ZEE NEWS LTD. BSE SCRIP CODE 532794

ZEE NEWS : BSE SCRIP CODE 532794

Zee News Limited (ZNL) was de-merged from Zee Telefilms Limited on March 31st 2006 in pursuance of scheme of arrangement approved by the Hon. Bombay High Court on 17th Nov.2006.

People think Zee News is owner of one channel viz. Zee News. They are not aware that Zee News Ltd. has under its belt the following channels : Zee News, Zee Business, Zee Marathi, Zee Bangla, Zee Punjabi, Zee Gujarati, Zee Telugu, Zee Kannada and Zee 24 Taas, the first 24-hour Marathi news channel. 24 Ghanta, a 24 hour Bangla news channel is operated by a subsidiary company known as Zee Akaash News Private Limited.

The company’s share capital is 23.97 Crores made up of 23.97 crore equity shares of Rs. 1.00 each. Promoters group hold about 54 % shares. Institutions and Bodies corporate hold 35 % shares and remaining only 10 percent is with the public. Various Mutual Funds including Reliance Mutual Fund hold substantial shares of Zee News Ltd.

For the full year 2006-07 the company made a profit of about 10 crores and the profit for Half year ended September 2008 has already crossed 11 crores. For qtr. Ending Sep. 07, all the channels had declared profit except Zee Kannada which was in loss. The channel was expected break even shortly.

On a conservative estimate the full year 2007-08 profit may be around 22 crores and going forward the company is expected to utilize all the facilities at its command to report YOY growth of at least 60 percent. Zee channels are having very good penetration levels at all strata of the Society.

Considering the potentialities of Media Sector, we are very bullish on this stock. The stock touched a high of 92 very recently and has fallen drastically. At the present level the stock can be very safely accumulated for a longer term horizon. We expect a price level of 90 in one year and 130 in two years.

People with a longer term horizon can safely consider investing in Zee News Shares.

Kindly note:

a) We advise only regarding fundamentally strong and performing companies. The companies may be mostly profit making and in a few cases, they may be turn around companies.
b) Please go through our fundamental analysis carefully, verify the facts and figures (if you need to) and only then invest.
c) We expect investors to have a time horizon of at least one year and more.
d) We do not advise for short term investing, which is risky.
e) Despite all these, we do not take any responsibility for your financial matters. Investment is solely your decision.


(AJAY SINGH RATHORE)
KASHIWALA

SUDDEN PANIC : CONTINUED

Respected Investors,

The panic in the market is continuing. The matter became so severe that the Hon'ble Finance Minister of India had to come out with a positive message. There were also people shouting abuses at the Finance Minister in Bombay.

Since all the persons associated with me are very careful investors, the following important points should be taken into consideration :

1. Recourse to stock markets/equities should be taken as an investment vehicle and not as a speculative instrument.

2. Investment in shares which are open to F&O should be avoided at all costs and if at all investment has to be done, it should be done on a case to case basis. Shares which are in F&O do not have circuit limits. (Tata Tele has come down from 60 levels to 40 levels. Some shares have lost 50 percent in two days).

3. Hold a longer term horizon. The cycle will take a full round and come up.

4. Do not believe in rumours or baseless tips.

5. The following positive points have emerged :

(a) FM of India has come out with a positive statement.

(b) Americal President George Bush has come out with a positive statement.

(c) U.S. Fed has cut the interest rate by 0.75 percentage point which should go well.

(d) The budget is expected to be good.

Therefore, investors : Have patience. Do not run after the shares which have already run away.

Kashiwala

SUDDEN PANIC IN THE MARKET

Investors are seeing sudden panic in the market and the Sensex has come down from a level of over 21000 to less than 19000. So many analysts are giving a strong support at such and such levels and if the market falls below that they come out with a strong support at downward levels.

Various reasons are being attributed to this fall :

1. Supposedly weak international/global cues.

2. Pressing sales by FIIs.

3. Some analysts believe that people are selling off their shares to invest in Reliance Power IPO.

Each of the above may have contributed to the fall. I never comment on anyone's assessment of a particular event. But I have observed one thing, some intelligent investors/operators have amassed wealth by going short on various big shares. Reliance Energy has fallen from a high of 2600 to about 2050 levels and the list is endless. The big operators must have sold at high levels and entered at low levels. In many big shares, this phenomenon is reflected by a lower delivery percentage (26% to 30%) which coupled with huge volumes indicates intra day trading.

But many small investors who have entered in some shares at a fairly high level are a bit worried. We cannot deal with any individual on a case to case basis, but I would like to give a broader future picture :

i) The belief that FIIs can totally dictate the market is not entirely true. Indian Mutual Funds, ULIPs and institutional investment is almost standing equally tall as FIIs and the Indian entities should be able to withstand the onslaught.

ii) Provident Funds have been allowed to invest some part in the equity markets.

iii) The Government's new pension policy will come about any time (it is on the anvil) and this may bring in more funds.

iv) I understand even Post Offices have been allowed to invest some portion in equity markets.

All the above factors put together will keep the equity market up and running. Small investors need not panic at the present fall. I expect the market to stabilise by last week of January or first week of February.

I again appeal to small investors to follow the following guidelines :

i) Invest in fundamentally strong companies.

ii) Do not get carried away by some one else's short term success.

iii)Have a clear time horizon of at least 1-2 years for your investments to fructify.

iv) Last, but not the least, it is your money that you are investing. If you make profit, you and your family will enjoy. If you make losses, you will suffer.

v) Long term investing will always be positive for you.

MISCELLANEOUS QUERIES

TO ALL INVESTORS :

I have been posting my fundamental analysis of various companies and advising people time and again to have a longer term horizon of at least 1 year or even more. However, I am getting some queries as under :

i) Persons have bought Pearl Polymers based on my recos at 37-38. Now what to do, the price has fallen.

Ans i) Pearl Polymers was recommended after fundamental study at 25 levels with a target of 33 by April 2008 and 45 by April 2009. We still stick to the above targets. Since our recos, the share ran up sharply on the basis of some rumour that some large industrial house is picking up a controlling stake in Pearl's group Company. I do not believe in rumours. Since then Pearl has come to the levels which we had recommended and now it has started inching up. Some persons known to me, who have entered at a high level have averaged, but with a clear understanding that they will hold it for at least one year.

ii) People have entered Noida Toll at 78-80 levels, now what to do.

Ans ii) I request every one to have a waiting period of 1 year in case of fundamentally strong companies. For very short term profit or fast gains, Kashiwala may not be right person to advise you. There are so many paid sites who advise on shares for short gains. I never advise for short term investing.

FUNDAMENTAL ANALYSIS : LESSON 3

FUNDAMENTAL ANALYSIS

LESSON NO. 3


I have been getting good number of e-mails from people who are expecting further lessons in Fundamental Analysis of companies. I am therefore, sending the lesson No. 3 as under :

i) One important ratio is the Debt Equity Ratio. If the ratio is less than one, it means that the company’s borrowings are less than the Equity and if it is more than 1, it means that the borrowings are more than the Equity. Here also there is no proper yardstick laid down, but any Debt Equity Ratio more than 2 is not very healthy.

ii) Analysis of share holding pattern :

a) If the promoters are holding at least 30 percent, and there is substantial institutional holdings (like Banks, Mutual Funds etc.) and also FII holdings (subject to Government regulations), the company is safe bet. In some closely held companies, the promoters holding may be as high as 80 percent. Companies with high promoters’ holding are safe bets.

b) Some companies may be part of a group of companies where cross holdings will be seen. For eg. TVS Group companies, TATA Group companies. In such companies, apart from the income from operations, there will an “Other Income Component” (mostly dividend on shares of group companies held by them). Such companies are reasonably safe for investment.

c) In companies where Government or some Statutory Body is also a share holder, we can safely consider investing in the shares of such companies.

iii) For comparing the performance of a company, it is always advisable to compare the Year on Year growth rather than Quarter on Quarter growth. As mentioned in para (b) above, in group companies when the dividend etc. is declared it may accrue in one particular quarter and in the next quarter the overall income may be less or stagnant for the above reason. Therefore YOY study is a better barometer.

iv) In many cases, there may be an impending news of promoters or persons associated with the promoters or directors who may acquire shares of the company and increase their holdings. The company may be in the process of allotting shares or convertible warrants to above persons. In such cases, it is very very safe and advisable to purchase shares of such companies because, such shares will get re-rated very soon.

For information of all investors, if a promoter or CEO or director or any such person purchases the shares of the company that he is interested in, it is mandatory on his part to disclose such acquisition to the exchange. Similarly, when the company is in the process of allotting such shares, they are expected to inform the exchanges. So, if the investors keep a close watch on such companies, they can find out the details.

For eg. In June/July 2007 M/s DCW were in the process of allotting shares to promoter group and FIIs at Rs.12.00 per share (Rs.2.00 + 10.00 premium). At that time, the share price was moving at around 11.50 to 12.00 and we had sent e-mails to over 40 persons and stated a price target of 20 by March 2008. DCW recently touched a high of about 44.

v) In case of some ancillary companies, if the main companies or the sector is in bad shape, it is better to avoid such ancillary companies. For Eg. Auto ancillary sector was neglected for some time but now analysts are expecting the sector to look up as the auto demand is expected to perk up.

vi) If a holding company floats a subsidiary company and the latter’s shares are issued at a premium in the market and fully subscribed, the holding company’s shares will also get an automatic re-rating. Therefore, it is advisable to enter into the shares of the holding company much before the shares of the subsidiary company are listed. (For eg. Shares of Mahindra & Mahindra got re-rated after successful issue of Tech Mahindra shares). Recently ICICI Bank has decided to list its subsidiaries (Insurance Co. and Mutual Fund). Accordingly shares of ICICI Bank have started inching upwards.

Investors should keep their eyes and ears open for any such news/announcements.

(KASHIWALA)

IDEA CELLULAR LTD.

Dear investors,

IDEA CELLULAR LTD. : BSE SCRIP CODE 532822

M/s Idea Cellular belongs to the Aditya Birla Group and offers GSM based Mobile services in several circles. The company has been granted licence to operate in all circles and will soon have a pan India presence.
The company is slowly and steadily increasing its subscriber base and the promoters do not need any introduction. Most investors who have an idea about wireless telephony business, will appreciate that in the initial years of establishment, the costs are very heavy. But now the cash registers of Idea Cellular have started ringing.

The business and profits come not only from voice calls but also various other sources. Of late SMS is generating lot of income for Cell Companies. Idea Cellular is sponsoring one programme IDEA STAR SINGER CONTEST in Asianet TV (Malayalam) which commands a huge TRP rating wherein TV viewers send SMS to select the winner. Very people know that SMS costs the company hardly anything but the profit is almost 100 percent.

The following very strong points speak in favour of Idea :

i) The company alongwith Bharti and Vodafone has formed a separate Company called Indus Towers, which will handle the tower related business. This is more or less like demerger.

ii) With introduction of 3G, the customers of Cell companies stand to benefit a lot from Internet based services etc. Like all companies, IDEA will also have a share in the pie.

iii) While TTML with a presence in only two circles is commanding a valuation of about 60 per share, IDEA’s share price at 138 or so is very reasonable.

FINANCIALS

The company has an equity capital of Rs.2635 Crores made up of 263 Crore shares of Rs.10.00 each. Promoter group holds 57.69 percent of shares, Mutual Funds, Insurance Companies, Banks and FIIs etc. hold 8.47 percent and Bodies corporate hold about 0.72 percent.

PERFORMANCE

The company’s performance is growing fairly steadily. The company clocked the FY 07 with a net profit of Rs.502 Crores. In the June quarter 2007, the company reported a profit of 193 Crores and in September Qtr. 220 Crores. In a conservative estimate, the company may end up the full year 2008 with a net profit of about 920 Crores which will be 80 percent growth over previous year.

Indian Telecome Sector is the fastest growing in the world. By 2011, the mobile subscriber base is expected to be almost double the present levels. IDEA is fully poised to take advantage of the growth story.

The major plus point seen is the value unlocking in the Tower business, which will add to the bottom line of the company. Further, in new areas the Company can start providing service without too much CAPEX.

Therefore, IDEA is an excellent buy at the current prices for conservative and safe investment. We expect a one year price target of 180 and two year price target of 220.

Accordingly, people with a conservative frame of mind and wanting to invest in sound companies can consider investing in Idea Cellular at the present levels of around 138.

Kindly note:

a) We advise only regarding fundamentally strong and performing companies. The companies may be mostly profit making and in a few cases, they may be turn around companies.
b) Please go through our fundamental analysis carefully, verify the facts and figures (if you need to) and only then invest.
c) We expect investors to have a time horizon of at least one year and more.
d) We do not advise for short term investing, which is risky.
e) Despite all these, we do not take any responsibility for your financial matters. Investment is solely your decision.



(AJAY SINGH RATHORE)
KASHIWALA

REPLIES TO QUERIES

Dear investors,

E-mail ids have been added. Some general queries have been asked which I am responding as under :

DECCAN GOLD MINES :

There is nothing fundamentally great about the company. Their operations for September Quarter was practically zero. It is not clear why the share price is rising. There may be some hidden news like possible take over etc. which has not been leaked out.


STEEL COMPANIES :

Steel sector started looking up recently and every second company joined the bandwagon and started rising. Out of the companies mentioned in the Board, Ispat has climbed for certain reasons. There is considerable institutional holding. Promoters are increasing their stake through issue of warrants and the company is apparently diversifying into construction activity which will result in income from “Other Income Head”.

DENA BANK

Banking stocks have shot up recently. There are two main reasons. With the economy looking up, the Banks act as a barometer. NPAs have been coming down with stringent IRAC and provisioning norms. With lower Net Interest Margins, various banks have sought to increase their income through “Other Income” methods like cross selling of mutual funds and insurance products. From April 2009 onwards, Indian Banking Sector is expected to be opened to Foreign Banks. Therefore, some talks of merger among banks are floating around. This is also one of the reasons for rerating in the share prices of Banks.

SANGHI POLYESTER

Sanghi Polyester is a loss making company. The losses are continuing and it is not known when the company will turn around. The trading volumes are very low in the exchange. Therefore, there is nothing fundamentally strong about the company to comment about.

RAJ RAYON

Raj Rayon appears to be a profit making company. The stock has seen a low of about 17 and is apparently looking up. If there is a rerating of Textile stocks, the share may move up. Investors may make enquiries and take a decision.


ADVANTAGES OF INVESTING IN FUNDAMENTALLY STRONG COMPANIES :

If you invest in fundamentally strong companies, the returns may be less and may accrue after some waiting period but it is worth the wait. Sooner or later, the share price will bounce back. It is not advisable to invest merely on hearsay or Hot Tips or Market Whispers. Some stocks rise very sharply and when they start falling, we will be caught unawares and in a continuous lower circuit fall, we may not be able to sell.

However, the decision to invest or not to invest lies with the investors.

FREQUENTLY ASKED QUESTIONS (FAQs)

THERE ARE SOME FREQUENTLY ASKED QUESTIONS :

QUESTION NO. 1

PEOPLE ASK ABOUT SOME SHARES AND THEIR PROSPECTS.

ANSWER :
IT IS ADVISABLE FOR READERS TO LEAVE THEIR E-MAIL I.D. ALONGWITH THEIR QUESTIONS IN THIS SITE. THEY WILL GET INDIVIDUAL REPLIES, BECAUSE SOME READERS BELIEVE IN CONFIDENTIALITY.

QUESTION NO. 2.
PEOPLE STATE THAT THEY ENTERED A SHARE AT A PARTICULAR LEVEL AND IT HAS STARTED FALLING.

ANSWER :
MY ANALYSIS IS ALWAYS FOR A LONGER TIME FRAME WITH A WAITING CAPACITY OF AT LEAST ONE YEAR. ONE GENTLEMAN PURCHASED NANDAN EXIM AT 4.10 AND WHEN THE SHARE PRICE FELL TO 3.75 HE STARTED FRANTICALLY E-MAILING ME. I ADVISED HIM PATIENCE AND THE STOCK SINCE THEN WENT TO A LEVEL OF 8 OR SO.

QUESTION NO. 3
I AM RECEIVIG E-MAILS ASKING ME THE CHARGES ETC.

ANSWER :
I HAVE REPEATED TIME AND AGAIN : THE SERVICE IS TOTALLY FREE AS I BELIEVE IN THE DICTUM "SERVICE TO HUMANITY IS SERVICE TO GOD".

QUESTION NO. 4 :
WHETHER TO INVEST SOLELY BASED ON OUR RECOMMENDATIONS.

ANSWER :
OUR JOB IS TO ANALYSE COMPANIES ON A FUNDAMENTAL BASIS FOR A LONGER TIME HORIZON. INVESTORS SHOUD USE THEIR JUDGEMENT, USE THE BROAD GUIDELINES PROVIDED BY US, MAKE THEIR OWN CROSS CHECKING, VERIFICATION ETC. AND ONLY THEN INVEST. WE DO NOT BELIEVE IN SHORT TERM TRADING WHICH GIVES JITTERS.

QUESTION NO. 5
SOME BRAVE HEARTED INVESTORS WANT US TO SEND RECOMMENDATIONS ON RISKY STOCKS ALSO.

ANSWER
WE ARE SORRY. THERE MAY BE SO MANY SMALL STOCKS OR PENNY STOCKS WHICH MAY GROW FAST. BUT WE ADVISE ON FUNDAMENTALLY STRONG/SOUND COMPANIES ONLY. MOST OF OUR GROUP MEMBER BELONG TO MIDDLE CLASS WHO ARE INVESTING THEIR HARD EARNED MONEY AND WE CANNOT TAKE RISKS.

I HOPE I HAVE MADE MYSELF VERY CLEAR.

WISH YOU ALL A VERY HAPPY NEW YEAR 2008 AND HAPPY INVESTING.

SUNDARAM CLAYTON LTD. (TVS GROUP)

SUNDARAM CLAYTON LTD. (BSE: 520056 NSE: SUNDRMCLAY)

Sundaram-Clayton Limited (SCL) is part of the US $3 billion TVS group of companies, the largest automotive component manufacturing and distributing group in India. SCL began its operations in Chennai in 1962, in collaboration with Clayton Dewandre Holdings Plc, UK, part of the US $ 2 billion WABCO Holdings Inc., SCL has pioneered the manufacture of air-assisted and air brake systems for commercial vehicles in India. With a commitment of total satisfaction to customers, the company has achieved a share of business in the OE (Original Equipment) segment greater than 85% and a market share in the after-market greater than 75%. The two ventures promoted by SCL viz. TVS Motor Company Ltd. for the manufacture of two-wheelers and TVS Electronics Ltd. for the manufacture of computer peripherals, have already made a mark in their respective segments.

SCL established its Die casting division for quality and high precision aluminium castings. The division's two plants, one at Chennai and the other at Hosur are equipped with the latest technology in Pressure Die Casting, Gravity Die Casting and Low Pressure Die Casting. SCL established its state-of-the-art Software design centre in 2005, an export oriented unit for the Design and development of Embedded and Application software for WABCO.

The company has also got substantial export market of its products.

FINANCIALS

The company has a share capital of Rs.18.97 Crores made up of 1.89 Crore equity shares of Rs.10.00 each. Promoter group (TVS group) and Clayton Gropu hold 80% shares, Mutual funds and insurance companies hold 8%, and other bodies corporate hold 1.6% shares. Thus the balance floating share with public is only 10% viz about 18 Lakhs. Therefore, the trading volume is very low. The company has reserves of 270 Crores which is considered extremely good.

For the FY ending 2006-07, the company made a net profit of 92.7 crores, commanding eps of 48.89 Crores. For the two quarters June 07 and Sept. 07 the company clocked net profit of 18 Crores and 23 Crores. On a conservative basis, the company may end up the full year with almost the same amount of net profit or slightly more. The eps may also be around the same figure, say around 50. However, if the profitability in the Dec. 07 and Mar. 08 quarters increase, the company may even end up with higher eps.

Auto and Auto ancillary sector are expected to get a rerating this year. Further, SCL is going to demerge its Brake business into another company which has already been established, namely WABCO-TVS. Some restructuring in the share capital is also in offing. Matter is pending in Chennai High Court and decision is expected soon. As per scheme of things, the share capital of SCL will get restructured and all share holders of SCL will get one share of WABCO-TVS for every one share of SCL held by them. Record date will be announced by the Board shortly. However, it is expected that demerger process will be expected to be completed within 2-3 months.

During the last 12 months, the stock saw a high of Rs.1400.00 and low of Rs. 650. Presently the share is quoting near to Rs.850.00 which is closer to the low level. Therefore, the down side is fairly limited.

Considering the business potential long term investors can safely invest.

Kindly note:

a) We advise only regarding fundamentally strong and performing companies. The companies may be mostly profit making and in a few cases, they may be turn around companies.

b) Please go through our fundamental analysis carefully, verify the facts and figures (if you need to) and only then invest.

c) We expect investors to have a time horizon of at least one year and more.

d) We do not advise for short term investing, which is risky.

e) Despite all these, we do not take any responsibility for your financial matters. Investment is solely your decision.

REVISITS OF EARLIER POSTS : TWO

Dear All Investors,

POSTS REVISITED


We are getting overwhelming response, because people have found the advantage of investing based on good fundamental analysis, rather than depending in so called Hot Tips and Market Whispers.

With your kind permission, I am revisiting some of our earlier posts :

ALPS INDUSTRIES

Alps Industries was recommended when it was ruling around 51 levels with a target of around 90 by April 2008. The share has already touched 84 on 4.1.2008. Two positive factors have emerged for the company (a) the company has set up an ultra modern manufacturing facility at Uttaranchal (with all the attendant tax benefits) and the full benefits will start accruing from the next quarter. (b) The Company management has declared having set up a subsidiary which will enter into Power business. Both these factors augment well for the company and our targets will be easily met and surpassed..

Therefore, Alps is a clear hold.


AUTOLINE INDUSTRIES

The share was recommended when it was ruling at around 156-160 levels with a target of 240 by April 2008. The target has already been achieved. The following positive news items have surfaced : (a) Autoline has acquired one company overseas which will result in increased top line and bottom line. (b) The company has allotted shares to some entities at a substantial premium. This shows the strength. The target of 240 set for April 2008 has already been touched in December 2007 and at this pace, the share may reach higher levels.

Therefore, Autoline is also a clear hold.

UNICHEM LABS

Unichem is moving on the expected lines. It was recommended at around 190 and we had set an aggressive target of 300 for April 2008. We understand that Reliance capital has picked up substantial shares of the company. Pharma Sector is expected to get rerated this year. The share had already touched an high of 242 during recent times and 300 is not very far off. Unichem is a safe investment and should be available in everybody’s portfolio. The share is now ruling at around 220-230 levels and a couple of circuits may take it to more than 300 levels.

Therefore, Unichem is also a clear hold for the time being.

WEST COAST PAPER

This share was recommended when it was ruling at around 91 levels with a target of 150 in one year (by December 2008). The share has since then inched up to 113 levels (in one month). In one of the leading financial papers, this share has been very positively commented upon and is slated to be a multibagger by 2010. For investors with a long term horizon, it can be accumulated even at this stage.

Therefore, West Coast Paper is a hold.

PEARL POLYMERS LTD.

The stock was recommended at 25 with a target of 33 by April 2008. The stock already touched 37 on 4.1.2008 and is moving in the right direction. People who entered at 25 levels are sitting on almost 50 percent profits within one month. Some people are e-mailing me whether to book profits. As I have stated earlier, booking profits is the sole discretion of the investors. I leave it to you.

Kindly note :

a) We advise only regarding fundamentally strong and performing companies. The companies may be mostly profit making and in a few cases, they may be turn around companies.
b) Please go through our fundamental analysis carefully, verify the facts and figures (if you need to) and only then invest.
c) We expect investors to have a time horizon of at least one year and more.
d) We do not advise for short term investing, which is risky.
e) Despite all these, we do not take any responsibility for your financial matters. Investment is solely your decision.


(AJAY SINGH RATHORE)
KASHIWALA

JAGSONPAL PHARMACEUTICALS LTD.

JAGSONPAL PHARMACEUTICALS LTD: (BSE: 507789 NSE: JAGSNPHARM

M/s Jasgsonpal Pharma belongs to the Jagmohansingh Kochar Group. The company has got various bulk drug formulations and various other kind of drugs with an excellent sales network spread all over the country as well as various other countries. Besides, the company has also got excellent R&D facility with ultra modern factory at Delhi.

Starting from a chemist shop in Delhi 40 years back, the company has come long place and has created a niche place for itself in the pharma world.

The company has a share capital of Rs. 13.10 Crores made up of 2.62 Crore shares of Rs.5.00 each. Out the above, the promoters, Kochar group hold about 66 percent. About 5 percent shares are held by high networth individuals/bodies. The remaining about 30 percent is held with the public.

The company issued bonus shares and split its face value from Rs.10.00 to Rs.5.00 during the year 2004. Even now it is commanding a good book value. The price to book value ratio is also quite favourable for prospective investors. The company is profit making and dividend paying.

The company made a net profit of 4.96 crores for FY 06 but the profit took a dip to Rs.2.78 Crores for FY 2006-07. However, for the 1st two quarters ending June 2007 and September 2007 the company has tremendously increased its performance. The profits for June 2007 were 0.75 Crores and for Sept. 1.71 Crores, thus the half year profit for FY 08 has already touched Rs.2.46 crores. The remaining two quarters are expected to increase the bottom line (on a conservative basis) by 3.0 crores, thus taking the total profit to about 5.5 crores which will be almost double the FY 2006-07 profit.

Thus the eps expected for the full year ending March 2008 is expected to be 2.10. On a conservative estimate, our expectations of future growth in EPS is :

FY 2008-09 PROFIT : 8.00 CRORES EPS 3.05
FY 2009-10 PROFIT : 12.00 CRORES EPS 4.61
FY 2010-11 PROFIT : 15.00 CRORES EPS 5.76

Even if the share trades at 20 times the present earnings, the share should see a level of 42 by April 2008, about 60 by April 2009 and 85 by April 2010. Please take into account the fact that the eps is calculated on shares of FV Rs.5.00.

Pharma Sector was somewhat neglected during whole of 2007. Analysts are expecting a rerating of this sector during 2008. Fundamentally also, Jagson Pharma is worth looking at.

Conservative investors can safely accumulate Jagsonpal shares, which are currently ruling at around 33 with a clear holding of 2 years.

Kindly note :

a) We advise only regarding fundamentally strong and performing companies. The companies may be mostly profit making and in a few cases, they may be turn around companies.
b) Please go through our fundamental analysis carefully, verify the facts and figures (if you need to) and only then invest.
c) We expect investors to have a time horizon of at least one year and more.
d) We do not advise for short term investing, which is risky.
e) Despite all these, we do not take any responsibility for your financial matters. Investment is solely your decision.


(AJAY SINGH RATHORE)
KASHIWALA