"Contrarian 24"

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1	ANAND RATHI SECURITIES LTD
2	CONTRARIAN 27
3	A K Prabhakar, Research, South Region
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6	Contrarian 24  A K Prabhakar, Research
7	S.No	Scrip Name	Website	CMP(Rs.)	Possible Target by Dec-o8 (Rs)	Reasons
8	1	Cairn India Limited	http://www.cairnindia.com	220	320	CAIRN's discovery in the Rajasthan block is a big step towards reducing reliance on imports to meet India's ever-increasing oil needs. At peak production, Cairn's crude production should account for 17% of India's total crude production. With Crude prices at $110, the company is expected to do extremely well. Recently company did a Private placement at Rs 224/share. Company buyout is also not ruled out.
9	2	Ranbaxy Laboratories Ltd	http://www.ranbaxy.com	453	540	Incorporated in Jun.'61 as a private limited company, Ranbaxy Laboratories (RLL) manufactures and markets pharmaceutical dosage forms (for human health care), animal health care products, bulk drugs and intermediates, diagnostics, laboratory chemicals and reagents. It is the largest exporter of bulk drugs and pharmaceutical dosage forms in India. The board of RanbaxyLaboratories has cleared a scheme of de-merger of the company's New DrugDiscovery Research (NDDR) unit into a subsidiary, Ranbaxy Life ScienceResearch (RLSRL). This is subject to requisite approvals.
10	3	Maruti Udyog Ltd	http://www.marutisuzuki.com	812	980	Company sales are rising every month and yearly results are expected to be good. They can make India a manufaturing hub and a big exporter of cars.
11	4	India Cements Ltd(ICL)	http://www.indiacements.co.in	170	235	India Cements Ltd(ICL) was established in Feb.'46, it is a diversified company with interests in cement, shipping and real estate development. It is the largest producer of cement in South India with 28% market share. The company has access to huge limestone resources. India Cement plans to become a pan-india player with facilities in Rajasthan, Himachal and Madhya Pradesh. The company is very attractive at current levels with P/e of just 7.
12	5	Tamilnadu Newsprint and Papers Ltd(TNPL)	http://www.tnpl.co.in	90	125	TNPL, promoted by the Government of Tamilnadu, manufactures paper from Bagasse  i.e. sugarcane waste and uses as little wood as possible. It is the largest producer of Bagasse based paper in the world. It has a good dividend yield and is a long-term bet from paper industry. The company has already started wind-power generation. Its other plans inclue foraying into cement production and setting up an IT Park with their surplus land.
13	6	Puravankara Projects ltd	http://www.puravankara.com	223	360	The company was incorporated on 1986 in Mumbai as Puravankara Constructions Private Limited. It is in talks with Blackstone,Goldman Sachs, Lehman Brother and American International Group to sell stakes in projects spread in the South region of India. The company has a direct sales model and a very low-cost land bank. FIIs like this stock as Purvankara is not into making POAs for land deals. They have the least outstandings when it comes to payment of land holdings. The co is interested only in the Southern part as they know the dynamics better in those parts.
14	7	Corporation Bank	http://www.corpbank.com	239	310	Founded in March 1906, Corporation Bank (CBL) (formerly Canara Banking Corporation) is a 99 year old bank. The bank had its origin in the temple town of Udupi in Dakshina Kannada Dist. of Karnataka.Thecapital adequacy ratio as on December 31, 2007, was 12.07 per cent. GrossNPA level has dipped to 1.71 per cent compared to 2.13 per cent in theyear-ago period.The total income of the bank increased to Rs 1,265.83 crore, a growth of23.2 per cent, compared to the same quarter last financial year. The netinterest income rose marginally by 6 per cent to Rs 333.69 crore.
15	8	GT Offshore	http://www.greatoffshore.com	581	820	Great Offshore is India's prominent integrated offshore oilfield services provider offering a broad spectrum of services to upstream oil and gas producers to carry out offshore exploration and production (E&P) activities. From drilling services to marine and air logistics, from marine construction to port/terminal services and beyond, Great Offshore meets a wide gamut of the offshore requirements of an E&P operator.Mumbai-based Great Offshore is an Indian offshore services firm that wasseparated from Great Eastern Shipping Company in 2006.The company's current equity is Rs 38.12 crore. Face value per share is Rs10.  The overseas company has placed orders for two semi-submersible rigsestimated to cost about $1.4 billion.
16	9	Renuka	http://www.renukasugars.com	990	1250	Shri Renuka is primarily a sugar producer, refines raw sugar  and does sugar trading through its Dubai subsidiary. Currently, ethanol, cogeneration power and refined sugar account for 14% of the company's gross revenues, which is expected to increase to 40% in FY08. Company should benefit by the latest Indian Government annonucement about blending 10% ethanol in October 2008. The importance of ethanol will increase once it is accepted as a fuel and also manufactured and sold in India. Thus Shri Renuka stands to benefit by production of domestic ethanol as an alternative fuel when that becomes a policy measure.
17	10	Exide	http://www.exideindustries.com	57	78	Exide Industries(EIL) was incorporated in Jan. 1947, manufactures and markets secondary lead acid storage batteries for automotive and industrial applications. Moreover company owns 50% stake in ING Vysya Life Insurance Co which can unlock big value for shareholders in the long-term. Definitely a Value-buy at this price.
18	11	Mahindra & Mahindra (M&M)	http://www.mahindra.com	636	775	Mahindra and Mahindra, a home grown automobile major is into manufacture and marketing of utility vehicles, light commercial vehicles and tractors. But other than this, company has stakes in Tech Mahindra, Mahindra Ugine, Mahindra Holiday Resorts. The company can see huge unlocking of value.
19	12	ITC Ltd	http://www.itcportal.com	183	220	ITC Ltd. a leading FMCG Cigarette major is one of the most valuable companies of India. Rated among the World's Best Big Companies by Forbes magazine. Eventhough ITC is renowned for its Cigarette business it also has business interests in Hotels; Paperboards, Paper & Packaging; agri exports and some other FMCG products like branded packaged foods, safety matches, Incense Sticks and Greeting Cards etc.Under ESOS ITC has issued and allotted 6,43,090 ordinary shares of Re 1each, upon exercise of 64,309 options by optionees under the ITC ESOS. Consequently, with effect from 18 February 2008, the issued andsubscribed share capital of the company stands increased to Rs376,72,79,690 divided into 376,72,79,690 ordinary shares of Re 1 each.
20	13	Biocon Ltd	http://www.biocon.com	398	500	Biocon Ltd was incorporated in the year 1978. Biocon is India's largest biotech company with a presence in bio-pharmaceuticals, enzymes, customs research and clinical research. The company was promoted as a joint venture with Ireland-based MNC Biocon Biochemicals. Later, Unilever Plc acquired Biocon Biochemical's stake in February 1995, but sold it to the current promoters in June 1999.  For a consideration of Ç30 million Biocon has reached agreement to acquirea 70% stake in German pharmaceutical company, AxiCorp GmbH for aconsideration of Ç30 million With the strategic investment in AxiCorp, Biocon establishes its firstpresence in Europe in order to market its injectible insulin on its own,and also to build up marketing and distribution capabilities for many otherproducts of its portfolio.
21	14	Nagarjuna Fertilizers and Chemicals (NFCL)	http://www.nagarjunafertilizers.com	35.7	47	Nagarjuna Fertilizers and Chemicals (NFCL), a flagship company of Nagarjuna Group was incorporated on 28 Jan.'76. It was originally promoted by the Shaw Wallace group, and later taken over by the Government of Andhra Pradesh.Net profit of Nagarjuna Fertilizers & Chemicals rose 35.06% toRs 5.47 crore in the quarter ended December 2007 as againstRs 4.05 crore during the previous quarter ended December 2006. Sales rose28.02% to Rs 624.20 crore in the quarter ended December 2007 as against Rs487.57 crore during the previous quarter ended December 2006.
22	15	Amtek Auto	http://www.amtek.com	256	350	Amtek group has presence in 3 continents and large players like General Motors, …. Have tie-ups with this company for supplies. Company is sitting on good cash levels for acquisitions. It was a laggard because of dollar weakness and now as dollar is stabilizing, company should benefit and outperform.
23	16	Mundra Port and Special Economic Zone	http://www.portofmundra.com/	502	780	The company was incorporated as Gujarat Adani Port Limited on May 26, 1998, and commenced phased operations at Mundra Port in October 1998 with commercial operations beginning in October 2001.Mundra Port and Special Economic Zone is engaged in providing portservices for bulk cargo, container cargo, crude oil cargo and value- addedport services, including railway services. It also generates income fromland related and infrastructure activities.The port is in talks with all the leading domesticairlines to start commercial flights by June this year. The group is alsolooking for partners to develop maintenance and repair facilities at theairport and also provide for aircraft parking in the long run in UK.
24	17	Punj Llod	http://www.punjlloyd.com	307	395	The company provides engineering, designing, procurement, construction andproject management services for energy industry and infrastructure sector projects.Sembawang Infrastructure India, which won the order, is an arm of Singapore's Sembawang Engineers & Constructors that is fully owned by PunjLloyd.Punj Lloyd has announced that a consortium led byPunj Lloyd has been awarded the Sabah Sarawak gas pipeline project for anapproximate value of US$ 500 million by Petronas Carigali Sdn Bhd, asubsidiary of Petronas, the State Oil and Gas Major in Malaysia.
25	18	Bata India Ltd	http://www.bata.in	140	195	Incorporated in 1931, Bata India (BIL) was promoted by the Toronto-based Bata Shoe Organisation, which has a 51% stake in the company. The company has 35% market share in India through its 1200 retail stores. Recently Reliance Retail tied up with Bata to jump-start its footwear vertical. Its a win-win situation for Bata as it will get an exclusive corner in all Reliance Footprint stores.
26	19	Suzlon Energy	http://www.suzlon.com	239	350	Suzlon is the world's third largest wind turbine manufacturer; with market share of around 12% in the world. It owns 71% of Hansen Transmission, world's second largest wind-turbine gearbox manufacturer. Repower acquisition will provide it state-of-the-art technology. The best company to invest in alternative energy space.
27	20	Power Grid	http://www.powergridindia.com	92	124	Power Grid has 20000km of Optic-Fibre cable network spanning 100 cities in the country. It has order of over Rs 300 crore  from various telecom players for leasing the optic fibre bandwidth. This diversification of business will help improve income and margin growth and give extra income from the existing infrastructure. It has about 2 lakh towers across the country.
28	21	Reliance Indstries	http://www.ril.com	2145	2787	Reliance Industries is all set to double India's gas production as supplies from KG-D6 commence in H2 FY2009. But this is just one block from its portfolio of high potential assets. RIL has emerged as one of the largest and most efficient player in petrochemical business across the world. Reliance Retail and Reliance SEZ are good prospects for this company.
29	22	Bharti Airtel	http://www.bhartiairtel.in	758	950	Bharti Airtel is a leader in the Indian telecom scenario, the telecom penetration level in India is very low around 23%. This situation is favourable for players like Bharti, who has been giving good results consistently. The company has already got 1000 IPTV customers in NCR. Bharti Airtel plans a nation-wide launch of IPTV and Dish TV.
30	23	Infosys	http://www.infosys.com	1313	1650	The slowdown of US economy and weak dollar has been an anxiety for IT industry in India off late. However, Infosys has a robust business model which should enable it to maintain margins in the long run. Demand outlook for the company is still strong and pricing increases are still coming. It is a decent bet from Technology Sector.
31	24	Asian Electronics Limited (AEL)	http://www.aelgroup.com	190	290	Asian Electronics Limited (AEL) is involved in design, manufacturing and marketing of of Energy Efficient Products and specializing in lighting solutions.AEL's nationwide presence and strategic international partnerships is making its mark in the Lighting world. The company is in tie-up with HPCL to process refinery bottoms into fuel. They also intend to foray into power generation via a JV.
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38	Meant only for South Region.
39	Disclaimer:-
40	This report has been issued by Anand Rathi SecuritiesLimited (ARSL), which is regulated by SEBI. The information herein was obtained from   various sources; we do not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes an offer, or   an invitation to make an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities ("related   investments"). ARSL and its affiliates may trade for their own accounts as market maker / jobber and/or arbitrageur in any securities of this   issuer(s) or in related investments, and may be on the opposite side of public orders. ARSL, its affiliates, directors, officers, and employees may   have a long or short position in any securities of this issuer(s) or in related investments. ARSL or its affiliates may from time to time perform   investment banking or other services for, or solicit investment banking or other business from, any entity mentioned in this report. This research  report is prepared for private circulation. It does not have regard to the specific investment objectives, financial situation and the particular needs   of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any   securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects   may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise   or fall. Past performance is not necessarily a guide to future performance. Foreign currency rates of exchange may adversely affect the value, price   or income of any security or related investment mentioned in this report.