MULTIBAGGER - ALPS INDUSTRIES

The company is a leading manufacturer of home furnishing , fashion accessories and architectural products. It markets its products under the brand name Vista. The company had come out with an Public Issue in Oct 2005 . Further in March 2006 the company had issued GDR for its expansion plans. The company has formed a wholly owned subsidiary in U.S.A. in April 2007 for exploring export opportunities. The coming months are very bright for the company . First of all the expansion project of around 400 cr has been fully commissioned in Dec 2007. The quarter ending March 2008 results will fully reflect the benefits of expansion. The Yarn spinning capacity has been increased to 155 tpd from the present 97 tpd. The new yarn spinning unit has 66000 spindles. Weaving capacity has been increased to 27 mill.Sq.mt. the present 19 mill.Sq.mt. The company has recently announced on 4 Jan 2008 it is foraying into Energy sector, through a wholly owned subsidiary which may listed later this year. It is setting up two hydro power projects of capacity 150 mw each. Foraying into Energy sector will give better valuations on the bourses. The company had issued bonus shares in the ratio 1:1 in Sep 2006. For quarter ending March 2008 the company will show more than 100% growth in sales and profit as compared to March 2007 quarter results. Buy now at declines around 45 for decent gains before it catches the fancy of big Investors. The P.E. of the company is the lowest when compared to others in its sector. Downside potential is very limited. Expected price within one year is 120.

Risk factors include low valuations given to textile industry. It will take some time for the Power projects to add to revenues.

MARKET VIEW

As stated yesterday the market staged a recovery late in the afternoon. This was bound to happen as some sort of correction to the downslide was due. The market may move sideways for some sessions or may gain up a bit. Perhaps after that the market will enter a bearish phase depending upon global cues.

Earlier short term recommendations –

Scrip	Recommendations	Target	Remarks
Reliance Power	sell@384	371	Hold
Cipla	sell@201	194	Hold
Zee Ent.	sell@262	248	Hold
Hindalco	sell@201	194	Hold
Colgate	sell@409	392	Hold

Today’s short term recommendations –

Scrip	Recommendations	Target	Remarks
Satyam	sell@438	426	--
LIC Hsg Fin	sell@299	292	--
Gitanjali gems	sell@295	286	--

Short term trading is always risky, it is better to go for long term investment with a perspective of at least 1 year.

CRICKET- What a finish to a long Australian tour. Everything in favour of the Indians. Perhaps the only accolade missing the Indians was the man of the series going to an Australian, Nathan Bracken. Could you expect a better climax to Bhajji-Symonds and Bhajji-Hayden controversial episodes, with Bhajji getting both of them out in both the finals. Both of Sachin’s innings were reminiscent of the twin innings he had played in Sharjah, and that too against the Aussies. The BCCI seems to have gone overboard with the win in handing out 10 cr for the team. It would be better if the BCCI distributes some of its profits to other sports and sport persons on achieving victories in similar events.