As a result the PAT increased by 50% to Rs 76.9
however declined by 110 basis points primarily due to non- crore as against Rs 51.27 crore during December 2005.
booking of revenues and profits of Rs 80 crore order in custom
molding division. The Profit after Tax increased by 24% to Rs The company has not booked the revenues worth Rs 80
25.45 crore in plastic electrical accessories business, which has
Sintex Industries has two divisions — textiles and plastics. The an EBIDATA margin of 16% at the current capacity. Going
textile division manufactures poplin, coats, polyester shirtings, forward, with optimum capacity, the company intends to
sarees, dhoties, corduroy cloth and other fashion fabrics. operate at EBIDATA level of 20%.
The company’s plastic division leverages the presence of The much awaited 16MW gas based power plant will be
one of the largest integrated plastic processing capacities in operational from 15th Jan’07, which will save cost to the
India and a globally competitive position with its leadership tune of Rs 1 crore every month. The capex incurred stood at
position in Water Tanks, Pre-fabricated Structures, Interior Rs 45 crore.
products and industrial products. Its plastic products are
The company expected the prices of raw material to come
well known by the Sintex brand. Water storage tanks, loft
down with the fall in crude prices. Unfortunately the demand
tanks, industrial containers and material handling containers
has not lead this to happen. Going forward, the company
are some of the products manufactured in this division.
expects to operate at EBIDATA level of atleast 18-18.5%.
The textile segment forms 30% of the total revenue. The net
sales of this division rose by 16% to Rs 83.56 while the PBIT The textile division expansion is going according to the plan.
rose by 37% to Rs 16.71 crore. The present capacity stands at 21 mm and will be expanded
to 24 mm by Mar’08 end. The company expects to spend Rs
The plastics segment of the Sintex industries generates the
33 crore for its shirting business. The phase 1 of this business
maximum revenue at Rs 191 crore forming around 70% of
will be of men shirting and the phase 2 will include casuals
the total revenue. During quarter ended December 2006 the
for female as well. The shirting capacity will be operational
net sales in this segment rose by 34%, while PBIT increased
in FY’09.
by 23% to Rs 27.58 crore
For nine months ended December 2006 the sales rose by 41 The company is doing due diligence for its inorganic growth
% to Rs 752.88 crore from Rs 535.38 crore corresponding target in custom molding business and will soon announce
previous quarter. The operating margins increased by 70 bps the acquisitions. Overall the company expects to growth at
to 18.7%. The operating profit increased by 46% to Rs 140 least by 30-35% with EBIDATA at 18-18.5%. „

Sintex Industries Results

PARTICULARS 0612 (3) 0512 (3) VAR.(%) 0612 (9) 0512 (9) VAR (%) 0603 (12) 0503 (12) VAR (%)
Net Sales 274.75 210.27 31 752.88 535.38 41 853.42 658.72 30
OPM (%) 17.8 18.7 18.7 18.0 16.9 17.2
OP 48.9 39.3 24 140.65 96.39 46 144.27 113.19 27
Other Income 6.7 5.3 26 18.72 13.81 36 29.79 10.53 183
PBDIT 55.6 44.6 25 159.37 110.2 45 174.06 123.72 41
Interest 11.32 6.59 72 28.31 20.83 36 29.09 24.85 17
PBDT 44.28 38.01 16 131.06 89.37 47 144.97 98.87 47
Depreciation 10.39 7.55 38 30.61 22.33 37 30.69 28.25 9
PBT 33.89 30.46 11 100.45 67.04 50 114.28 70.62 62
Tax(including FBT) 2.2 9.17 -76 16.93 18.87 -10 17.35 3.8 357
Deferred Tax 6.24 0.83 652 6.62 -3.1 PL 4.91 12.91 -62
PAT 25.45 20.46 24 76.9 51.27 50 92.02 53.91 71
EPS (Rs)* 9.1 7.3 9.2 6.1 8.2 4.8
* Annualized on current equity of Rs 22.35 crore. Face Value: Rs 2. Var. (%) exceeding 999 has been truncated to 999. LP: Loss to Profit PL: Profit to Loss. EO:
Extraordinary items; FBT: Fringe Benefit Tax. EPS is calculated after excluding EO and relevant tax. Figures in Rs crore. Source: Capitaline Corporate Database

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 BgSE FINANCIALS LIMITED
Corporate News
Ispat Industries inks MoU with Jharkhand Govt Further as per MoU, both CREIL and the company will be
responsible for all infrastructural arrangements and
Ispat Industries has entered into a memorandum of
transportation of shipments in China and India respectively.
understanding (MOU) on 12 January 2007 with Government
of Jharkhand for setting up an integrated steel plant. The Castrol to consider December Q3 results, final
proposed steel plant shall initially consist steel making capacity dividend
of 2.8 million tones per annum, which is proposed to be increase
up to 5 million tones per annum in phases. Castrol India’s board will meet on 22 January 2007, to consider
the audited accounts for the year ended 31 December 2006
The intergrated steel plant is to be set-up at Manoharpur, and to recommend a final dividend for the year ended.
Jharkhand. The project entails an investment of Rs 6,750 crore.
Aviva Industries to consider rights issue in 10:1 ratio
Dishman Pharma allots 1 lakh equity shares
Aviva Industries’ EGM will be held on 24 January 2007 to
At the board meeting held on 12 January 2007, Dishman offer and issue shares on rights basis 1,49,90,000 number of
Pharmaceuticals & Chemicals has allotted 1,26,627 equity equity shares of the face value of Rs 10 each.
shares of Rs 2 each, at a premium of Rs 170 per equity share
upon exercise of conversion of 0.50% foreign currency In the ratio of 10 equity shares on 1 equity share held, on the
convertible bonds (FCCB) of the principal amount of $ 5,00,000 record date to be fixed.
into equity shares, to the FCCB holders. Subex Azure to consider December Q3 results,
Consequently the paid-up equity share capital has increased interim dividend
to 6,91,74,008 equity shares of Rs 2 each.
Subex Azure’s board will meet on 29 January 2007, to consider
Rane Engine Valves to consider interim dividend the un-audited financial results for the quarter ended 31
December 2006 and to consider declaration of an interim
Rane Engine Valves’ board will meet on 22 January 2007, to
dividend.
consider the un-audited financial results for the quarter ended
31 December 2006. Further the board will accord declaration LIC Housing to announce December Q3 results
of interim dividend for the year ending 31 March 2007.
LIC Housing Finance’s board will meet on 23 January 2007 to
Zee Telefilms' subsidiaries to merge with ASC consider un-audited financial results for the third quarter
Enterprises ended 31 December 2006 (Q3).
On 12 January 2007, the High Court of Bombay has approved Bharat Forge to declare December ended Q3 results
merger of Siti Cable Network and New Era Entertainment Bharat Forge’s board will meet on 20 January 2007, to consider
Network, wholly owned subsidiaries of the Zee Telefilms, with the un-audited financial results for the quarter ended on 31
ASC Enterprises. December 2006 (Q3).
UTI Bank posts net profit of Rs 184.61 crore for Marico to reduce face value of equity shares
December qtr
At the board meeting held on 12 January 2007, Marico has
UTI Bank has announced the following un-audited results for approved the sub-division of equity shares of Rs 10 each to
the quarter ended 31 December 2006: Rs 1 per share.
The Bank has posted a net profit of Rs 184.61 crore for the Accordingly the board has also considered, financial
quarter ended 31 December 2006 as compared to Rs 131.71 restructuring through adjustment of intangible assets against
crore for the quarter ended 31 December 2005. special reserves.
Total Income has increased to Rs 1469.36 crore for the quarter
Jaiprakash Associates to declare dividend of 20%
ended 31 December 2006, compared with Rs 92.01 crore for
the quarter ended 31 December 2005 At the board meeting held on 11 January 2007, Jaiprakash
Associates has approved an interim dividend of Rs 2.00 per
IDBI to announce December Q3 results share (20%) absorbing a sum of Rs 43.74 crore for the
Industrial Development Bank of India's (IDBI) board will meet financial year ending 31 March 2007. Record date has been
on 22 January 2007 to consider the un-audited financial set on 27 January 2007 for payment of dividend Further,
accounts for the quarter ended 31 December 2006 (Q3). board has approved the formation of special purpose vehicle
for implementation of Taj Expressway Project in terms of the
Gati inks MoU with CREIL, China Concession Agreement.
Gati has signed memorundum of understanding (MoU) with
China Railway Express International Logistics Company (CREIL)
IOC to consider December Q3 results
on 11 January 2007 which will enable both companies to Indian Oil Corporation's (IOC) board will meet on 29 January
service the large base of customers in India and China arising 2007, to consider the un-audited quarterly financial results
out of the India-China bilateral trade. for the third quarter ending 31 December 2006 (Q3). „

7
 BgSE FINANCIALS LIMITED

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