Easier Access, Wider Reach Vol.

0809/42, August, 2008

For Private Circulation only

The Monthly Business Magazine from Inter- Connected Stock Exchange of India Ltd.

CEMENT INDUSTRY

Market sensitivity

Exporting Capacity

Quality Improvement

Technological
innovations in exploration

....Changing the growth

paradigm...
 The Monthly Business Magazine
from Inter- Connected Stock Exchange of India Ltd.

In case you are interested in issuing an advertisement in our publication, please contact:
Mr. P. R. Santhosh / Ms. Rashmi Rani at 9969278960 / 9320278926
 CONTENTS
CONTENTS

Vol. 0809/42, August, 2008

Editorial Team Cement Industry

Business Editor

10
10
Rashmi Rani Sector Analysis Sectoral over view on Indian Cement
Sector. It's covering total production
Graphic Designer
P. R. Santhosh Cement Sector: Pg
capacity, Projections. Giving a idea about
total market players in the cement sector
Registered Office and present and future scenario of the

International Infotech Park,

Changing the Growth Paradigm particular sector.
Tower 7, 5th Floor, Sector 30, Vashi,

22
Navi Mumbai - 400 703, Maharashtra Company Analysis
Tel. : (022) 6794 1100 / 2781 2056 / 58 / 59 / 60 / 62
Ext : 151 Fax : (022) 2781 2061
Ultra Tech Cement Limited:
Pg
e-mail : research@iseindia.com
Website : www.iseindia.com
Cementing Future
Branch Offices
Kolkata
EDITORIAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Mukti Chambers, 4th Floor, Room No. 403, 4, Clive
Row, Kolkata-700 001. CAPITAL MARKET: AT A GLANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-5
Tel. : (033) 2221 3392
FUND FACT SHEET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Coimbatore MUTUAL FUND WATCH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Coimbatore Stock Exchange Building,
CSX Towers, 683-686, Trichy Road, Singanallur, UTI Gold Exchanges Traded Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Coimbatore-641 005.
REGULATORY NEWS CORNER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-9
Tel. : (0422) 2315100/2315101
ISE SECTOR FOCUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
New Delhi
16/11, 3rd Floor, RD Chamber, Arya Samaj Road, Indian Cement Sector: Changing the growth paradigm . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-15
Karol Bagh, New Delhi - 110005. SECTORAL DASHBOARD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-19
Ph:-9311410777
STOCK PERFORMANCE INDICATORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Nagpur
VALUE INVESTING (on Cement Sector) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
F-2, 1st Floor, Narmada Plaza,
Beside VIP Road, Dharmpeth, Nagpur-12. ISE COMPANY ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Tel.: 0712-2540656 (M) 9373101634
Ultra Tech Cement Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22-27
Hyderabad
ISE IPO TRACKER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
101-103, 1st Floor,
Kubera Towers, Narayanguda, Most Focused IPOs: Vishal Information Technologies Limited . . . . . . . . . . . . . . . . . . . . . . 29-30
Hyderabad(A.P),
Tel: 040-40020031 (M) 9949902111 ACADEMIC CORNER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31-32
GLOBAL ECONOMIC CORNER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33-34
Tirunelveli
G64-D, Nellai Plaza, 2nd Floor, Madurai Road, ISE 100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35-39
Tirunelveli
Large Cap Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Ahmedabad
Shop No. 4, Valmik Complex, Near Parimal Garden, Mid Cap Companies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Ellisbridge, Ahmedabad - 380 006.
Tel.: (079) 26460870 Small Cap Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Patna DOMESTIC NEWS CORNER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

803, Ashiana Plaza, 8th Floor, Buddha Marg,
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From The Editor’s Corner
From The Editor’s Corner
Indian stock market:
Composition of many components
S
ome economists
and finance
analysts believe
that when an
industry is overvalued, a
correction takes place.
Say, if the asset prices
are increasing but the
intrinsic value has
remained almost the
same, then a bubble is
said to occur, which is
sure to burst in the near
future. Likewise, some
believe that the Indian
markets were overvalued
and the recent crash
which occurred was just a
correction.
Advertising enquiries may be
directed to
prsanthosh@iseindia.com.
Subscription requests may be sent
to research@iseindia.com. For
assistant contact ISE Research
Cell at 6794 1100. For further
queries contact Rashmi Rani -
Business Editor at 9320278926
2 V Share August, 2008
F
or the second straight year GDP had posted impressive growth rate. The Indian
economy will be growing not less than 9 per cent. According to OPEC “Organization of
the Petroleum Exporting Countries” the price volatility is due to inadequate refining
capacity and growing demand for petroleum products and has proposed increased
investment in the petroleum industry as a measure to moderate petroleum prices. OPEC has
announced that it will increase production to bring down prices.
Market sentiments play an increasingly important role
in the fixing of share prices. News such as decrease in
interest rates, good rainfall, etc promotes investment
thereby raising the price of the indices in the process.
But bad news such as a bomb blast or an earthquake
the investors see, thereby lowering the indices. A
reduction in interest rates, promotes cheaper
borrowing, thus facilitating more investment. While a
good rainfall increases agricultural production, which
has an impact on the various industries which make use of agricultural inputs. Game theory
helps in explaining how the investors react. When an investor hears a bad news, he thinks that
other investors will pull out their investment owing to increased need of contingency funds.
When all the investors think alike, a large scale selling occurs. I classify it as a typical group
phenomenon, arising out of an individualistic tendency.
The investors in these markets form consortiums among
themselves such that, a group of these investors are able
to make changes in the overall market indices. FII's are
one such group. When they think, the time has come to
book profits; they take up a selling position. This causes
the market to fall and when the market falls, these groups
again buy the shares; thus making profits again out of their
buying back the shares. This phenomenon is possible only if
the group's transactions can exercise a considerable
influence in the concerned market.
There are other financial instruments in the market
known as the Mutual Fund (MF), Insurance, and Pension
Funds etc. Government is encouraging these funds to
invest in market to curve volatility. They are specialised institutional investors who mobilise
funds from the public and invest in the capital markets. The people consider investing in such
funds less risk than shares. It is a booming market but has not utilised its full potential. These
funds are a good option for those investors who do not have time to make a detailed analysis
about the economics of the capital market. Recently investment gurus have been stressing the
importance of commodity markets. They are gaining importance in the Indian market. Some
economists and finance analysts believe that when an industry is overvalued, a correction takes
place. Say, if the asset prices are increasing but the intrinsic value has remained almost the
same, then a bubble is said to occur, which is sure to burst in the near future. Likewise, some
believe that the Indian markets were overvalued and the recent crash which occurred was just a
correction.
In the previous months, we might all have come across the headline that Indian economy is
booming and sooner or later stock market will also reflect the buoyancy of Indian economy. The
market indices are just indicators of the investor's confidence levels and the business
enthusiasm levels. We should not view the markets in isolation and say that the economy is
doing well.
Editor
ISE Research
CAPITAL MARKET: AT A GLANCE

Market Pulse

A
comparative evaluation of five
major indices and their
parameters are presented in
table 1. The market capitalization of BSE
Sensex is increased by 6.07 per cent to
Rs. 2112318.43 crore as on July 24,
2008 from Rs. 1991399.97 crore as on
June 25, 2008. The market capitalization
of NSE S&P CNX Nifty is decreased by
12.51 per cent to Rs. 2607642.04 crore
as compared to Rs. 2933759.00 crore
during the same period. We have
calculated the volatility of five major
indices viz. Sensex, BSE Midcap, BSE
Smallcap, S&P CNX Nifty and Nifty Jr.
and all these major indices lie in similar
volatility range of 1.5 to 3.5. Nifty Jr has
been most volatile with 3.58 per cent
followed by BSE Sensex with 3.38 per
cent in the same month July, 2008. The
P/E ratio of Sensex and Nifty are 17.74
and 18.79 respectively as on July 25,
2008 compared to 17.17 and 17.91 a
month ago. A very major change is
visible in the turnover of major indices.
The turnover of BSE Sensex stroked to
41.64 per cent to Rs. 2273.16 crore as
on July 24, 2008 from Rs. 8512.48 crore
on June 25, 2008. The turnover of CNX
Nifty Index increased to 29.71 per cent
from Rs. 6562.43 crore in July 4, 2008 to
Rs. 8512.48 crore in July 25, 2008.
The Indian market has been like a
rollercoaster in the month of July, 2008
concerning that the rise in input costs
and tough macro economic
environment comprising high inflation,
record high global crude oil prices and
rising interest rates and slowdown in
earnings growth of India Inc impacted
the stock market negatively but the
affirmative move on nuclear deal has
given some soothing flows in stock
markets (see the table 2). BSE Sensex
has touched the level of 14924.28 on
July 23, 2008 and dropped down to the
lowest level of 12575.80 in the same
month July 16, 2008 a total fall of
2348.48 points or 18.64 per cent. CNX
Nifty has shown the same downtrend in
the month of July, 2008 with a change
of 660.10 points or 17.29 per cent from
the level of 4476.80 as on July 23, 2008
to the level of 3816.70 on July 16, 2008
(data from 1 June to 24 July, 2008).

TABLE 1: MOVEMENT OF MAJOR INDICES

Full Mkt cap (Rs. cr.) Volatility P/E as on Turnover on 24,
Indices Beta
on 24 July 08 (01 June- 25 July, 08) 25, July 2008 July 08 (Rs. In cr)

Sensex 2,112,318.43 1 3.38 17.74 2,273.16

BSE Midcap 666,615.97 1 2.16 14.07 1,156.24
Smallcap 208,885.23 1 1.96 10.61 380.31
Nifty 2607642.04* 1 3.06 18.79 8512.48*
Nifty Jr 424886.96* 1 3.58 13.23 2472.41*
*as on July 25, 2008

TABLE 2: DAILY MOVEMENT IN S&P CNX NIFTY, CNX NIFTY JUNIOR,

BSE SENSEX, BSE MID CAP & BSE SMALL CAP
S&P CNX NIFTY CNX NIFTY JUNIOR BSE SENSEX BSE MID CAP BSE SMALL CAP
Date
Close % Change Close % Change Close % Change Close % Change Close % Change

1-Jul-08 3896.75 - 5916.75 - 12961.68 - 5141.86 - 6385.11 -

2-Jul-08 4093.35 5.05 6276.45 6.08 13664.62 5.42 5311.30 3.30 6506.80 1.91
3-Jul-08 3925.75 -4.09 5982.50 -4.68 13094.11 -4.18 5161.76 -2.82 6349.17 -2.42
4-Jul-08 4016.00 2.30 6219.05 3.95 13454.00 2.75 5278.24 2.26 6449.67 1.58
7-Jul-08 4030.00 0.35 6360.85 2.28 13525.99 0.54 5339.81 1.17 6593.01 2.22
8-Jul-08 3988.55 -1.03 6371.70 0.17 13349.65 -1.30 5315.99 -0.45 6562.62 -0.46
9-Jul-08 4157.10 4.23 6699.70 5.15 13964.26 4.60 5470.68 2.91 6789.88 3.46
10-Jul-08 4162.20 0.12 6691.40 -0.12 13926.24 -0.27 5475.20 0.08 6809.24 0.29
11-Jul-08 4049.00 -2.72 6446.75 -3.66 13469.85 -3.28 5365.34 -2.01 6713.66 -1.40
14-Jul-08 4039.70 -0.23 6382.50 -1.00 13330.51 -1.03 5330.80 -0.64 6640.06 -1.10
15-Jul-08 3861.10 -4.42 6118.90 -4.13 12676.19 -4.91 5163.51 -3.14 6430.90 -3.15
16-Jul-08 3816.70 -1.15 6012.20 -1.74 12575.80 -0.79 5088.28 -1.46 6324.45 -1.66
17-Jul-08 3947.20 3.42 6205.55 3.22 13111.85 4.26 5155.34 1.32 6387.12 0.99
18-Jul-08 4092.25 3.67 6395.35 3.06 13635.40 3.99 5239.39 1.63 6455.89 1.08
21-Jul-08 4159.50 1.64 6434.35 0.61 13850.04 1.57 5256.99 0.34 6437.98 -0.28
22-Jul-08 4240.10 1.94 6648.65 3.33 14104.20 1.84 5346.03 1.69 6536.42 1.53
23-Jul-08 4476.80 5.58 7164.20 7.75 14924.28 5.81 5615.94 5.05 6812.64 4.23
24-Jul-08 4433.55 -0.97 7117.25 -0.66 14777.01 -0.99 5580.90 -0.62 6796.11 -0.24
25-Jul-08 4311.85 -2.74 6985.40 -1.85 14274.94 -3.40 5572.59 -0.15 6778.78 -0.25

V Share August, 2008 3

CAPITAL MARKET: AT A GLANCE
BSE SENSEX : TOP 10 GAINERS & LOSERS
SENSEX GAINERS SENSEX LOSERS
Price as on Price as on Price as on Price as on
Company % Change Company % Change
July 21, 2008 June 23, 2008 July 21, 2008 June 23, 2008
BHEL 1506.45 1361.45 10.65 ACC 542.35 605.80 -10.47
Bharti Airtel 798.45 758.15 5.32 Grasim Inds. 1727.85 2147.45 -19.54
Cipla 226.45 212.05 6.79 ICICI Bank 644.10 721.35 -10.71
DLF Ltd 463.40 446.25 3.84 Infosys Tech. 1561.80 1847.50 -15.46
Jaiprakash Assoc 166.55 153.35 8.61 Ranbaxy Labs. 458.20 513.45 -10.76
Larsen & Toubro 2513.05 2396.30 4.87 Reliance Communi 446.60 487.90 -8.46
NTPC 181.45 162.05 11.97 Satyam Computer 367.10 459.80 -20.16
ONGC 955.25 887.30 7.66 Tata Motors 420.05 488.40 -13.99
Reliance Inds. 2153.30 2022.20 6.48 Tata Steel 598.50 745.55 -19.72
St Bk of India 1347.45 1205.05 11.82 Wipro 372.65 479.55 -22.29

BSE MID CAP : TOP 10 GAINERS & LOSERS

BSE MID CAP GAINERS BSE MID CAP LOSERS
Price as on Price as on Price as on Price as on
Company % Change Company % Change
July 21, 2008 June 23, 2008 July 21, 2008 June 23, 2008
Allied Digital 867.65 749.30 15.79 Ashapura Minech. 111.00 181.05 -38.69
Berger Paints 40.00 36.50 9.59 Great Offshore 389.35 582.30 -33.14
BF Utilities 1804.05 1501.90 20.12 Moser Baer (I) 89.80 143.25 -37.31
BGR Energy 320.95 262.75 22.15 Orbit Corporatio 228.75 368.65 -37.95
Geodesic Inform. 174.95 156.10 12.08 Phoenix Mills 114.65 223.40 -48.68
Hind.Oil Explor. 135.35 122.15 10.81 Prakash Inds. 125.45 191.45 -34.47
India Infoline 646.65 562.30 15.00 REI Agro 966.50 1478.25 -34.62
Punjab Tractors 221.85 202.65 9.47 S Kumars Nation 66.80 105.95 -36.95
Shree Renuka Sug 115.45 103.10 11.98 Uni.Brew.(Hold.) 224.55 389.15 -42.30
Spice Commun. 72.75 60.10 21.05 Vishal Retail 393.25 671.85 -41.47

BSE SMALL CAP : TOP 10 GAINERS & LOSERS

BSE SMALL CAP GAINERS BSE SMALL CAP LOSERS
Price as on Price as on Price as on Price as on
Company % Change Company % Change
July 21, 2008 June 23, 2008 July 21, 2008 June 23, 2008
Aarti Inds. 36.95 32.95 12.14 Dhanus Technolog 126.00 264.60 -52.38
Dewan Housing 109.85 90.30 21.65 Indiabulls Retai 72.30 113.00 -36.02
Energy Devlop.Co 120.70 98.20 22.91 KLG Systel 309.65 470.60 -34.20
Ingersoll-Rand 354.20 296.10 19.62 KNR Construction 52.45 81.00 -35.25
Minda Inds. 339.10 300.00 13.03 Lok Housing 50.65 87.95 -42.41
Nectar Lifescn. 308.35 269.95 14.22 Pioneer Invest 110.25 206.90 -46.71
Pennar Inds. 30.75 27.00 13.89 Prajay Engg. 55.60 113.30 -50.93
Rayban Sun Optic 110.70 79.10 39.95 Shardul Sec. 92.15 166.35 -44.60
Selan Expl. Tech 220.95 191.75 15.23 Sparsh BPO 55.75 136.95 -59.29
Zandu Pharma. 21315.60 14782.75 44.19 Vipul Ltd 59.75 96.65 -38.18

S&P CNX NIFTY: TOP 10 GAINERS & LOSERS

NIFTY GAINERS NIFTY LOSERS
Price as on Price as on Price as on Price as on
Company % Change Company % Change
July 21, 2008 June 23, 2008 July 21, 2008 June 23, 2008
BHEL 1506.45 1361.45 10.65 Cairn India 215.90 268.85 -19.69
Cipla 226.45 212.05 6.79 Grasim Inds. 1727.85 2147.45 -19.54
NTPC 181.45 162.05 11.97 HCL Technologies 196.05 270.55 -27.54
ONGC 955.25 887.30 7.66 Idea Cellular 83.85 102.70 -18.35
Power Grid Corp. 91.95 84.40 8.95 Infosys Tech. 1561.80 1847.50 -15.46
Pun. Natl. Bank 460.60 421.30 9.33 SAIL 125.65 147.15 -14.61
Reliance Inds. 2153.30 2022.20 6.48 Satyam Computer 367.10 459.80 -20.16
Siemens 483.40 437.55 10.48 Sterlite Inds. 603.45 737.85 -18.22
St Bk of India 1347.45 1205.05 11.82 Tata Steel 598.50 745.55 -19.72
Tata Comm 403.85 356.90 13.15 Wipro 372.65 479.55 -22.29

4 V Share August, 2008

CAPITAL MARKET: AT A GLANCE

NSE MID CAP: TOP 10 GAINERS & LOSERS

NSE MID CAP GAINERS NSE MID CAP LOSERS
Price as on Price as on Price as on Price as on
Company % Change Company % Change
July 21, 2008 June 23, 2008 July 21, 2008 June 23, 2008
Alfa Laval (I) 799.85 782.95 2.16 BEML Ltd 650.30 875.80 -25.75
Alstom Projects 392.45 372.15 5.45 Gammon India 211.70 278.85 -24.08
Bharat Forge 252.65 236.10 7.01 Jet Airways 387.10 518.25 -25.31
Corporation Bank 270.85 267.70 1.18 Kirl. Brothers 154.85 197.25 -21.50
Glenmark Pharma 661.05 640.35 3.23 Moser Baer (I) 89.80 143.25 -37.31
HPCL 213.70 190.45 12.21 MphasiS Ltd 182.20 235.80 -22.73
ING Vysya Bank 235.60 222.10 6.08 Omaxe Ltd 122.25 155.70 -21.48
Lupin 697.30 679.65 2.60 Parsvnath Develo 112.05 143.80 -22.08
Punj Lloyd 228.35 225.55 1.24 Shree Cement 512.80 676.75 -24.23
Union Bank (I) 122.30 118.20 3.47 Sobha Developers 238.70 329.30 -27.51

NIFTY JUNIOR: TOP 10 GAINERS & LOSERS

NIFTY JR. GAINERS NIFTY JR. LOSERS
Price as on Price as on Price as on Price as on
Company % Change Company % Change
July 21, 2008 June 23, 2008 July 21, 2008 June 23, 2008
Bank of Baroda 230.95 212.20 8.84 Aditya Birla Nuv 1058.55 1241.65 -14.75
Bank of India 272.45 225.30 20.93 Biocon 357.00 440.35 -18.93
Bharat Forge 252.65 236.10 7.01 IFCI 38.85 46.55 -16.54
Container Corpn. 778.40 755.90 2.98 Infra.Devlp.Fin 93.45 116.25 -19.61
I-Flex Solutions 1332.20 1245.70 6.94 JSW Steel 719.50 956.25 -24.76
ING Vysya Bank 235.60 222.10 6.08 Kotak Mah. Bank 476.90 563.50 -15.37
Jaiprakash Assoc 166.55 153.35 8.61 Moser Baer (I) 89.80 143.25 -37.31
Power Fin. Corp. 130.45 108.35 20.40 MphasiS Ltd 182.20 235.80 -22.73
Reliance Capital 1092.30 928.50 17.64 United Spirits 1048.15 1309.75 -19.97
Union Bank (I) 122.30 118.20 3.47 Wockhardt 176.10 213.40 -17.48

FOREIGN INSTITUTIONAL INVESTORS' (FII) ACTIVITY DURING JULY-2008

Equity (Rs. Crore) Debt (Rs. Crore)
Date
Purchase Sale Net Purchase Sale Net
10-Jul-08 1,988.40 2,334.40 -346.00 28.60 31.10 -2.50
11-Jul-08 2,420.10 2,730.40 -310.30 0.00 0.00 0.00
14-Jul-08 2,020.10 2,232.30 -212.20 0.00 0.00 0.00
15-Jul-08 2,370.50 3,050.90 -680.40 46.60 45.00 1.60
16-Jul-08 2,693.00 2,903.50 -210.50 0.00 168.10 -168.10
17-Jul-08 2,939.50 2,403.70 535.80 0.00 0.00 0.00
18-Jul-08 2,988.40 2,399.20 589.20 0.00 0.00 0.00
21-Jul-08 2,031.20 2,143.10 -111.90 44.00 0.00 44.00
TOTAL 39,060.80 40,592.20 -1,531.40 5,166.50 1,476.70 3,689.80

MUTUAL FUND ACTIVITY DURING JULY -2008

Equity (Rs. Crore) Debt (Rs. Crore)
Date
Purchase Sale Net Purchase Sale Net

10-Jul-08 392.70 591.10 -198.40 1,292.50 525.90 766.60

11-Jul-08 900.30 780.40 119.90 1,738.80 1,213.40 525.40
14-Jul-08 341.10 323.40 17.70 1,248.20 1,211.30 36.90
15-Jul-08 422.80 531.00 -108.20 950.70 1,056.80 -106.10
16-Jul-08 467.20 498.60 -31.40 1,117.60 1,080.10 37.50
17-Jul-08 651.30 640.20 11.10 805.70 1,079.20 -273.50
18-Jul-08 671.10 800.90 -129.80 1,178.20 1,024.50 153.70
21-Jul-08 861.20 1,062.10 -200.90 242.90 740.40 -497.50
TOTAL 9,270.60 9,078.20 192.40 15,871.20 11,492.90 4,378.30

V Share August, 2008 5

FUND FACT SHEET
Top Funds Ranked as on July 23, 2008
NAV (Rs.) Return (%)
Since
Rank Scheme Name as on July 1 3 6 1 3
Inception (%)
23, 08 Month Months Months Year Years
Equity Funds
1 Reliance Diversified Power Sector Fund-Growth 55.44 -2.74 -16.79 -19.89 19.10 44.83 50.17
2 Taurus Libra Taxshield 23.54 -3.88 -15.57 -16.29 14.37 8.57 13.80
3 UTI Spread Fund 11.89 0.71 1.99 3.76 8.91 NA 8.67
4 JM Arbitrage Advantage Fund 11.79 0.71 1.99 3.76 8.91 NA 8.52
5 ICICI Prudential Blended Plan 12.80 0.31 1.41 2.60 7.95 8.18 8.17
Debt Fund
1 DBS Chola Monthly Income Plan-Growth 16.57 -1.14 -3.17 6.53 22.56 11.66 10.68
2 Birla Sun Life Dynamic Bond Fund- Retail 13.05 0.83 2.22 4.82 10.87 7.75 7.21
3 ING Income Fund-Regular Plan 20.61 0.62 1.54 1.65 10.84 6.52 8.16
4 Franklin India International Fund 10.45 -0.24 4.74 6.30 10.53 2.77 0.79
5 PRINCIPAL Monthly Income Plan 14.85 -0.62 -1.63 -1.92 9.88 9.88 9.04
Equity (Tax Planning)
1 Taurus Libra Taxsheild 14.37 -3.88 -15.57 -16.29 14.37 8.57 13.80
2 Sundaram BNP Paribas Taxsaver -0.44 -2.33 -13.79 -16.09 -0.44 25.06 17.57
3 DWS Tax Saving Fund -7.42 -7.97 -19.86 -22.15 -7.42 NA 5.39
4 Sahara Taxgain -8.12 -4.67 -17.95 -20.55 -8.11 18.64 28.78
5 Franklin India Index Tax Fund -8.11 -2.31 -15.67 -13.64 -8.11 22.67 17.36
Debt (Short Term)
1 HDFC High Interest Fund 15.42 0.61 1.86 3.99 9.46 7.78 6.94
2 HSBC Income Fund 13.98 0.72 2.30 4.37 8.75 6.90 6.14
3 ING Short Term Income Fund 14.93 0.76 2.12 3.64 8.73 7.77 7.00
4 UTI Short Term Income Fund 13.63 0.70 2.48 3.49 8.33 7.13 6.28
5 JM Short Term Fund 14.92 -0.11 1.21 2.95 8.33 7.10 6.80
Debt (Income)
1 Birla Sun Life Dynamic Bond Fund 13.05 0.83 2.22 4.82 10.87 7.75 7.21
2 ING Income Fund 20.61 0.62 1.54 1.65 10.84 6.52 8.16
3 Franklin India International Fund 10.45 -0.24 4.74 6.30 10.53 2.77 0.79
4 Sahara Income Fund 14.63 0.77 2.20 4.35 9.06 7.09 6.16
5 ICICI Prudential Long Term Plan 17.47 0.81 2.49 4.41 9.02 7.29 9.22
ETF
1 UTI Gold Exchange Traded Fund 1342.58 7.29 12.61 20.54 49.79 NA 24.32
2 Gold BeES 1339.65 7.29 12.60 20.51 49.63 NA 28.81
3 Liquid BeES 1000.00 0.53 1.48 2.98 5.61 5.75 4.60
4 S&P CNX NIFTY UTI National Depository Receipts Scheme 438.51 -2.17 -15.33 -12.81 -6.41 23.97 34.18
5 Nifty BeES 430.20 -2.27 -15.68 -13.25 -6.75 24.38 24.85
Balanced Fund
1 DSP Merrill Lynch Balanced Fund 44.06 -4.12 -10.65 -8.73 -1.16 22.04 17.57
2 Reliance Regular Savings Fund-Balanced 12.79 -3.27 -10.35 -12.70 -1.6 8.32 8.11
3 LIC Balanced-Plan C 47.00 -2.18 -13.83 -18.42 -2.83 15.68 8.64
4 ING Balanced Fund 19.51 -3.03 -12.16 -14.47 -3.44 14.07 8.44
5 PRINCIPAL Balanced Fund 23.07 -3.83 -13.24 -15.28 -4.28 13.48 10.30

Bulk Deals Done by Mutual Funds

Price
Exch. Date Company Client Transaction Qty
Traded Close
BSE 11-Jul-08 Amara Raja Batt Franklyn Temp MF Franklin India High Growth Bought 1120833 132.00 125.05
NSE 9-Jul-08 Puravankara Pro HSBC Global Investment Funds Bought 3101201 191.00 191.00
NSE 4-Jul-08 ING Vysya Bank Fidelity Mutual Fund A/c - Fidelity Equity Fund Sold 965130 196.00 196.00
BSE 4-Jul-08 TVS Motor Kotak Mahindra UK Bought 4754922 25.00 26.15
BSE 4-Jul-08 TVS Motor Fidelity Trustee Co P Ltd Ac Fidelity Equity Fund Sold 3268891 25.00 26.15
BSE 3-Jul-08 Spice Comm HSBC Global Investment Funds Sold 3640000 72.50 72.85
NSE 3-Jul-08 Spice Comm HSBC Global Investment Funds Sold 4259096 72.50 72.85
NSE 2-Jul-08 Brigade Enterp Reliance Capital Trustee Co Ltd Bought 1188000 99.00 106.95
BSE 1-Jul-08 Astra Microwave Reliance Capital Trustee Co Ltd Bought 2872263 36.50 37.40

6 V Share August, 2008

 MUTUAL FUND WATCH
UTI GOLD EXCHANGES TRADED FUND

G
old Exchange Traded Funds are a relatively
Investment Objective
new concept in the Indian mutual fund To endeavour to provide returns that, before expenses,
industry; the first Gold ETF was launched closely track the performance and yield of Gold. However
in February 2007. Being ETFs, these funds the performance of the scheme may differ from that of
the underlying asset due to tracking error. There can be
are listed and traded on the stock exchange i.e.
no assurance or guarantee that the investment objective
investors can buy and sell them like any other stock of UTI-Gold ETF will be achieved.
on the stock exchange, on a real- time basis. Hence,
Gold ETFs offer a rather unique investment Type of Scheme Open Ended
opportunity to investors who wish to invest in gold. Nature ETF
In their short history, Gold ETFs have been quite
Option Growth
successful in capturing investors' fancy. It must be
noted that while ETFs as investment avenues may Latest NAV 1342.58 as on July 22, 2008
not be very popular among investors, it is the Gold Benchmark Index NA
ETFs segment wherein the interest is palpable. The
52 - Week High 1369.28 as on July 15, 2008
fact remains that Gold ETFs are like any other
investment avenues and have their fair share of 52 - Week Low 877.28 as on Aug 1, 2007
pros and cons. This in turn highlights the need for Face Value (Rs/Unit) 1000
investors to properly evaluate the Gold ETF option
Fund Size in Rs. Cr. 174.84 as on June 30,2008
and to ascertain if ETFs fit into their portfolios.
Inception Date 16-Mar-07
NAV Chart

1400

1350

1300

1250

1200
24 -08

25 -08

-Ju 8
27 -08

30 -08

01 08

02 08

03 l-08

04 08

07 08

08 08

09 08

10 08

11 08

14 08

15 08

16 -l 08

17 08

18 08

21 08

22 08

8
26 n-0

-l 0
n-

l-

l-
n

-l

-l

-l

-l

-l

-l

-l

-l

-l

-l

-l
-Ju

-Ju

-Ju

-Ju

-Ju

-Ju

-Ju

-Ju

-Ju

-Ju

-Ju

-Ju

-Ju

-Ju

-Ju

-Ju
-Ju

-Ju

-Ju

-Ju

-Ju
23

Top Holdings
Percentage of
Percentage of Quantity
Stock Sector P/E Value Change with
Net Assets
last month
GOLD - BULLION Metals NA 99.93 1,335 174.72 7.45
Current Assets Current Assets NA 0.07 NA 0.12 -132.65
100

Current
Sector Name

Sector Allocation
Asset

Current Assets 0.07

Metals
Metals 99.93

0 20 40 60 80 100 120
Sector Allocation

V Share August, 2008 7

Regulatory News Corner
SEBI News
Mandatory requirement of Permanent Account Number
(PAN)
SEBI vide circular dated June 30, 2008 has clarified that
Permanent Account Number (PAN) may not be insisted in the
case of Central Government, State Government, and the
officials appointed by the Courts e.g. Official Liquidator, Court
Receiver etc. (under the category of Government) for
transacting in the securities market.
NSE News
Ref. NSE/MEM/10977/July 11, 2008
Grant Of Rights and Privileges to Users created in ENIT.
This is with reference to Exchange Circular No. 568 (Ref.
NSE/MEM/8364) dated January 12, 2007 regarding creation of
ten sub-users in ENIT for different utilities. Members have
been representing to the Exchange that due to the various
enhancements in ENIT, they would prefer to provide limited
rights and privileges to their sub-users accessing ENIT.
The Exchange after taking into consideration the member's
representation has now provided a utility in ENIT that would
enable the main user of the member to provide limited rights
and privileges to their sub-users accessing ENIT.
The path for the same is ENIT>Members Login>Users. Against
each sub-user a link called permissions would be displayed.
On clicking permissions, a screen “Assign Menu Permissions”
wherein all the existing modules in ENIT would be displayed.
The main user would have an option to grant access to
specific or all modules by ticking on the modules. The screens
are attached below in Annexure I for your reference.
(Source: NSE website dated July 11, 2008)
Ref. No. NSE/CMO/034/2008
Direct Market Access Facility
In continuation to Circular nos. NSE/CMO/021/2008 dated
April 03, 2008, regarding 'Direct Market Access (DMA)' trading
BSE News
BSE enters into an agreement with Bank of Baroda for
Clearing and Settlement
Bombay Stock Exchange (BSE), Asia's oldest bourse, today
entered an agreement with Bank of Baroda (BOB) vide, which
BOB becomes a Clearing and Settlement Bank. With the
signing of this new agreement, BSE will now have a tripartite
arrangement with BOI Shareholding Ltd (BOISL) & BOB for
8 V Share August, 2008
It is observed that certain media reports have wrongly
reported the aforesaid provision of the said SEBI circular. It is
hereby clarified that the exemption from mandatory PAN
requirement applies to transactions undertaken on behalf of
the Central and State Government, but not to the
transactions of the employees of Central and State
Government in their personal capacity
(Source: Sebi website dated July 04, 2008)
facility, SEBI has further clarified the password maintenance
and authentication vide letter MRD/DoP/NSE/129791/2008
dated June 24, 2008.
It is clarified that it should be ensured that standard security
procedures as mentioned under 'Operational Specifications'
of the above referred circular are provided for at the client
level including in cases where the clients access the DMA
server of broker through third party service providers. It is also
clarified that the password maintenance and authentication
can be either at the trading member end or by the third party
network service provider, so long as the members ensure that
there is secured access and communication and a sound
audit trail for all DMA orders/trades. The authorized user and
client details should be part of the order details received and
authenticated at the DMA server of the trading member.
The trading members and the DMA clients are required to
have appropriate agreements with the third party service
provider for ensuring secured access and communication.
Trading members, while submitting the application for DMA
with the Exchange are required to confirm compliance of the
above.
(Source: NSE website date July 1, 2008)
clearing and settlement.
Speaking on the occasion, Mr. Rajnikant Patel, Managing
Director & CEO, BSE said, "Bank of Baroda, like BSE is one of
the oldest financial institutions of the country. In recent times,
the Bank has been aggressively working towards providing
the best of technology and more and more innovative
products and services to its customers. The Bank also enjoys a
 Regulatory News Corner
wide network of 2800 branches and a vast database of 33
millions customers. With this new arrangement, we hope to
leverage the Bank's and attract more and more customers of
the Bank to trade through BSE."
Speaking on the occasion Mr. M D Mallya, Chairman and
Managing Director of Bank of Baroda said, "Over the years,
Bank of Baroda has seized new business opportunities, which
are drivers of future growth to enhance shareholder value.
The Bank has emerged as a financial supermarket providing a
vast array of financial products to different customer
segments under one roof. Bank looks at this tie up as a
customer-centric strategy. In its drive towards providing
greater customer convenience, the Bank will continue to
enlarge its basket of products - both its own as also third
party, leveraging its vast branch infrastructure. The tie-up with
Bombay Stock Exchange Ltd. is the latest addition to its vast
basket of products."
(Source: Press Release, June 19, 2008)
BSE/20080721-30/ Monday, July 21, 2008
TRADE TO TRADE SCRIPS INCLUSIONS in 'T' and 'TS'
Groups
As a part of Surveillance review and pursuant to the meeting
with SEBI, the Exchange with a view to take preventive
surveillance measure to ensure market safety and safeguard
the interest of the investors, has decided to take the following
Surveillance actions:
The under mentioned scrips will be included in "T" Group and
they would be traded and settled on Trade to Trade basis w.e.f.
July 25, 2008 and would attract a circuit filter of 5% or lower as
applicable. However, if the scrip/s as on date is/are in No-
Delivery period then such scrip/s will be transferred to “T”
Group on the day after the scrip/s is/are available In-Delivery.
Scrip
Sr. No. Scrip Name
Code
1 532047 Asian Films Production & Distributions Ltd
2 512109 Aviva Industries Ltd.
3 520127 Balurghat Technologies Ltd.
4 531624 Country Condo's Ltd
5 505703 Deccan Bearings Ltd.
6 512068 Deccan Gold Mines Ltd.
7 530389 Geefcee Finance Ltd.
8 532425 Gulshan Chemfill Ltd.
9 531960 Jindal Online.com Ltd.
10 532092 Kirti Finvest Ltd.
11 526143 Milton Plastics Ltd.
12 531456 Minaxi Textiles Ltd.
13 526773 Pressure Sensitive Systems (India) Ltd
14 526009 Procal Electronics India Ltd
15 500365 Remi Metals Gujarat Ltd.
16 524194 Rock Hard Petrochemical Ind. Ltd.
17 532316 S Kumars.com Ltd.
18 512499 Shalimar Productions Ltd.
19 531715 Shukun Construction Ltd.
20 531598 Shyam Software Industries Ltd
21 526506 Systematix Corporate Services Ltd.
22 532262 TCI Industries Ltd.
23 507450 Thiru Arooran Sugars Industries Ltd
24 500439 Vardhman Holdings Ltd
25 519224 William Magor & Company Ltd
Trading Members are requested to take adequate precaution
while trading in above scrips, as the settlement will be done
on trade-to-trade basis and no netting off positions will be
allowed. Further, as per the provisions of Exchange Notice No.
20050805-12 dated 05 August 2005; a VaR Margin of 100% will
also be levied on these scrips.
2) Further, the under-mentioned scrips which are presently
traded under “S” group (i.e. Indonext Segment) are
transferred to trading and settlement on a trade-to-trade in
“TS” group (i.e. Trade-to-trade segment of Indonext) w.e.f. July
25, 2008 and would attract a circuit filter of 5% or lower as
applicable. However, if the scrip/s as on date is/are in No-
Delivery period then such scrip/s will be transferred to “TS”
Group on the day after the scrip/s is/are available In-Delivery.
Scrip
Sr. No. Scrip Name
Code
1 523489 Chennai Meenakshi Multispeciality Hospitals Ltd.
2 514322 Kamadgiri Synthetics Ltd.
3 517258 Precision Electronics Ltd.
4 521178 Sri Ramakrishna Mills (Coimbatore) Ltd.
Trading Members are requested to take adequate precaution
while trading in above scrips, as the settlement will be done
on trade-to-trade basis and no netting off positions will be
allowed. Further, as per the provisions of Exchange Notice No.
20050805-12 dated 05 August 2005; a VaR Margin of 100% will
also be levied on these scrips.
Trading Members should note that the transfer of scrips for
trading and settlement on a trade-to-trade basis is purely on
account of market surveillance measure and it should not be
construed as an adverse action against the company. Further,
this is a temporary measure and will be periodically reviewed
depending on the market conditions.
(Source: BSE website dated July 21, 2008)
V Share August, 2008 9
 Cement Sector Sector Analysis

Changing
the growth Paradigm
> Indian cement industry dates back to 1914 - first unit was set-up at
OVERVIEW Porbandar with a capacity of 1000 tonnes

> Currently India is ranked second in the world with an installed capacity
of 190 million tones in 2007-08.

> The overall cement production rose by 8.11 per cent during 2007-08 to
168.29 million tonnes (mt) as against 155.66 mt in 2006-07.

> Cement grade limestone in the country reported to be 89 bt. A large

proportion however is unexploitable.

> 55 - 60 per cent of the cost of production are government controlled.

> Cement sales primarily through a distribution channel. Bulk sales

account for more than 1 per cent of the total cement produced.

> Ready mix concrete a relatively nascent market in India.

F
or India, the world's second largest producer of poised to add 111 million tonnes (mt) of annual capacity by
cement, the recent boom in infrastructure and the the end of 2009-10 (FY 2010), riding on the back of approxi-
housing market has only boosted its cement mately 141 outstanding cement projects.
industry. Add to that an increasing global demand
According to a report by the ICRA Industry Monitor, the
and a flurry of activity in infrastructure projects highways
installed capacity is expected to increase to 186 mt per
roads, bridges, ports and houses has sparked off a spate of
annum (mtpa) by the end of FY 2008, and 219 mtpa by end of
mergers and acquisitions in the sector. Furthermore, the
FY 2009, and further up to 241 mtpa by FY 2010-end. As a
country's finance minister, P. Chidambaram, has stated that
result, India's cement industry will record an annual growth
India would double spending on infrastructure over the next
at 10 per cent in the coming years with higher domestic
five years to sustain its record economic growth and
demand resulting in increased capacity utilisation.
modernise its infrastructure.
Indian Cement industry added 23 MnTPA (Million Tonne Per
Cement companies are fast developing plants to provide for a
Annum) to its installed capacity in FY 2008 to take it to 189
rapidly expanding economy. The cement industry is therefore

10 V Share August, 2008

 Sector Analysis
Core Strength
(Rs. Cr.)
Equity : 5152.20
Gross Block : 46436.25
Sales : 48576.42
Net Profit : 7685.05
Market Cap : 58001.60
MnTPA, showing a year on year growth of 14 per cent with
utilizations improving to 96 per cent for the same period.
Production grew by just over 8 per cent over the last fiscal to
reach 168 MnTPA. Cement consumption In India registered
an encouraging double digit growth of 10 per cent backed by
a similar growth in the Construction activity. Southern states
of Andhra Pradesh, Karnataka, Kerala & Tamil Nadu
accounted for almost 30 per cent of the All India Domestic
Demand of 164 MnTPA.
However, per capita cement consumption in India is still very
low at around 130 kg against the world average of 260 kg and
China at 450 kg. This underlines the tremendous scope for
growth of the Indian cement industry in the long term.
Domestic Players
While the Cement Corporation of India, a Central public
sector undertaking, comprises 10 units; the various State
governments own 10 large cement plants. Among the leading
domestic players in terms of cement manufacturing are:
Ambuja Cement, Aditya Birla Group (which owns UltraTech
Cement), ACC Ltd., Binani Cement, India Cements and J K
Cement. They are not only the foremost producers of cement
but also enjoy a high level of equity in the market.
Market share of top five players in the industry has increased
from 42 per cent in FY 02 to 56 per cent in FY 07. In FY 07,
Holcim group captured a leadership position with market
share of 22.6 per cent followed by Aditya Vikram Birla group
at 19.4 per cent.
Cement Operations
Cement operations contribute 77 per cent to the revenues of
The demand growth for the current fiscal is expected to be in
the region of 10 per cent, which will translate into a demand of
175 mt. To meet this rising demand, many Indian companies
are going for capacity expansion. Close to 54 mt of additional
capacity is to come up in the next three years, with an
investment of around US$ 5.31 billion.
According to a Deutche Bank report, close to 5.1 mt will be
added by second half of 2007-08, while 11.46 mt will be added
in 2008-09. Around 28.90 mt is likely to be added in 2009-10
and 2.87 mt in 2010-11. A similar projection by National Council
of Applied Economic Research (NCAER) for cement consump-
tion, on a conservative basis, has placed cement demand at 225
mt by the fiscal year 2011. If the Government goes ahead with
infrastructure projects as planned, consumption is likely to be
much higher at 291 mt.
the company. The plants are currently at a single location in
Dalmiapuram, District Trichy in Tamil Nadu, which falls in the
southern region of India where cement demand in last one
year has grown 10 per cent year on year, which is at almost
the same rate as the country.
The Company services the southern states of Tamil Nadu,
Kerala and Karnataka. Revenue contribution from Tamil Nadu
in FY 2008 is 60 per cent while Kerala and Karnataka contrib-
ute 27 per cent and 9 per cent respectively. Balance 4%
contribution is from other areas.
There has been a notable growth in capacity utilization of
cement business which has increased from 78 per cent in FY
2007 to 94 per cent in FY 2008. This is on account of brown
field expansion of 2 MnTPA that was undertaken in FY 2007
which yielded the benefit of enhanced operations for the
entire year. The company with its continued zest to improve
efficiency and benefit from economies of scale worked
ceaselessly to optimise cost. While efficiency was reflected in
better performance in terms of cement and clinker produc-
tion and capacity utilizations, margins improved with higher
realizations and better cost management.
The installed capacity of the company stands at 3.5 MnTPA
at its Dalmiapuram plant. In order to take advantage of the
growing domestic demand for cement, two new cement
plants at Cuddapah (Andhra Pradesh) and Ariyalur (Tamil
Nadu) of 2.25 MnTPA each are being set up. The commission-
ing of these will take the installed capacity of the company to
8 MnTPA, an increase of 129 per cent. To expand its footprint
in Southern region Rs 1,550 crore of capital expenditure has
been outlined in these two upcoming cement plants. The
Greenfield project at Cuddapah in Andhra Pradesh is
V Share August, 2008 11

expectЂ d to be commissioned in second half of CY 2008 and
the one in Ariyalur (Tamil Nadu) will be operational within
first half of CY 2009.
To mitigate the increase in energy costs, the company uses
its wind mills with 16 MW capacity at Muppandal in Tamil
Nadu. This ensures generation of inexpensive and eco-
friendly captive power supply to its plant through the State
grid route. Existing thermal power capacity of Dalmia is
27MW which in near term would increase to 45 MW this year.
The viability of locations plays a pivotal role in the economics
of cement manufacturing. It is determined by certain factors
such as proximity to raw material, availability of continuous
power supply and distance to market. With plants located in
close proximity to the raw material, the freight and transpor-
tation costs are also kept at lower level resulting in higher
productivity and better net realizations.
The Company continued to enjoy goodwill in its market
place and its brands such as Dalmia Superroof and Vajram
continued to be preferred products and commanded
premium over other products in the market. The most
prominent aspect of company's market is its significant
presence in infrastructure applications which includes
cement used for constructing airstrips, oil wells and railway
sleepers. The Company's oil well cement is the first cement
in the country to receive the prestigious American
Petroleum Institute (API) certification. It is used for cement-
ing the walls of on-shore and off-shore oil wells of ONGC,
Reliance and other oil exploration companies.
A Growing Demand
The Cement industry has continued its growth trajectory
over the past seven years. Domestic cement demand
growth has surpassed the economic growth rate of the
country for the past couple of years. The growth rate of
cement demand over the past five years at 8.37 per cent was
higher than the rate of growth of supply at 4.84 per cent as
also the rate of growth of capacity addition during the same
period. Demand for cement in the country is expected to
continue its buoyant ride on the back of robust economic
growth and infrastructure development in the country (see
the table 1).
The key drivers for cement demand are real estate sector,
infrastructure projects and industrial expansion projects.
Among these, real estate sector is the key driver and
accounted for almost 55 per cent in FY 07.
During the period FY 03 - 07, capacity additions in the
country (30.6 mn tonnes) were at a slower rate compared to
demand growth leading to higher average capacity utiliza-
tion rates from 81.3 per cent to 93.8 per cent during the
same period. This has exerted pressure on average prices
which have increased from Rs. 156 per bag in FY 03 to Rs. 216
per bag in FY 07. In December 2007, prices stood at Rs. 245 -
Rs. 250 per bag.
12 V Share August, 2008
Sector Analysis
Industrial production
The cement industry is enhancing its production levels as
new homes and offices are being built, and in keeping with
the economy's annual growth rate. According to the Cement
Manufacturers Association, the overall cement production
rose by 8.11 per cent during 2007-08 to 168.29 million tonnes
(mt) as against 155.66 mt in 2006-07.
In fact, the 16.37 mt produced by the domestic cement
industry in March 2008 has been the highest ever by the
industry in a single month.
! Cement production of ACC increased 5.58 per cent to
1.89 mt in March against 1.79 mt in the same period last
year. Dispatches rose 4.91 per cent to 1.92 mt (1.83 mt)
! Ambuja Cements, another Holcim group company,
reported 23 per cent rise in production to 1.77 mt (1.43
mt) in March, while dispatches were up 16 per cent to
1.72 mt (1.47 mt).
! The Aditya Birla group's production went up 4.8 per cent
during 2007-08 to 30.6 mt (29.24 mt), while dispatches
increased 4.5 per cent to 30.55 mt (29.2 mt).
! India Cements recorded a 46 per cent growth in sales
and posted a 99 per cent growth profit in the nine
months ending December 2007.
Table 1: Regional pattern of growth in cement demand
during the year 2007-08.
Zone Up by
North 10.44 %
East 5.87 %
South 12.90 %
West 9.10 %
Central 8.90 %
Overall 9.90 %
The growth in cement production has continued on the back
of robust demand levels in 200809. According to the Cement
Manufacturers Association of India, cement production grew
by 15.02 mt in April 2008, registering a growth of 7.13 per cent
as compared to 14.02 mt in April 2007.
Installed capacity
With almost every player in the industry going for capacity
addition, ranging from 0.2 mt to 3 mt, the year 2007-08 saw a
record addition of 22 mt. Consequently, the total production
capacity of the Indian cement industry has increased to 190
mt at the end of 2007-08, against 167 mt at the end of 2006-
07, a growth rate of 13-14 per cent.
Further, with a capacity addition of 0.45 mt by Vasvadatta
Cement in April 2008, the installed capacity of the cement
industry (large plants) has increased to 196.22 mt as on April
30, 2008.
 Sector Analysis
Simultaneously, with almost total capacity utilization levels in Strong demand led to a 17 per cent rise in prices to Rs 258 a
the industry, cement dispatches continued to maintain its 10 50 kg bag in 2007-08. The price rise is basically due to higher
per cent growth rate. Total despatches grew to 170 mt during raw material cost. Coal prices have gone up almost 100 per
2007-08, as against 155 mt in 2006-07. Region-wise, western cent in the last one year, while that of other raw materials
region grew fastest with a growth rate of 15 per cent, were up 30-35 per cent (see the figure 1).
followed by northern region (12 per cent) and southern region
Global Players
(10 percent).
The world cement industry is a complex structure of local,
The continuous increase in the infrastructure projects along
national, regional and global markets and cement/clinker
with the rise in construction activity has ensured rising
movements. The structure is ever changing, being closely tied
demand levels for the cement industry. Consequently,
to changes in a range of variables including macro-economic
cement despatches (including exports) have increased by
growth, housing sector booms, public spending levels, trade
6.05 per cent to 14.72 mt in April 2008 against 13.88 mt in
protectionism, and transportation costs. With a relatively
April 2007.
small number of multinational companies dominating
Cement companies have added an additional capacity of 17 cement capacity in many markets throughout the world, the
million tonnes (mt) in fiscal 2008, as against six million tonnes cement sector has become even more globalised in recent
the previous year. In April 2007, the industry announced a years. With increasing multinational presence in growing
capacity addition of 100 mt over the next three years. Chinese, Indian, Middle East and Latin American markets, the
Production for the year ended March 31, 2008 has increased structure of world trade in cement and clinker continues to
7.09 per cent to 166 mt. be dynamic, with the dramatic changes in shipping costs
adding a further layer of complexity to trading patterns. The
Table 2: Additions in FY09
Capacity loop (in million tones)
next 15 years are set to witness further extensive change in
Date of cement supply / demand patterns, as different
Exis- Add- regions/countries enjoy very different development profiles.
Company Area Commi- Total
ting ed
ssioning
Ultra Tech Andhra Pradesh March '08 17.00 3.30 20.30 Domestic Cement industry is highly insulated from global
Grasim Rajasthan March '08 14.00 3.30 17.30 cement markets. Exports have been constant at about 6 per
Shree Cem Rajasthan March '08 7.30 1.00 8.30 cent of total cement demand for past few years. With GoI
Madras Cem Andhra Pradesh Jan '08 6.00 2.00 8.00 intervention, making cement duty free, cement is being
My Home imported from neighbouring countries. However, due to
Industries Andhra Pradesh April '07 1.56 1.20 2.76
logistics issues and lack of port handling capabilities, imports
Vasvadatta
Cements Karnataka April '07 2.00 1.65 3.65
of cement will remain negligible and do not pose a threat to
domestic industry.

Among the major projects expected to go on stream by
September this year include that of Grasim and Madras
Cements. Grasim has planned a 4 mt-a-year green field unit in
Rajasthan and Madras Cements intends to enhance capacity
by 2 mt through a greenfield expansion at Ariyalur in Tamil
Nadu.
Figure 1: Indian Cement Industry
Rapid urbanisation and the booming infrastructure have lead
to an increase in construction and development across India,
attracting even the global players. The recent years have
witnessed a surge of foreign direct investment in the cement
sector. International players like France's Lafarge, Holcim
from Switzerland, Italy's Italcementi and Germany's
Heidelberg Cements hold more than a quarter pie of the total
capacity.

! Holcim, one of the world's leading suppliers of cement,

96.0%
94.0% has 24 plants in the country and enjoys a market share
81.4%
84.3% 79.1% of about 23-25 per cent. It will further invest about US$
2.49 billion in the next five years to set up plants and
raise capacity by 25 mt in the country. Holcim has a
189

168
166
160

global sale worth about US$ 20 billion, where India

155
151

142
144

128

contributes US$ 22.5 billion.

118

! Italcementi Group, the fifth largest producer of cement

(Mn T) in the world acquired full stake in the K.K. Birla pro-
2004 2005 2006 2007 2008
moted Zuari Industries' cement, to strengthen its
presence in India lining up US$ 300 million investment to
Capacity Production Utilization %
increase the capacity of Zuari Industries from 1.7 mtpa
Source: CMA Estimates
to about 6-7 mtpa. Moreover, it plans to invest US$ 174

V Share August, 2008 13


million over the next two years in various greenfield and
acquisition projects.
! The French cement major, Lafarge, acquired the cement
plants of Raymond and Tisco with an installed capacity
of 6 mtpa. It plans to double its capacity to 12 mt over
the next five years by adopting the greenfield expansion
route.
! Heidelberg Cement has entered into an equal joint-
venture agreement with S P Lohia Group controlled
Indo-Rama Cement. It aims at a 50 per cent controlling
stake in Indo-Rama's grinding plant of 0.75 mtpa at
Raigad in Maharashtra. Heidelberg is also taking over
Mysore Cement of S K Birla group at a consideration of
US$ 93 million.
Mergers and Acquistions (M&As)
A growing and robust economy was noteworthy in terms of
the total number of mergers and acquisitions (M&A) in India
2007, with the cement sector contributing to 7 per cent to the
total deal value. Increased activity in infrastructure and a
booming real estate market have seen foreign firms vying to
acquire a share of the pie.
! Holcim strengthened its position in India by increasing
its holding in Ambuja Cement form 22 per cent to 56 per
cent through various open market transactions with an
open offer for a total investment of US$ 1.8 billion.
Moreover it also increased its stake in ACC Cement with
US $ 486 million, being the single largest acquirer in the
cement sector.
! Leading foreign funds like Fidelity, ABN Amro, HSBC,
Nomura Asset Management Fund and Emerging Market
Fund have together bought around 7.5 per cent in
India's third-largest cement firm India Cements (ICL) for
US$ 148.19 million.
! Cimpor the Portugese cement maker paid US$ 75.76
million for Grasim Industries' 53.63 per cent stake in
Shree Digvijay Cement.
! The French cement major, Lafarge, has acquired the
cement plants of Raymond and Tisco in the recent past,
and currently has an installed capacity of 6 mtpa. It
plans to double its capacity to 12 mt over the next five
years by adopting the greenfield expansion route.
! Italy based Italcementi has acquired a stake in the K.K.
Birla promoted Zuari Industries' cement plant in Andhra
Pradesh, with a capacity of 3.4 mtpa.
! Heidelberg Cement has entered into an equal joint-
venture agreement with S P Lohia Group controlled
Indo-Rama Cement. Heidelberg Cement is expected to
take a 50 per cent controlling stake in Indo-Rama's
grinding plant of 0.75 mtpa at Raigad in Maharashtra.
Heidelberg is also taking over Mysore Cement of S K
14 V Share August, 2008
Sector Analysis
Birla group at a consideration of US$ 93 million.
Some of the other major mergers and acquisitions in the
recent past include CRH acquiring My Home Industries for
US$ 462 million, Lafarge buying L&T Concrete's ready-mix
concrete (RMC) business for US$ 349 million and Heidelberg
consolidating its business with Mysore Cement and
Indorama, and Italcementi acquiring 100 per cent stake in
Zuari Cement and 95 per cent stake in Shree Vishnu among
others.
Demand Projection
Given the sustained growth in the housing sector, the
Government's emphasis on infrastructure (at both the
national and the state level) and increased global demand,
the outlook for India's cement industry is exceedingly bright.
The demand growth for the current fiscal is expected to be in
the region of 10 per cent, which will translate into a demand
of 175 mt. To meet this rising demand, many Indian compa-
nies are going for capacity expansion. Close to 54 mt of
additional capacity is to come up in the next three years, with
an investment of around US$ 5.31 billion.
According to a Deutche Bank report, close to 5.1 mt will be
added by second half of 2007-08, while 11.46 mt will be
added in 2008-09. Around 28.90 mt is likely to be added in
2009-10 and 2.87 mt in 2010-11. A similar projection by
National Council of Applied Economic Research (NCAER) for
cement consumption, on a conservative basis, has placed
cement demand at 225 mt by the fiscal year 2011. If the
Government goes ahead with infrastructure projects as
planned, consumption is likely to be much higher at 291 mt.
Government Initiatives
Government initiatives in the infrastructure sector, coupled
with the housing sector boom and urban development, will
continue being the main drivers of growth for the Indian
cement industry. Moreover, the Union Budget for 2008-09 has
sought measures to increase availability and reduce prices.
! Increased infrastructure spending has been a key focus
area over the last five years indicating good times ahead
for cement manufacturers.
! The government has increased budgetary allocation for
roads under NHDP. This coupled with government's
initiatives on the infrastructure and housing sector
fronts would continue to remain the key drivers.
! Appointing a coal regulator is looked upon as a positive
move as it will facilitate timely and proper allocation of
coal (a key raw material) blocks to the core sectors,
cement being one of them.
! Other budget measures such as cut in import duty from
12.5 per cent to nil, removal of 16 per cent countervail-
ing duty, 4 per cent additional customs duty on portland
cement and differential excise duty are all intended to
cut costs and boost availability.
 Sector Analysis

To summarise in the words of an industry analyst, 'The
allocation of US$ 3.23 billion for the National Highway
Development Project will keep the demand for cement alive.'
Outlook
Realty will continue to play a major role as the development of
commercial space including malls, hotels, SEZs will go on full
swing. Residential realty has seen a slight moderation in
demand as the cost and availability of retail finance has
adversely impacted its growth. This slowdown is momentary.
Recommended pay hike of government employees by the
Sixth Pay Commission and the otherwise rising prosperity of
the Indian middle class segment with improved economic
conditions will drive the growth momentum of the retail realty
sector.
Going forward, dedicated rail freight corridor, rapid expansion
of airport network to cover tier II & III cities, ongoing up-
gradation of important ports and airports, slew of capacity
expansion in steel, power and other manufacturing sectors
and 2010 Commonwealth Games to be held in Delhi will all
continue to augment the growth momentum in key infrastruc-
ture areas. The country is likely to double its infrastructure
spending over the next five years towards creating and
modernizing its infrastructure and sustaining its growth
momentum.
In light of above and based on the last 3 year CAGR of 10 per
cent in cement demand, the Company estimates that the
industry shall continue to see double digit demand growth.
The Cement Manufacturers Association estimates addition of
over 75 MnTPA capacity spread across India, in next two
years. This would take the country's cement capacity to over
260 MnTPA, to meet its rising demand growth. The Company
would endeavour to maintain its market share in its core
geographies and expand network in its new market, State of
Andhra Pradesh.

APPRECIATING VLUE

Inviting Articles
Respected Readers,

ISE Research is on the way of transformation; its goal is set to become a center part
of Indian Capital Market Education Point. To achieve such goals, the research
department is trying to increase public involvement by inviting articles from our
valuable readers who is interested to give active support to contemporary Indian
Financial system.

This would be certainly a very good opportunity to publish your research efforts through
'V Share' magazine. Articles may be in your area but issues having a bearing on the
securities market in India are welcome. Kindly e-mail brief articles of about 800 words
(size 11 points-Times New Roman) at research@iseindia.com.

With warm regards

Editor
"V Share"
Research & Strategic Planning Division
Inter-connected Stock Exchange of India Limited

V Share August, 2008 15

 ISE Sectoral Dashboard
ISE SECTORAL DASHBOARD Financial data presented on Indian Cement Sector

INDIAN CEMENT SECTOR: FINANCIAL OVERVIEW INDIAN CEMENT SECTOR: FINANCIAL OVERVIEW

Capital Market Overview Financial Overview Latest quarter Performance

Company Year BSE
NSE Code
Name End Code Price as on 52 week 52 week Mkt. Cap Equity B.V Gr. Blk Sales NP Sales NP NP
Beta PE EPS P/C P/BV NP Var% Dividend % CPS Qtr Yr
July 16, 08 High Low (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) Var%

All Companies 4541026.71 321684.04 2032523.47 3515116.76 308189.31 756087.14 67700.41

Manufacturing 2172408.78 160010.16 1083889.04 1938547.75 134760.77 488516.94 33080.21

Cement&Cement Pro. 58001.60 5152.20 46436.25 48576.42 7685.05 12834.38 1981.61

Cement Products 7.03 925.04 101.72 1466.56 2792.19 124.79 540.58 20.59

Everest Inds. 200803 508906 EVERESTIND 100.50 157.00 81.00 0.8197 20.10 5.20 8.90 1.09 154.44 14.80 95.50 178.35 285.14 7.68 -34.00 40.00 11.70 200803 78.53 0.34 -87.00

Hyd.Industries 200803 509675 HYDRBADIND 137.70 337.00 126.00 0.6787 7.60 18.60 4.20 0.73 106.11 7.47 194.90 229.86 482.71 13.89 -14.00 50.00 33.50 200803 131.74 2.87 -3.00

Indian Hume Pipe 200803 504741 INDIANHUME 454.25 1471.00 355.00 0.7489 17.90 31.00 14.10 1.87 269.47 4.85 297.80 69.40 385.96 15.02 -5.00 70.00 39.30 200803 143.35 6.33 26.00

Ramco Inds. 200703 532369 RAMCOIND 635.00 1699.00 543.00 0.7109 13.20 53.60 6.00 1.36 306.20 4.33 519.80 308.69 349.82 24.18 -27.00 150.00 117.80 200712 77.27 3.68 30.00

Stresscrete (I) 200703 531444 17.70 38.00 16.00 NA 0.00 0.00 0.00 2.73 12.99 7.40 6.60 7.76 3.37 -2.19 0.00 0.00 0.00 200709 0.90 -0.38 62.00

Visaka Inds. 200803 509055 VISAKAIND 56.05 118.00 44.00 0.5851 7.70 6.20 3.00 0.48 75.83 15.88 100.30 250.31 433.13 9.89 -58.00 30.00 16.10 200803 107.61 3.78 -41.00

Cement 55449.47 4584.95 40651.75 40873.98 7340.85 11290.12 1912.78

Cement-Maj-North 7.19 39158.60 2500.26 26147.87 28715.87 5432.63 8034.63 1353.17

ACC 200712 500410 ACC 514.40 1315.00 566.00 0.7323 8.90 64.90 7.10 2.62 10870.56 187.65 221.30 5464.07 6878.00 1280.98 17.00 200.00 81.10 200803 1766.34 330.41 -3.00

Ambuja Cem. 200712 500425 AMBUJACEM 81.30 161.00 79.00 0.48 11.30 7.20 9.30 2.65 12370.31 304.50 30.60 5231.05 5671.39 1182.67 21.00 175.00 8.70 200803 1654.85 330.18 -15.00

Birla Corp. 200803 500335 BIRLAJUTE 159.45 386.00 162.00 1.0471 3.40 51.10 3.10 1.33 1327.65 77.01 129.40 1154.35 1724.78 393.57 21.00 40.00 56.50 200803 488.69 86.56 -14.00

Burnpur Cement 200803 532931 BURNPUR 15.55 56.00 17.00 1.0864 0.00 0.30 0.00 1.34 74.80 42.99 12.70 20.48 27.03 1.42 25.00 0.00 0.50 0.00 0.36 0.00

Guj. Sidhee Cem. 200803 518029 GUJSIDHCEM 22.55 45.00 15.00 0.7221 10.30 2.60 8.10 -135.00 389.03 144.62 -0.20 215.76 394.24 37.93 -28.00 0.00 3.30 200803 121.86 14.88 -52.00

J K Cements Ltd 200803 532644 JKCEMENT 123.40 257.00 123.00 0.6416 3.60 37.90 3.10 1.27 962.24 69.93 109.00 1029.42 1458.30 265.20 48.00 50.00 43.80 200803 385.60 59.80 -3.00

JK Lakshmi 200803 500380 JKLAKSHMI 79.75 221.00 87.00 1.0131 2.20 39.60 1.80 0.86 542.97 61.18 103.70 1340.52 1107.66 242.47 38.00 25.00 49.20 200803 291.35 67.63 11.00

Mangalam Cement 200803 502157 MANGLMCEM 93.95 243.00 102.00 0.8617 2.80 39.40 2.40 1.42 306.65 28.25 76.70 446.78 509.88 113.57 35.00 50.00 45.60 200803 124.82 34.12 59.00

Mysore Cement 200712 500292 MYSORECEM 29.00 70.00 29.00 0.9321 4.10 7.10 3.70 1.41 462.21 158.02 20.50 682.78 593.82 111.79 0.00 0.00 8.00 200803 181.46 37.21 17.00

Prism Cement 200706 500338 PRISMCEM 33.05 80.00 32.00 0.8818 5.40 6.30 4.60 2.46 1015.54 298.25 13.80 647.05 766.45 192.66 210.00 10.00 7.40 200803 228.66 64.36 16.00

Sanghi Inds. 200803 526521 SANGHIIND 55.90 107.00 53.00 0.5115 11.60 4.80 6.70 2.06 1229.69 219.98 27.20 1531.53 846.49 105.50 -26.00 0.00 8.40 200803 245.12 37.03 -44.00

Saurashtra Cem. 200706 502175 SAURASHCEM 31.90 79.00 25.00 NA 4.80 6.20 3.00 3.05 150.75 51.19 9.50 407.06 407.40 31.72 0.00 0.00 9.70 200803 160.20 9.16 25.00

Sh. Digvijay Cem 200803 502180 SHREDIGCEM 13.50 45.00 15.00 NA 6.70 2.40 5.70 1.58 227.61 141.37 10.10 180.36 254.08 33.72 -37.00 0.00 2.80 200803 76.96 -40.41 0.00

Shree Cement 200803 500387 SHREECEM 500.90 1695.00 577.00 0.5583 7.80 79.10 2.90 3.21 2156.94 34.84 193.10 1657.34 2065.87 275.62 56.00 80.00 216.50 200803 650.07 41.07 999.00

UltraTech Cem. 200803 532538 ULTRACEMCO 530.20 1165.00 542.00 0.7592 7.10 80.10 5.70 2.62 7071.65 124.49 216.60 4972.60 5512.43 1007.54 29.00 50.00 99.10 200803 1601.66 282.88 22.00

Cement-Maj-South 8.77 13243.35 584.55 9103.24 7438.73 1482.69 2296.12 412.01

Andhra Cements 200709 532141 ANDHRACEM 530.20 60.00 19.00 0.7592 6.70 3.10 6.60 1.69 259.88 125.85 12.40 324.85 270.72 38.41 0.00 0.00 3.10 200712 89.75 18.21 467.00

Bagalkot Udyog 200706 502125 23.90 27.00 11.00 NA 0.00 0.00 0.00 -5.71 206.74 8.65 -4.20 66.80 4.37 -3.22 0.00 0.00 0.00 200803 0.00 -0.09 95.00

Chettinad Cement 200803 590001 CHETTINAD 501.60 524.00 345.00 0.146 9.00 55.50 6.00 3.75 1472.05 29.50 133.00 824.24 930.18 163.77 43.00 100.00 83.10 200803 257.79 36.43 35.00

Dalmia Cement 200803 500097 DALMIACEM 208.00 620.00 240.00 0.6796 5.80 42.90 4.60 1.87 2013.17 16.17 132.90 1697.08 1480.67 347.15 171.00 200.00 53.60 200803 414.53 70.00 13.00

India Cements 200703 530005 INDIACEM 127.10 333.00 142.00 1.0629 9.20 15.90 7.20 2.05 4133.77 281.88 71.70 3856.04 2255.21 472.70 999.00 10.00 20.30 200712 737.85 127.05 59.00

16 V Share August, 2008 Easier Access Wider Reach V Share August, 2008 17
 ISE Sectoral Dashboard ISE Sectoral Dashboard

Capital Market Overview Financial Overview Latest quarter Performance

Company Year BSE
NSE Code
Name End Code Price as on 52 week 52 week Mkt. Cap Equity B.V Gr. Blk Sales NP Sales NP NP
Beta PE EPS P/C P/BV NP Var% Dividend % CPS Qtr Yr
July 16, 08 High Low (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) Var%

KCP 200703 590066 KCP 242.30 889.00 291.00 1.2237 8.80 36.00 7.80 2.87 409.39 12.89 110.70 209.70 249.99 48.26 177.00 100.00 40.80 200712 91.20 19.31 47.00

Madras Cement 200703 500260 MADRASCEM 2460.75 5040.00 2301.00 0.6723 11.10 254.90 9.00 5.07 3379.06 11.90 559.80 1798.98 1573.51 307.95 287.00 250.00 315.30 200712 512.38 110.65 62.00

Rain Commodities 200712 500339 RAINCOM 170.25 309.00 125.00 2.0207 15.50 12.30 13.50 3.00 1369.29 72.03 63.40 205.66 462.07 69.55 0.00 37.00 14.10 200803 192.62 30.45 0.00

Cement-Min-North 5.63 1865.67 1144.38 3918.56 2964.49 265.28 617.28 99.56

Barak Valley 200803 532916 BVCL 31.75 75.00 27.00 0.7704 6.10 5.00 4.30 0.91 67.14 22.16 33.00 58.97 70.31 11.00 -23.00 20.00 7.10 200803 19.25 3.76 0.00

Binani Cement 200803 532849 BINANICEM 48.60 130.00 53.00 0.777 6.50 8.40 4.90 2.67 1116.03 203.10 20.60 1445.39 961.60 178.81 85.00 25.00 11.10 200803 336.00 64.13 152.00

OCL India 200803 502165 OCL 96.35 384.00 100.00 0.9605 5.20 20.10 4.20 1.08 594.61 11.38 97.20 746.18 764.41 114.61 56.00 125.00 24.80 200803 250.54 32.97 56.00

Sainik Finance 200803 530265 7.33 24.00 8.00 NA 5.70 1.50 4.60 0.40 9.27 10.88 22.50 9.06 12.72 1.68 39.00 0.00 1.90 200803 3.13 0.31 343.00

Vinay Cements 200703 518051 41.35 55.00 16.00 NA 9.90 4.20 7.60 1.09 78.62 18.90 38.40 47.91 43.15 7.93 56.00 0.00 5.50 200712 7.23 0.43 -59.00

Cement-Min-South 5.98 1181.85 355.76 1482.08 1754.89 160.25 342.09 48.04

Anjani Portland 200803 518091 28.70 74.00 25.00 NA 3.30 8.90 2.80 1.17 53.70 18.39 24.80 55.08 103.07 16.31 30.00 15.00 10.60 200803 34.40 2.59 -34.00

Ckoramaandel 200709 518017 57.05 66.00 10.00 NA 18.90 3.50 16.70 6.41 147.61 22.28 10.30 40.98 73.41 11.86 769.00 0.00 4.00 200803 17.53 3.93 424.00

Deccan Cements 200803 502137 DECCANCE 200.95 464.00 153.00 0.9724 3.10 68.50 2.80 1.08 150.54 7.00 199.00 127.16 209.21 47.97 69.00 30.00 76.80 200803 53.28 10.93 37.00

Kakatiya Cements 200803 500234 KAKATCEM 74.50 142.00 64.00 0.7493 3.90 20.10 2.60 0.58 60.22 7.77 134.10 171.82 164.52 15.63 -13.00 0.00 30.20 200803 53.60 7.61 -9.00

NCL Inds. 200803 502168 NCLIND 35.75 94.00 35.00 0.7932 4.30 9.00 3.10 1.27 127.62 33.02 30.80 183.97 192.73 29.57 7.00 25.00 12.30 200803 66.98 8.95 15.00

Sagar Cements 200803 502090 SAGCEM 335.60 460.00 126.00 0.4809 16.60 22.10 14.60 4.65 512.54 14.00 78.70 84.16 223.14 30.96 12.00 25.00 25.10 200803 61.47 6.00 1.00

Shiva Cement 200803 532323 8.01 24.00 8.00 NA 0.00 0.40 0.00 1.74 120.66 29.25 4.60 66.54 31.64 6.08 0.00 0.00 0.60 200803 9.16 0.93 0.00

Shri Keshav 200803 530977 15.50 35.00 15.00 NA 10.30 1.70 5.90 1.37 8.96 5.12 13.10 11.23 15.75 0.86 121.00 0.00 3.00 200803 5.87 0.32 0.00

Explanatory Notes

NP Net Profit. Often referred to as the bottom line, net profit is calculated by subtracting a company's total expenses from 52 W-L 52 weeks Low. It represents the lowest point attained by a share during the immediately preceding 52 weeks.
total revenue, thus showing what the company has earned (or lost) in a given period of time (usually one year).

Mkt.cap Market capitalization is the number of common shares multiplied by the current price of those shares. The term
NP % Net Profit variation calculated on an Yearly,quarterly and trailing 12 months basis. capitalization is sometimes used as a synonym for market capitalization; more often, it denotes the total amount of funds
used to finance a firm's balance sheet and is calculated as market capitalization plus debt (book or market value) plus
preferred stock.
B.V Book Value is the shareholders' equity of a business (assets - liabilities) as measured by the accounting 'books'.

P/C Price-To-Cash-Flow Ratio.A measure of the market's expectations of a firm's future financial health. Since this measure
deals with cash flow, the effects of depreciation and other non-cash factors are removed. Similar to the price-earnings
CPS Cash Flow Per Share.Many analysts, as well as some of the greatest investors of all time, place more weight on cash flow
ratio, this measure provides an indication of relative value.
per share than earnings per share. Because EPS is more easily manipulated, its reliability can at times be questionable.
Cash, on the other hand, is difficult - if not impossible - to fake. You either have cash or you don't. Therefore, cash flow per
share is a useful measure for the strength of a firm and the sustainability of its business model.
P/E Price to Earnings Ratio. It has been arrived at by dividing the day's closing price of a scrip by its earning per share
(EPS).
EPS Earnings Per Share EPS is net profit calculated on a trailing 12 months basis (aggregate net profit of four consecutive
quarters) divided by fully diluted equity capital.
P/BV Price-to-book ratio or P/B ratio, is a ratio used to compare a stock's market value to its book value. It is calculated by
dividing the current closing price of the stock by the latest quarter's book value.
52 W-H 52 weeks High. It represents the highest point attained by a share during the immediately preceding 52 weeks.

18 V Share August, 2008 Easier Access Wider Reach V Share August, 2008 19
 STOCK PERFORMANCE INDICATORS
T
he Indian cement industry is on a
roll. Driven by a booming housing
sector, global demand and
increased activity in infrastructure
development such as state and national
highways, the cement industry has
outpaced itself, ramping up production
capacity, attracting the top cement
companies in the world, and sparking off a
spate of mergers and acquisitions to spur
growth. The recent boom in the housing
and construction industry in India has
worked wonders for cement
manufacturing companies with capacity
utilisation crossing the 100 per cent mark
for the first time in January 2007. The
booming demand for cement, both in India
and abroad, has attracted global majors to
India. In 2005-06, four of the top-5 cement
companies in the world entered India
through mergers, acquisitions, joint
ventures or greenfield projects. Given the
sustained growth in the housing sector,
the Government's emphasis on
infrastructure (at both the national and the
state level) and increased global demand,
the outlook for India's cement industry is
exceedingly bright.
An analysis is done to understand the
stock performance of various cement
producing companies based on different
parameters viz. market cap, monthly
volatility, R square and annual return.
Volatility most frequently refers to the
standard deviation of the change in value
of financial instrument with a specific time
horizon. It is often used to quantify the risk
of the instrument over the time period.
Cement stocks are comparatively more
volatile moving with the range of 0.50 to
7.00. Among all 30 major cement
companies Everest Inds. is high volatile
stock with 6.79 per cent volatility. Beta
measures the risk associated with stocks,
in 30 different stocks, Rain Commodities
has the highest beta of 1.736 and
Chettinad Cements has the lowest beta of
0.116. R Square indicates the strength of
relationship between two variables (the
return on cement sector and BSE
Sensex). A high R Square (between 85 to
100) indicates that the stock performance
pattern have been in line with the index
but many stocks from this sector have
comparatively high R Square that shows
good consistency in return with Sensex.

Mkt Capt. Average daily 1 Year Return

Sl No. Company BSE Code Weightage Beta R Square (%)
(Rs. Cr.) Volatility (%) (%)
1 Ambuja Cem. 500425 12370.31 22.26 0.476 3.89 0.75 -40.09
2 ACC 500410 10870.56 19.56 0.738 3.89 0.55 -52.42
3 UltraTech Cem. 532538 7071.65 12.72 0.764 2.56 0.68 -45.84
4 India Cements 530005 4133.77 7.44 1.054 4.38 0.74 -39.69
5 Madras Cement 500260 3379.06 6.08 0.667 2.85 0.34 -28.61
6 Shree Cement 500387 2156.94 3.88 0.553 3.22 0.27 -64.36
7 Dalmia Cement 500097 2013.17 3.62 0.667 2.93 0.54 -42.95
8 Chettinad Cement 590001 1472.05 2.65 0.116 0.54 -0.05 10.93
9 Rain Commodities 500339 1369.29 2.46 1.736 3.16 0.63 12.02
10 Birla Corp. 500335 1327.65 2.39 1.033 2.08 0.77 -45.99
11 Sanghi Inds. 526521 1229.69 2.21 0.505 2.02 0.28 -6.83
12 Binani Cement 532849 1116.03 2.01 0.774 3.12 0.66 -25.51
13 Prism Cement 500338 1015.54 1.83 0.849 2.97 0.57 -40.31
14 J K Cements Ltd 532644 962.24 1.73 0.649 3.75 0.67 -25.67
15 OCL India 502165 594.61 1.07 0.951 2.59 0.48 -36.79
16 JK Lakshmi 500380 542.97 0.98 0.968 3.09 0.74 -48.78
17 Sagar Cements 502090 512.54 0.92 0.502 0.34 0.21 109.57
18 Mysore Cement 500292 462.21 0.83 0.894 5.22 0.55 -46.86
19 KCP 590066 409.39 0.74 1.223 5.90 0.56 -35.99
20 Guj. Sidhee Cem. 518029 389.03 0.70 0.714 3.89 0.19 9.51
21 Mangalam Cement 502157 306.65 0.55 0.848 2.93 0.29 -47.86
22 Ramco Inds. 532369 306.20 0.55 0.707 3.90 0.35 -41.16
23 Indian Hume Pipe 504741 269.47 0.48 0.740 3.16 0.58 17.79
24 Andhra Cements 532141 259.88 0.47 NA 4.14 0.44 -27.46
25 Sh. Digvijay Cem 502180 227.61 0.41 0.723 3.86 0.36 -39.39
26 Everest Inds. 508906 154.44 0.28 0.797 6.79 0.55 -12.93
27 Saurashtra Cem. 502175 150.75 0.27 0.655 0.18 0.20 -46.57
28 Deccan Cements 502137 150.54 0.27 0.957 2.67 0.70 19.10
29 Ckoramaandel 518017 147.61 0.27 NA 4.06 0.01 -

NOTE:

Beta:
Beta measures the degree to which any portfolio of stocks is
affected as compared to the effect on the market as a whole. Beta
of the index is 1. A higher beta indicates the stock's movements are
sharper than that of the market index and vice versa. Beta is
calculated for the period of one year, from August 2007 to July 2008.
R Square:
The coefficient correlation (R Square) measures the strength of
relationship between two variables the return on a security versus that
of the market. R Square is calculated for the period of one month, from
June 2008 to July 2008.
Volatility:
Volatility is the std. deviation of the monthly return from June 2008 to
July 2008. Volatility is measure of the amount by which an stock price is
expected to fluctuate over a given period.

20 V Share August, 2008

VALUE INVESTING
Value investing is a style of investment strategy from the The formula as described by Graham in 1962 edition of “Security Analysis”,
so-called "Graham & Dodd" School. Followers of this style, is as follows:
known as value investors, generally buy companies whose
shares appear underpriced by some forms of fundamental V* = EPS (8.5 + 2g)
analysis; these may include shares that are trading at, for Where:
example, high dividend yields or low price-to-earning or
price-to-book ratios. EPS : the company's last 12-month earnings per share. g : the company's
long-term (five years) earnings growth estimate. 8.5 : the constant represents
The main proponents of value investing, such as Benjamin Graham
the appropriate P-E ratio for a no-growth company as proposed by Graham.
and Warren Buffett, have argued that the essence of value investing is
To apply this approach to a buy-sell decision, each company's relative
buying stocks at less than their intrinsic value. The discount of the
Graham value (RGV) can be determined by dividing the stock's intrinsic value
market price to the intrinsic value is what Benjamin Graham called the
V* by its current price P.
"margin of safety". The intrinsic value is the discounted value of all
future distributions. RGV = V* / P
In the “Intelligent Investor”, Benjamin Graham describes a formula he An RGV of less than one indicates an overvalued stock and should not be
used to value stocks. He disregarded complicated calculations and bought, while an RGV of greater than one indicates an undervalued stock and
kept his formula simple. In his words: “Our study of the should be bought.
various methods has led us to suggest a foreshortened
and quite simple formula for the evaluation of growth The ISE Research Cell has applied the above mentioned approach
stocks, which is intended to produce figures fairly close to deciphered by Sir Benjamin Graham to BSE Sensex and NSE Nifty scrips.
those resulting from the more refined mathematical
Warren Buffett
The details are enlisted below :
calculations.”

VALUE INVESTING APPLIED TO CEMENT SECTOR

The value investing formula is applied on 33 companies selected from the Cement Sector, arranged as per their market capitalisation. The
Compounded Annual Growth Rate (CAGR) has been derived by using last five years EPS. It has been observed that amongst 34 companies 12
companies are Overvalued. Thus 21 companies are trading at their discounted price and their values are going to realize soon.

CAGR of V*(Intrinsic Latest Market

Company Name BSE Code NSE Symbol RGV Status
EPS value) Price 16/07/08
ACC 500410 ACC 1.47 7456.53 514.40 14.50 Undervalued
Ambuja Cem. 500425 AMBUJACEM 0.96 9.53 81.30 0.12 Overvalued
Andhra Cements 532141 ANDHRACEM 0.82 -64.93 23.85 -2.72 Overvalued
Anjani Portland 518091 - 2.48 2025.14 28.70 70.56 Undervalued
Barak Valley 532916 BVCL 1.34 632.50 31.75 19.92 Undervalued
Binani Cement 532849 BINANICEM 2.12 1921.47 48.60 39.54 Undervalued
Birla Corp. 500335 BIRLAJUTE 2.39 11934.78 159.45 74.85 Undervalued
Ckoramaandel 518017 - 2.02 2074.54 57.05 36.36 Undervalued
Dalmia Cement 500097 DALMIACEM 1.16 2137.11 208.00 10.27 Undervalued
Deccan Cements 502137 DECCANCE 1.88 7391.40 200.95 36.78 Undervalued
Everest Inds. 508906 EVERESTIND 1.08 180.89 100.5 1.80 Undervalued
Guj. Sidhee Cem. 518029 GUJSIDHCEM 0.78 -132.06 22.55 -5.86 Overvalued
Indian Hume Pipe 504741 INDIANHUME 0.65 -2080.37 454.25 -4.58 Overvalued
Kakatiya Cements 500234 KAKATCEM 1.22 1177.81 74.50 15.81 Undervalued
Madras Cement 500260 MADRASCEM 1.20 12344.25 2460.75 5.02 Undervalued
Mangalam Cement 502157 MANGLMCEM 0.87 -718.93 93.95 -7.65 Overvalued
NCL Inds. 502168 NCLIND 1.70 1350.06 35.75 37.76 Undervalued
OCL India 502165 OCL 0.92 -116.24 96.35 -1.21 Overvalued
Pittie Cement 500332 PITTIECEM 2.35 2012.04 1.85 1087.59 Undervalued
Rain Commodities 500339 RAINCOM 0.91 -91.23 170.25 -0.54 Overvalued
Ramco Inds. 532369 RAMCOIND 1.05 1001.22 635.00 1.58 Undervalued
Reinz-Talbros 520067 - 0.85 -18.40 4.00 -4.60 Overvalued
Roofit Inds. 526089 ROOFITIND 1.16 996.36 1.80 553.53 Undervalued
Sainik Finance 530265 - 1.18 49.96 7.33 6.82 Undervalued
Sanghi Inds. 526521 SANGHIIND 3.18 2883.05 55.90 51.58 Undervalued
Shiva Cement 532323 - 0.86 -2.43 8.01 -0.30 Overvalued
Shree Cement 500387 SHREECEM 1.85 13140.62 500.90 26.23 Undervalued
Shri Keshav 530977 - 1.14 21.22 15.50 1.37 Undervalued
Singhal Cement 518085 - 1.28 228.93 2.50 91.57 Undervalued
Siporex India 509890 - 0.81 -175.22 451.00 -0.39 Overvalued
U.P.Asbestos 40278 - 0.44 -12.33 12.00 -1.03 Overvalued
Vinay Cements 518051 - 0.87 -143.6 41.35 -3.47 Overvalued
Visaka Inds. 509055 VISAKAIND 1.16 672.63 56.05 12.00 Undervalued
RGV>1,the stock is undervalued RGV<1,the stock is overvalued

V Share August, 2008 21

 ULTRA TECH CEMENT LTD.

Cementing Future Company Analysis

Sector

BSE Code
T Cement

532538
he Indian cement industry - the
second largest cement producer in
the world, has a capacity of around
195 MTPA. The industry has been
> Production up by 8 per cent
aided by higher capacity
utilisation
NSE Symbol ULTRACEMCO witnessing over 95 per cent capacity
BSE Group A utilisation during the last couple of years, > Sales volumes up by 9 per
as compared to 80 90 per cent earlier. An cent
Quarter Three Result Good
additional capacity of around 115 MTPA
Date 21/07/2008 has been planned, which is likely to be on > RMC volumes up by 62 per
Current Market Price 538.65 stream by 2012. The per capita cent helped by rapid
consumption of cement at 135 kgs is one
Shares Outstanding 124485879 expansion in RMC network
of the lowest, when compared with the
52 Week Range 1165.00/510.00 levels in other rapidly growing economies,
offering scope for future growth.
> Impressive performance from
Beta 0.7632 white cement division
Face Value 10 Ultra Tech Cement's performance in FY08
has been impressive. Net Revenues at US$ > Operating margins declined
Market Capitalisation
(Rs. crores) 6705.65 1,368 million (Rs. 5,509 crores) was up by despite better realisation
26 per cent, while Net Profit of US$ 250
Avg. Monthly Volatility 2.56 %
million (Rs. 1,008 crores) reflected a > Sharp increase in energy cost
Avg. 15 Days Volume growth of 45 per cent. The Company has
on BSE/NSE 9601.90/19117.70 initiated various expansion and
modernisation programs to grow in the markets in which it operates. Continuous
efforts are also on to improve productivity and cost efficiencies. The Clinkerisation
Financials Snapshot (Rs. In Crs.)
unit at Andhra Pradesh Cement Works has been commissioned.
Net Buying 18400
Open Position 1390800 Trials have begun on the 1st Stream of the TPP of 23MW at Gujarat Cement Works
and all the four Streams aggregating 92MW will be fully operational during the year.
Change in Open
Interest (DOD) - The work relating to setting up of the split grinding Unit at Ginigera in Karnataka and
thermal power plants at various locations across the company is progressing
Expiry Date 31 July, 2008
satisfactorily. A capex of around Rs. 3,300 crores is committed towards these
Market Lot 400 programs and on completion they will result in sustaining growth and reducing
Annualized Volatility 48.11 costs. With an eye on value added growth, Ultra Tech has set up 15 Ready Mix
Concrete Plants in FY08. More such Plants are in the pipeline. New capacity
announcements may lead to a surplus scenario from the next calendar year,
Absolute Return resulting in a challenging price environment. The company will focus on sustaining
(In Percentage) 1 Year 3 Years 5 Years plant performance, optimize efficiencies and improve service standards.
Ultra Tech 1.61 121.16 -
UltraTech has five integrated plants, five grinding units and three terminals two in
BSE Sensex 19.68 140.95 413.15 India and one in Sri Lanka. These include an integrated plant and two grinding units
NSE Nifty 23.89 132.58 384.00 of the erstwhile Narmada Cement Company Limited, a subsidiary, which has been
amalgamated with the company in May 2006.

UltraTech is the country's largest exporter of cement clinker. The company exports
Annualised Return
over 2.5 million tonnes per annum, which is about 30 per cent of the country's total
(In Percentage) 1 Year 3 Years 5 Years
exports. The export markets span countries around the Indian Ocean, Africa,
Ultra Tech 1.61 30.29 -
Europe and the Middle East.
BSE Sensex 19.68 34.06 38.69
The cement division of L&T was demerged in 2004 after Grasim made the 30 per
NSE Nifty 23.89 32.49 37.09
cent open offer for equity shares, gaining control over the new company,
christened UltraTech. Besides the long term strategic value in the wake of rising

22 V Share August, 2008

 Company Analysis

demand for cement, with the growth of housing and infrastructure sectors in the
country, the acquisition brings significant synergy gains to the parent company.
Net Sales Ready Mix Concrete is likely to see substantial growth in the coming years.
Recognising the opportunities that this business will offer, UltraTech has
Rs. in Crores commenced setting up of Ready Mix Concrete plants at various places in the
6000
5,509 country.
4,911
5000 UltraTech's subsidiaries are: Dakshin Cements Limited and UltraTech Ceylinco
(Private) Limited.
4000
3,299 PRODUCTS
3000 2,607
2,251 UltraTech is India's largest exporter of cement clinker. The company's production
2000 facilities are spread across five integrated plants, five grinding units, and three
terminals two in India and one in Sri Lanka. All the plants have ISO 9001
1000 certification, and all but one have ISO 14001 certification. While two of the plants
have already received OSHAS 18001 certification, the process is underway for the
0 remaining three. The company exports over 2.5 million tonnes per annum, which is
2003-04 2004-05 2005-06 2006-07 2007-08
about 30 per cent of the country's total exports. The export market comprises of
countries around the Indian Ocean, Africa, Europe and the Middle East. Export is a
thrust area in the company's strategy for growth.

Operating Profit UltraTech's products include Ordinary Portland cement, Portland Pozzolana
cement and Portland blast furnace slag cement.
Rs. in Crores
2100 ! Ordinary Portland cement

1,720 ! Portland blast furnace slag cement

1700
1,418 ! Portland Pozzolana cement
1300
! Cement to European and Sri Lankan norms

900 Ordinary Portland cement

554 Ordinary portland cement is the most commonly used cement for a wide range of
500 351 applications. These applications cover dry-lean mixes, general-purpose ready-
319
mixes, and even high strength pre-cast and pre-stressed concrete.
100
2003-04 2004-05 2005-06 2006-07 2007-08 Portland blast furnace slag cement

Portland blast-furnace slag cement contains up to 70 per cent of finely ground,

granulated blast-furnace slag, a nonmetallic product consisting essentially of
Net Earnings silicates and alumino-silicates of calcium. Slag brings with it the advantage of the
energy invested in the slag making. Grinding slag for cement replacement takes
only 25 per cent of the energy needed to manufacture portland cement.
Rs. in Crores
1,008
Portland Pozzolana cement
1000
Portland pozzolana cement is ordinary portland cement blended with pozzolanic
782
800 materials (power-station fly ash, burnt clays, ash from burnt plant material or
silicious earths), either together or separately. Portland clinker is ground with
600 gypsum and pozzolanic materials which, though they do not have cementing
properties in themselves, combine chemically with portland cement in the
400 presence of water to form extra strong cementing material which resists wet
230
cracking, thermal cracking and has a high degree of cohesion and workability in
200
concrete and mortar.
39 3 BUSINESS AND FINANCIAL REVIEW
0
2003-04 2004-05 2005-06 2006-07 2007-08 The Cement business has recorded good performance during the quarter. Higher
capacity utilisation resulted in production increasing by 8 per cent at 4.20 million
tons (see the table 1). Sales volumes were up by 9 per cent at 4.27 million tons. The
performance for the year was equally encouraging. Both Production and Sales

V Share August, 2008 23

Company Analysis
volumes grew by 7 per cent at 15.36 million tons and 15.54 million tons respectively.
However, the sharp increase in fuel cost led to lower operating margins. The
Net Worth
Company continued its efforts to achieve over hundred percent capacity utilisation
to meet the growing demand. Sequentially, the realisation remained flat despite
Rs. in Crores
increase in cost, leading to lower operating margins. RMC (Ready Mix Concrete)
3000
2,697 volumes expanded by 62 per cent in Q4FY08 and by 36 per cent in FY08, buoyed by
the rapid expansion in RMC network. The capacity of the existing Units increased
2500 from 17.00 MMT to 18.20 MMT through de-bottlenecking.

Table 1: Capacity Utilisation

2000
1,764
FY08 FY07 % change

1500 Installed capacity (Mn. TPA):

1,075 1,067 1,038 Clinker 14.5 14.5 -

1000 Cement 18.2 17 7
Production (Mn Mt.):
Clinker 14.35 14.22 1
500
2003-04 2004-05 2005-06 2006-07 2007-08 Cement 15.07 14.64 3
Clinker capacity utilisation 99% 98%
Effective capacity utilisation* 101% 101%
*Effective capacity utilization: cement production+clinker sold
EPS
Source: Annual report 2007-08

Rupees The increase in turnover is linked to higher domestic cement sales volume and
100
improved realisation in local and export markets. The Ready Mix Concrete (RMC)
80.94 sales also rose to Rs. 271 crores in FY08 compared with Rs. 43 crores in FY07. Other
income has risen from Rs. 61 crores to Rs. 100 crores. The company earned Rs. 30
75
62.84 crores on surplus money invested in various debt schemes of mutual funds and Rs.
70 crores through other operational receipts like carbon credit, sales of scrap,
50 exchange gain etc. The operating profit was up by 23 per cent from Rs. 1,479 crores
in FY07 to Rs. 1,820 crores in FY08. The PBIDT margins were at 33 per cent in FY08
compared to 30 per cent in FY07. The improved profitability is due to better plant
25 18.46 productivity and higher realisations. However, costs of raw material, energy and
freight rose sharply. Employee costs too witnessed a steep increase. Net profit for
3.12 0.23 FY08 stood at Rs. 1,008 crores compared to Rs. 782 crores in FY07 (see the table 2).
0
2003-04 2004-05 2005-06 2006-07 2007-08
Table 2: Financial Performance of Ultra Tech Cement
% %
Q4 FY08 Q4 FY07 FY08 FY07
Change Change
Grey Cement
Dividend
Capacity Mn. TPA 16.75 13.12 28 16.75 13.12 28
Production Mn. MT 4.2 3.88 8 15.36 14.42 7
Rs. per share
6.00
Sales Volumes Mn. MT 4.27 3.92 9 15.54 14.52 7
5.00 Avg. Realisation Rs./MT 3,267 2,979 10 3,192 2,867 11
5.00
RMC
4.00 Sales Volumes Lac Cu. Mtr 5.9 3.6 62 19.5 14.3 36
4.00
Avg. Realisation Rs./MT 2,824 2,589 9 2,731 2,465 11
White Cement
3.00
Capacity TPA 475,000 475,000 - 475,000 475,000 -
2.00 1.75 Production MT 120,433 97,116 24 407,882 364,649 12
Sales Volumes MT 114,845 102,200 12 396,295 367,167 8
1.00 0.75 Avg. Realisation Rs./MT 7,160 6,518 10 6,902 6,458 7
0.50
Net Revenue* Rs. Crs. 1,675.40 1,364.70 23 5,890.40 4,889.20 20
0.00 PBIDT Rs. Crs. 483 470 3 1,876.30 1,623.00 16
2003-04 2004-05 2005-06 2006-07 2007-08
PBIDT Margin % 28.8 34.5 - 13.9 33.2 -
PBIT Rs. Crs. 427.2 423.9 1 1,677.60 1,448.20 16
Capital Employed Rs. Crs. 5,459 3,077 77 5,459 3,077 77
ROAvCE (PBIT)basis % 40 65.8 - 39.30 56.20 -
Source: Annual Report 2007-08

24 V Share August, 2008

 Company Analysis
During the year, Ultra Tech produced 15.07 MMT of cement (14.64 MMT). Effective
Sensex Vs Ultra Tech Cement capacity utilisation remained flat at 101 per cent. Exports were curtailed to cater to
Month Sensex UTCL the growing domestic demand. This supported domestic volume growth of 7 per
June, 2007 900.05 14650.51 cent. Variable cost increased by over 8 per cent mainly on account of escalation in
July, 2007 932.15 15550.99 the cost of raw materials, including imported coal and mounting freight charges.
August, 2007 920.5 15318.6 Continuous de-bottlenecking efforts across the company's Units resulted in a
September, 2007 1042.55 17291.1 capacity increase of 1.2 MMT.
October, 2007 999.15 19837.99
Overall volume remains flat, despite the disruption of operations due to floods at
November, 2007 987.4 19363.19
GCW. Exports were curtailed to cater to the domestic market. Domestic sale of
December, 2007 1014.5 20286.99
cement has increased by 7 per cent from 13.35 Mn Mt to 14.25 Mn Mt. But exports
January, 2008 860.6 17648.71
of both the products cement and clinker have decreased by 42 and 22 per cent
February, 2008 911.35 17578.72 because of higher domestic demand (see the table 3 & 4).
March, 2008 779.85 15644.44
April, 2008 761.05 17287.31 Table 3: Sales Volume
May, 2008 650.25 16415.57 FY08 FY07 % change
June, 2008 544.85 13461.6
Sales Volume (Mn Mt.)
July, 2008 538.65 13850.04
Domestic- Cement 14.25* 13.35* 7
1200 25000 Clinker 0.37 0.3 23
1000 20000 Total 14.62 13.65 7
Exports- Cement 0.73 1.26 -42
Ultratech

800
Sensex

15000
600
10000 Clinker 1.72 2.21 -22
400
5000 Total 2.45 3.47 -29
200
0 0
Total Volume 17.07 17.12
*excluding trading sales of 0.04 in FY08 and 0.56 in FY07
Au -l 07

8
Fe -08
Ju 07

Ju -08
7

M r-08
Se -07

M -08
Oc 07

c- 7
Ja 07

Apr-08

Ju -08

l- 0
No t-0
Dev-0
n-

p-

n
g

ay
a
Ju

Source: Annual Report 2007-08

Ultra tech Sensex
Table 4: Sales Realisation (Net of Excise Duty)
FY08 FY07 % change
NIFTY Vs Ultra Tech Cement Average Realisation (Rs./MT) 3,111 2,735 14
Month Nifty UTCL Domestic- Cement 3,322 2,970 12
June, 2007 821.75 4222.17 Exports - Cement 2,503 2,435 3
July, 2007 924.90 4474.18 Clinker 1,901 1,630 17
August, 2007 891.22 4301.36 Source: Annual Report 2007-08

September, 2007 1007.33 4659.92 Half yearly performance

October, 2007 1058.77 5456.62 The company's cement production increased from 6.87 MMT in H1FY07 to 7.25
November, 2007 990.88 5748.58 MMT in H1FY08, registering a growth of 6 per cent. Effective capacity utilisation was
December, 2007 987.31 5963.57 95 per cent. Domestic volume registered a growth of 7 per cent from 6.58 MMT to
7.02 MMT. Exports were curtailed to cater to domestic demand (see the table 5).
January, 2008 904.13 5756.35
February, 2008 878.14 5201.56 Table 5: Half yearly performance of Ultra Tech
March, 2008 822.61 4769.50
H1FY08 H1FY07 % Change
April, 2008 792.76 4901.91
Installed capacity (MMT)
May, 2008 688.76 5028.66 Clinker 14.5 14.5
June, 2008 611.25 4463.79 Cement 17.0 17.0
July, 2008 539.82 4015.68 Production (MMT):
1200 7000 Cement 7.25 6.87 6
1000 6000 Effective capacity utilization 95% 94%
5000
Ultra Tech

800
4000 Sales Volume (MMT):
Nifty

600
3000 Domestic
400 2000
200 1000 -Cement 7.02 6.58 7
0 0 Exports
8
a 8
M r-08
ay 8
Ju -08
Ju -08
8
Ju -07
Au -l 07
p 7
7
Dev-07
7
n 7
Fe -0
M b- 0
Apr-0

l-0
Se t-0
Oc -0
No t-0

Jac-0

-Cement 0.33 0.57 -42

n
n
Ju

Ultra Tech Nifty -Clinker 0.63 0.98 -36

Total 7.98 8.13 -2
Source: Annual Report 2007-08

V Share August, 2008 25

Company Analysis

Table 6: Capex Summery

Cash Outflow
Total Project Cost Net Capex*
FY09 FY10
4.9 Mn. TPA Tadpatri
Project, A.P.
(incl. 50 MW TPP) 1,613 153 - -

3 Nos. Power
Plants (175 MW) 1,096 409 - -

Grinding and Jetty

Capacity Expansion
at Pipavav & Bulk Terminal 370 370 - -

RMC plants
(17 Nos., Capacity
3.3 mn. Cu. Mtrs.) 142 142 - -

Modernisation,
Upgradation, etc. 479 479 - -

Ultra Tech 3,700 1,553 997 415

Source: Company Website

Net Sales at Rs. 2,539 crores (Rs. 2,185 crores) was up by 16
per cent compared to the corresponding period of the
previous year. Profit before Interest, Depreciation and Tax at
Rs. 816 crores (Rs. 654 crores) rose 25 per cent. Profit after Tax
grew by 32 per cent from Rs. 338 crores to Rs. 445 crores.
CAPITAL EXPENDITURE PLAN
Ultra Tech Cement has initiated several capital expenditure
proposals to continue to grow in the markets in which it
operates, improve productivity and cost efficiencies and
address the concern of rising power costs. A sum of around
Rs. 3,700 crores (see the table 6) had been earmarked
towards this, of which Rs.1,800 crores has already been spent
in FY08. The expansion / modernization programs are
progressing in line with expectation. Upon completion, they
will result in sustaining growth and reduce costs.
= 225 MW of captive thermal power capacity at its Units
in Andhra Pradesh (50 MW) - Gujarat (92 MW).
Chhatisgarh (50 MW). And supplementary capacity in
Maharashtra (33 MW). On completion, the company will
be able to meet 80 per cent of its power requirements
from internal generation, consequently reducing the cost
of power.
= 4.9 million TPA additional cement capacity at its Unit in
Andhra Pradesh, supplemented by a Grinding Unit in
Karnataka.
growth of cement sector. Demand expected to grow at about
9 per cent. Bunching of capacity expected in the next two
years based on announced capacity but increasing inflation
rate plus raw material cost may create uncertain price
environment. Although cement sector is completely
decentralized, government intervention will be likely and
prices may come under pressure in calendar year 09.
Operating margins of companies may come under pressure
due to increase in input costs. New captive TPP and reduced
lead distance post commissioning of new capacities will help
in moderating the cost increase. Capacity may be increased
through debottlenecking by 2.40 Mn. tons in Grasim and 1.20
Mn. Tons in UltraTech. Consolidated capacity post expansion
will stand augmented at 48.7 Mn. Tons. New capacities will
lead to strong volume growth going forward. The project
implementation of the company is progressing satisfactorily.
An overview of ongoing projects of the company is given
below:
! 3.3 Mn. Tons each, Shambhupura (Raj.) and Tadpatri
(A.P.) clinkerisation unit commissioned, expansions will
be operational in H1FY09
! 1.3 Mn. Tons grinding unit at Panipat (Har.)
commissioned in Grasim
! Kotputli (Rajasthan) unit expected to be commissioned
by Q3FY09 23 MW TPP commissioned at Jawad (M.P.)

= 2.9 million cubic metres of Ready Mix Concrete ! 144 MW TPP at Grasim & 225 MW TPP in UltraTech
capacity. expected to be commissioned

CEMENT: OUTLOOK

Growing demand for housing and commercial complexes has

boosted the infrastructure sector that played a catalyst role in

26 V Share August, 2008

 Company Analysis

ULTRA TECH CEMENT LTD.

SHARE HOLDING PATTERN (in %) INDUSTRY COMPARISON GROWTH RATES (in %)

( as on June 30, 2008) UTCL Industry Mar-08 Mar-07 Mar-06 Mar-05
Foreign : 6.54 Sales : 6286.24 48576.42 Sales 14.63 44.88 23.79 13.54
Institutions : 8.73 Market Cap : 9708.33 58001.60 EBITDA 23.02 150.20 100.38 -22.10
Non Promoter Corp. Hold. : 15.97 Net Profit : 1007.54 7685.05 EBIT 26.31 233.97 412.09 -55.39
Promoters : 54.38 P/E : 6.50 9.33 PAT 28.80 240.48 7961.75 -92.66
Public & Others : 14.39 Equity : 124.49 5152.20 Networth 52.87 69.89 -2.71 -0.73
Totals : 100.00 Gross Block : 4972.60 46436.25 Market Cap 1.22 12.65 93.05 0.00
INCOME STATEMENT (in Rs. cr) QUARTER PERFORM. (in Rs. cr)
Particulars Mar-08 Mar-07 Mar-06 Mar-05 Mar-08 Dec-07 Sep-07 June-07
Net Sales 5512.43 4908.74 3302.83 2604.25 1495.98 1601.66 1382.14 1173.41
Other Income 99.85 61.46 37.00 21.07 26.60 27.03 20.13 25.80
Total Income 5635.70 4939.44 3375.57 2648.88 1522.58 1628.69 1402.27 1199.21
Total Expenditure 3815.97 3460.28 2784.38 2353.84 1050.14 1113.18 913.65 843.85
Operating Profit 1819.73 1479.16 591.19 295.04 472.44 515.51 488.62 355.36
Interest 75.67 86.83 89.64 106.88 24.72 19.32 17.44 18.76
Gross Profit 1744.06 1392.33 501.55 188.16 447.72 496.19 471.18 336.60
Depreciation 237.23 226.25 216.03 221.78 71.13 65.00 58.32 58.05
Tax 510.06 395.89 56.93 31.53 58.11 190.24 117.00 89.69
Adjusted Net Profit 1007.54 782.14 229.53 2.86 265.01 282.88 279.49 185.86
Operating Margin (%) 28.95 26.97 15.62 9.65 31.58 32.19 35.35 30.28
Gross Profit Margin (%) 19.80 18.39 11.78 7.35 29.93 30.98 34.09 28.69
Netprofit Margin (%) 16.03 14.26 6.07 0.09 17.71 17.66 20.22 15.84
BALANCE SHEET KEY RATIOS
Particulars Mar-08 Mar-07 Mar-06 Mar-05 Particulars Mar-08 Mar-08 Mar-06 Mar-05
Sources of Funds Debt-Equity 0.74 1.08 1.42 1.48
Share Capital 124.49 124.49 124.49 124.40 Long Term Debt-Equity 0.67 1.07 1.34 1.32
Reserves Total 2571.73 1639.29 913.78 942.73 Current Ratio 0.65 0.70 0.70 0.66
Secured Loans 982.66 1151.25 1221.93 1253.35 Fixed Assets Turnover 1.29 1.17 0.85 0.71
Unsecured Loans 757.84 427.38 229.90 278.03 Inventory Turnover 12.05 13.49 11.41 12.07
Total Debt 1740.50 1578.63 1451.83 1531.38
Debtors Turnover 31.42 30.80 21.98 17.50
Total Liabilities 4436.72 3342.41 2490.10 2598.51
Interest Coverage 20.91 14.43 4.19 0.69
Application of Funds
Gross Block 4972.60 4784.70 4605.38 4304.29 ROCE (%) 40.69 42.96 14.75 2.77
Net Block 2500.46 2517.28 2537.17 2548.90 RONW (%) 45.18 55.84 21.83 0.27
Capital Work in Progress 2283.15 696.95 141.03 48.18 P/E 9.74 12.37 37.57 2954.58
Investments 170.90 483.45 172.39 184.79 P/BV 3.60 5.44 8.20 4.13
Inventories 609.76 433.58 379.57 283.710 P/CEPS 7.87 9.58 19.23 19.75
Sundry Debtors 216.61 183.50 172.55 171.95 EV/EBIDTA 6.24 7.49 16.75 19.95
Cash and Bank 100.69 89.59 61.60 56.26 Market Cap/Sales 1.54 1.75 2.25 1.44
Loans and Advances 376.83 253.50 158.80 325.73 DUPONT ANALYSIS
Total Current Assets 1303.89 960.17 772.52 837.65 PBIDT/Sales(%) 28.95 26.97 15.62 9.65
Current Liabilities 1153.78 736.71 516.87 415.43
Sales/Net Assets 1.42 1.64 1.52 1.18
Provisions 125.55 18.47 39.18 23.87
PBDIT/Net Assets 0.41 0.44 0.24 0.11
Total Current Liabilities 1279.33 755.18 556.05 439.30
Net Current Assets 24.56 204.99 216.47 398.35 PAT/PBIDT(%) 55.37 52.89 38.86 0.97
Net Deferred Tax -542.35 -560.26 -576.96 -581.71 Net Assets/Net Worth 1.65 1.90 2.40 2.44
Total Assets 4436.72 3342.41 2490.10 2598.51 ROE(%) 45.18 55.84 21.83 0.27

SENSEX V/S UTCL SHARE PRICE

180.00 48.00
160.00 47.00
Date UTCL SENSEX 140.00 46.00
120.00 45.00
2005 25.52 42.33 100.00 44.00
80.00
43.00
2006 156.80 46.70 60.00
40.00 42.00
20.00 41.00
2007 -7.51 47.15
0.00 40.00
-20.00 39.00
UTCL Sensex

V Share August, 2008 27

i s e ipo tracker
Current IPO Performance
Current Price
Date of
Company as on 25 Issue Price % Change
Listing
July, 2008

Aishwarya Telecom Limited 29.80 35.00 7-May-08 -14.86

Anu`s Laboratories Limited 356.75 210.00 4-Jun-08 69.88

Archidply Industries Limited 37.00 74.00 4-Jul-08 -50.00

Avon Weighing Systems Limited 8.00 10.00 3-Jul-08 -20.00

Bafna Pharmaceuticals Limited 24.50 40.00 27-Jun-08 -38.75

First Winner Industries Limited 122.05 125.00 8-Jul-08 -2.36

Gokul Refoils and Solvent Limited 217.40 195.00 4-Jun-08 11.49

KSK Energy Ventures Limited 186.05 240.00 14-Jul-08 -22.48

Lotus Eye Care Hospital Limited 39.25 38.00 11-Jul-08 3.29

Niraj Cement Structurals Limited 56.40 190.00 19-Jun-08 -70.32

Sejal Architectural Glass Limited 50.05 115.00 1-Jul-08 -56.48

Somi Conveyor Beltings Limited 22.70 35.00 24-Jul-08 -35.14

kiri Dyes and Chemicals Limited 153.00 150.00 22-Apr-08 2.00

Titagarh Wagons Limited 604.75 540.00 21-Apr-08 11.99

Sita Shree Food Products Limited 17.50 30.00 7-Apr-08 -41.67

IPOs listed on BSE in June - July 2008

Price as on July 25, 2008 Volume as
BSE Code Company List Date Offer Price List Price on July 25,
Open High Low Close 2008

533001 Somi Conveyor 24-Jul-08 35.00 37.65 22.70 25.00 21.50 22.70 2832687

532997 KSK Energy 14-Jul-08 240.00 220.00 186.05 192.20 184.15 186.05 197863

532998 Lotus Eye Care 11-Jul-08 38.00 35.00 39.25 40.00 38.50 39.25 336498

532996 First Winner 8-Jul-08 125.00 125.00 122.05 132.00 122.00 122.05 1349675

532994 Archidply Inds 4-Jul-08 74.00 74.55 37.00 38.00 36.85 37.00 55370

532995 Avon Weighing 3-Jul-08 10.00 13.90 8.00 8.20 7.90 8.00 240581

532993 Sejal Archit 1-Jul-08 115.00 110.00 50.50 52.35 49.80 50.05 96628

532989 Bafna Pharm 27-Jun-08 40.00 43.80 24.50 26.00 24.50 24.50 68325

532986 Niraj Cement 19-Jun-08 190.00 185.00 56.40 59.00 55.00 56.40 46282

532980 Gokul Refoils 4-Jun-08 195.00 203.45 217.40 235.45 215.00 217.40 150481

28 V Share August, 2008

 ISE IPO Tracker

most focused IPO VISHAL INFORMATION TECHNOLOGIES LIMITED

Overview
Objects of the Issue
Vishal Information Technologies Ltd. was incorporated on May 2nd, 1994 and is one
! To finance the cost of expansion of the among the first few companies to venture in the field of ITES/BPO services. VITL is a
facilities in Chennai.
subsidiary of Tutis Information Technologies Ltd. (formerly known as Amex Information
! To finance the cost of setting up of Quality Technologies Ltd.). The company has expertise in the areas of data digitization, E-
Assurance Center and Marketing office in
Mumbai
publishing, digital library, E-accounting and fund accounting. It company covers almost
all the range in IT enabled services other than voice call center and specializes in the
! To set up a subsidiary in the United
Kingdom and United States of America production of large print files specially aimed for the visually impaired. The focus of the
company is channeled towards maximum utilization of the group's expertise in terms
! To meet the requirements of the general
corporate purposes of the technical skills.
! To meet the issue expenses Vishal Information Technologies Ltd. provides data conversion and data digitization
Offer Date 21-07-08 to 24-07-08 solutions to global enterprise clients from its delivery center in India. The company's
Offer Price 140.00 to 150.00 portfolio of services comprises data digitization, e-publishing, digital library and print
Face Value 10 on demand. The company currently offers services to various Universities, Publishing
Shares Offered 27,90,000 Houses, Counties and Courts along with a few non-profit organizations. The company
Promoters Tutis Technologies Ltd. typically provides solutions to meet specific requirements of its offshore clients. The
Listing company significant value addition lies in solving business issues for clients' through a
(Stock Exchange) BSE cost effective combination of people, process and technology. The company has
NSE gained considerable experience in managing multiple small and complex processes
across different businesses of its clients' in a cost effective manner using specific
domain skills and customized softwares.

Shareholding Pattern (as on 14-Feb-2008) Business Outlook

Pre-Issue Post-Issue Over a period VITL has honed its skill and has identified three verticals to focus its
Shareholder's
Category No. of %age No. of %age efforts of marketing. Revenue for the company will be generated by these core
Shares Shares
identified areas which are Projects & Services, E-Publishing & Fund Accounting.
Promoters
Holding 45,79,062 51.51 45,79,063 42.88
? Projects & Services includes areas in Data Digitization. The target audiences for
Non-Promoter
this are NGO's, government Organization, Universities, Courts, Hospitals etc. The
Holding 14,10,000 15.86 4,10,000 3.84
other expanded areas in Data digitization includes Data Capture, Forms
Others 29,00,038 32.63 56,90,938 53.29
Processing, Microfilm Digitization where the company has extensive experience
Total 88,90,000 100.00 1,06,80,000 100.00
catering to clients like reputed Universities, US Counties etc. XML conversion is a
natural take off in this area.
Comparison with other companies ? E-Publishing: This is a niche area where our specialty includes typesetting in
Name of the EPS BV RONW Indesign & Quark & delivering Adobe PDF high resolution files. The company's
Equity Net P/E
Company Profit (Rs.) (Rs.) % well appreciated specialty is production of large Print files especially aimed at
Core Projects 16.69 44.3 5.3 38 21.40 35.53 Visually impaired. The company has automated processes set and skill
developed in large volume turnover. The company is already catering to
CSS Techn. 5.47 1.90 3.50 26.30 13.20 11.71
recognized print and publisher houses around the world.
Datamatics 20.36 14.1 3.5 62.1 8.9 8.8
? Digital Library: Vishal's DL meets the large vacuum existing in meeting the need
eClerx 18.87 43.9 23.3 70 - 10.24 for study & reading materials to Visually Impaired world over. Digital Library is an
FCS Software 14.43 23.20 15.7 63 28.80 6.43 important project with a social significance. The spotlight is on the ease with
which VISUALLY CHALLENGED can have access to knowledge. About 3 million
Hexaware 28.72 87.8 6.1 47.4 26.10 9.44
adults & children are denied the Right to Read only in UK apart from other English
Hov Services 12.55 0.90 0.70 64.7 6.10 163.57 speaking countries. The Copyright (Visually Impaired Persons) Act allows
Tera Software 11.51 12.2 10.6 32.7 44.60 4.35 individuals and educational establishments to make copies of printed material in
other formats, such as Braille, without applying for permission. The exception
Tricom India 11.66 14.40 12.00 45.30 40.50 10.63
does not apply if there are commercially published versions of a work, which are
VITL 8.89 11.21 12.61 59.01 21.36 - accessible to blind and partially sighted people. Large print version of reading
materials (fiction & non-fiction) will be loaded to the DL. The revenue will be in 3
(Source: Capital Market June 16-29, 2008; Segment ITES)
parts. One is Direct sales of Print version, the second is direct on line selling of
titles in print version, & the third is direct on line selling thru downloads from the
company's website. The other revenue generating strategy is to cater to
Investors should read the risk factors and more detailed membership in DL & earn from subscription.
information in the Prospectus and the Application form
before investing in the issue

V Share August, 2008 29

 ISE IPO Tracker
The company has three largest clients; UK client contributed 21
per cent, European client contributed 19 per cent and American
client contributed for 16 per cent of the income for the year
ended March 2008 that comes around 56 per cent of the total
income.
The company plans to expand its market share by way of
expansion of the facilities of its existing services and also going
in for new verticals. The issue proceeds would also be utilized
for setting up of marketing offices in UK and USA which would
be 100 per cent subsidiaries of Vishal and also marketing office
in Mumbai. The details of the existing capacity and the future
capacity after the proposed expansion are mentioned in table 1.
Financial Performance
VITL earns income from contracts to provide data digitization
and data conversion solutions to its clients. In the year ended
March 31st, 2008, the company had a total unconsolidated
income of Rs. 3807.84 lacs. The company attributes the growth
in its income to increased volumes of contracts from existing
clients, addition of new clients and selective price increases. In
fiscal 2008, the company had a total un-consolidated income of
Rs. 3807.84 lacs compared to Rs. 3060.10 lacs in fiscal 2007, an
increase of approximately 24.45 per cent. For the year ended
March 31st, 2008, the income from top three clients was Rs.
21.32 CRS, constituting 56 per cent of the company's total
income in that period.

Table 1: Existing and proposed capacity of VITL The industry average Price Earning (PE) ratio is 11.80 and the PE
Present Proposed ratio at which the company is proposing on the lower end of the
Services seating capacity price band is 11.10 and the higher end of the price band is 11.90
seating capacity
which is higher than the average industry PE ratio.
Data digitalization 250 450
E-publishing 150 250 Table 2: Financial Comparison of Vishal
Digital Library 75 100 Information Technologies Ltd. (Rs. in crores)

Source: Offer Document 2008 %

Particulars 2008 2007
Change
The company's strategy and target markets Equity Paid Up 8.89 8.58 3.61
Networth 53.39 38.47 38.78
VITL has gained proficiency and identified three verticals to Capital Employed 53.84 38.53 39.74
focus its efforts of marketing. The revenue for the company is Gross Block 5.47 5.16 6.01
contributed to a major extent by these core functions which are Sales 38.08 30.6 24.44
projects and services and E-publishing. The company has PBIDT 13.21 11.02 19.87
defined a road map to achieve the targets. They are: PBDT 13.14 10.97 19.78
PBIT 12.81 10.37 23.53
1. Subsidiary Company in UK and USA: One of the objects
PBT 12.74 10.32 23.45
of the issue is opening of subsidiary companies in UK and
PAT 11.21 10.31 8.73
USA where the market will give boost to prospects Book Value (Unit Curr) 60.06 44.84 33.94
manifolds. The opening of these subsidiaries would add to EPS (annualised) (Unit Curr) 12.61 12.02 4.91
its advantage while participating in competitive project PBIDTM (%) 34.69 36.01 -
bidding or in tenders and also in terms of operations this APATM (%) 29.44 33.69 -
will lead to seamless flow while handling marketing ROCE (%) 28.36 32.01 -
demands. RONW (%) 24.41 30.95 -
Source: Corporate Database
2. Appointment of local marketing person: The local
markets in UK and USA respond faster to a national of The turnover of the Company during FY 2007-08 was Rs.
British or American origin. The company proposes to 3807.84 lacs against turnover of Rs. 3060.10 lacs for the year
enhance its presence by employing the people of the land ended 31/03/07. The increase in sales is on account of new
which would make marketing easier and participation in clients added to the company. This financial year the company
the local tenders. This marketing office will follow up on also diverted its business activities in the filed of Print on
their own with their regular contacts apart from attending Demand and digital library. The expenses of the company have
to: increased from Rs. 1958.69 lacs to Rs. 2486.55 lacs due to
expenses incurred towards diversion of business line and
a. Existing clients
acquiring new clients. The Financial Expenses have increased to
b. Leads given by clients
Rs. 6.86 lacs during F.Y. 2007-08 from Rs. 4.91 lacs for FY 2006-
c. Email & Tele-calling campaigns
07 due to the cash credit facility availed by the company. The
d. Tenders or enquiries floated in lay press.
company availed this facility since April 2007 (see the table 2).
3. Tenders: Every Government & Semi-Government
As a result of increase in sales, profit before depreciation and
organization makes purchase through tenders. This
tax increased to Rs. 1274.59 lacs in fiscal 2007-08 as compared
appears in lay press on a regular basis. Apart from this
Rs.1031.75 lacs in fiscal 2006-07. The Profit After Tax is Rs.
there are agencies that collate such information on a daily
1723.36 lacs for FY 2007-08 as against Rs. 1030.62 lacs for FY
basis and update the same. VITL will make cold calls and
2006-07 on account of increase in sales. The profits of the
participate in such tenders. Having a local office in the UK
company did not increase in the proportion to the increase in
& USA will enhance company's effort while such
sales due to the applicability of MAT to the company.
participation.

30 V Share August, 2008

 ACADEMIC CORNER

What is a Preferred stock ?

A
preferred stock, also known
as a preferred share or
simply a preferred, is a type
of stock. It typically gives the
owner the right to collect a fixed
dividend from the firm when funds are
available for distribution, with higher
priority than regular stock owners,
hence the 'preferred' name. However, it
generally does not give the owners any
voting power in the decisions of the
firm. In that sense it has a lower ranking
than regular stock, and hence is more
similar to debt. Also, the dividend owed
to preferred
shareholders
is generally fixed and therefore they do
not benefit from large dividend payouts,
as regular stockholders do.

RIGHTS OF "PREFERRED SHARE" HOLDERS

Unlike common stock, preferred stock usually has several and omission of preferred dividends is not an event
rights attached to it: of default for the company's debt.

! The core right is that of preference in the payment
of dividends and upon liquidation of
the company. Before a dividend can be
declared on the common shares, any
dividend obligation to the preferred
shares must be satisfied.
! The dividend rights are often
cumulative, such that if the dividend is
not paid it accumulates from year to
year.
! Preferred stock has a fixed liquidation
value Par value associated with it. This
represents the amount of capital that
was contributed to the corporation
when the shares were first issued.
! Preferred stock has a claim on
liquidation proceeds of a stock
corporation, equivalent to its par or
liquidation value. This claim is senior
to that of common stock, which has
only a residual claim.
! Almost all preferred shares have a fixed dividend
amount. The dividend is usually specified as a
percentage of the par value or as a fixed
amount.Unlike debt securities, however, a company
is not legally required to pay preferred dividends,
! Variable preferreds are rare exceptions; their
changing dividends depend on prevailing
interest rates, or varying as a percentage of
net income.
! Some preferred shares have special
voting rights to approve certain
extraordinary events (such as the issuance
of new shares or the approval of the
acquisition of the company) or to elect
directors, but most preferred shares provide
no voting rights associated with them.
Some preferred shares only gain voting
rights when the preferred dividends are in
arrears for a substantial time.
! Usually preferred shares contain
protective provisions which prevent the
issuance of new preferred shares with a
senior claim. Individual series of preferred
shares may have a senior, pari-passu or
junior relationship with other series issued
by the same corporation.
! Occasionally companies use preferred shares as
means of preventing hostile takeovers, creating
preferred shares with a poison put or forced
exchange/conversion features that exercise upon a
change in control.

The above list, although including
several customary rights, is far from
comprehensive. Preferred shares, like
other legal arrangements, may specify
nearly any right conceivable. Preferred
shares normally carry a call provision,
enabling the issuing corporation to
repurchase the share at its (usually
limited) discretion.
Some corporations contain provisions
in their charters authorizing the
issuance of preferred stock whose
terms and conditions may be
determined by the board of directors
when issued.These "blank check"
preferred shares are often used as
takeover defense.These shares may be
assigned very high liquidation value
that must be redeemed in the event of
a change of control or may have
enormous supervoting powers.

V Share August, 2008 31

SIMPLE & BASICS ACADEMIC CORNER

Saving Vs. Investing

Traditionally, saving has been viewed as quite different from investing. In most savings alternatives,
the initial amount of capital or cash remains constant, earning guaranteed rates of interest.

T he capital value of investments
can go up or down. Returns are
not guaranteed. However,
creation of money market funds and
deregulation of the banking industry
have resulted in a variety of savings
options that earn variable rates of
return.
Savings provide funds for emergencies
and for making specific purchases in
the relatively near future (generally
within two years). The primary goal is
to store funds and keep them safe.
This is why savings are generally
placed in interest-bearing accounts
that are safe (such as those insured or
guaranteed by the federal government)
and liquid (those in the form of cash or
easily changed into cash on short
notice with minimal or no loss).
However, these generally have low
yields. Because of the opportunities for
earning a higher return with a relatively
small pool of funds, some financial
experts suggest that savers consider
sligh tly higher risk (but liquid)
alternatives for at least part
of their savings.
Saved money is
insurance. It is
insurance against risk,
against losing your
job, against having a
major unexpected
repair bill or medical
expense in the family.
It is the backbone of you
and your family’s financial
well-being. Saved money grants you
financial security. And the more you
save, the more financial secure and
independent you will be.
The goal of investing is generally to
increase net worth and work toward
long-term goals. Investing involves
risk. Risk of your stocks losing money,
or even going bankrupt (Enron, MCI,
the airlines, etc. etc.). Risk of interest
rates rising, and bond prices falling.
Risks of your broker swindled you, or
coerced you though his sales pitch to
buy speculative investments. Risks of
the economy. Risks of a particular
industry. Risk of losing your principal.
Risk of losing it all, and then some
(such as with margin calls)

T
hese days, you can't retire without using the returns from investments. You can't count on your social security checks to
cover your expenses when you retire. It's barely enough for people who are receiving it now to have food, shelter and
utilities. That doesn't account for any care you may need or in the even that you need to take advantage of such funds
much earlier in life. It is important to have your own financial plan. There are many kinds of investments you can make
that will make your life much easier down the road.

The following are brief descriptions for beginning investors to familiarize themselves with different kinds of investment options:

Life Insurance
Life Insurance policies are another kind
of investment that is fairly popular. It is a
way to ensure income for your family
when you die. It allows
you a sense of security
and provides a valuable
tax deduction. Different Kind of Investments
Stocks
Stocks are a unique kind of investment
because they allow you to take partial
ownership in a company. Because of
this, the returns are potentially bigger
and they have a history of being a wise
way to invest your money.
Bonds
A bond is basically a promise note from
the government or a private company.
You agree to give them a set amount of
money as a loan and they keep it for a
set number of years with a
predetermined amount of interest. This is
typically a safe bet and one that is a
good investment for a first time investor
because there is little risk of losing your
money.
Mutual Funds
Mutual funds are a kind of investment
that are based on the gains and losses
of a shareholder. Basically one person
manages the money of several or many
investors and invests in a list of various
stocks to lessen the effect of any losses
that may occur.
Money Market Funds
A good short-term investment is a
Money Market Fund. With
this kind of investment you
can earn interest as an
independent shareholder.
Real Estate
Real Estate is a tangible kind of
investment. It includes your land and
anything permanently attached to your
piece of property. This may include your
home, rental properties, your company
or empty pieces of land. Real estate is
typically a smart and can make you a lot
of money over time.

32 V Share August, 2008

 Global Economic Corner

GLOBAL INDEX RETURN (%)

Current value
One Week One Month Three Month Six Month One Year
Country Global Indices as on
Return Return Return Return Return
July 23, 2008
India Sensex 14942.28 -1.56 -9.91 5.78 3.43 0.89
US Dow Jones 11632.38 -0.72 3.53 5.44 2.52 1.65
US S & P 500 Index 1282.19 -0.61 -0.17 2.73 1.31 1.41
US NASDAQ 2325.88 -0.80 -1.41 1.42 0.60 0.92
US NYSE Composite Index 8580.57 -0.49 0.93 2.80 1.12 0.98
Japan NIKKIE 225 13312.93 -0.37 1.27 1.41 0.53 2.34
China A-Share Index 2976.89 0.23 -3.59 9.83 8.26 4.77
Britain FTSE 100 5449.90 -0.38 3.23 3.80 1.36 1.39
China(Hong Kong) Hang Seng 23134.55 -0.68 -4.46 3.84 0.52 0.48
Singapore Straits Times Index 2978.98 -0.35 -1.06 1.95 0.09 1.67
South Africa KOSPI Composite Index 1591.76 -0.28 5.22 4.79 0.51 1.86
Taiwan TSEC weightage Index 7309.83 -0.25 2.92 6.99 0.77 2.29
Malaysia Composite Index 1139.41 0.07 4.14 3.99 3.48 1.68
Brazil IBOVESPA Sao Paulo 59420.86 0.32 9.42 4.85 0.37 -0.50
Indonesia Composite Index 2225.84 0.23 5.54 1.29 2.97 0.24
Australia S & P/ASX 200 Index 5105.30 -0.51 2.15 -3.18 1.78 1.67
France CAC 40 4408.74 -0.87 0.59 4.43 1.82 2.39
Germany DAX 6536.09 -0.74 -1.80 2.23 0.92 1.43

STRAITS TIMES INDEX

Top 5 Gainers Top 5 Losers
Current Price as on Current Price as on
Company Name % Change Company Name % Change
July 24, 2008 July 24, 2008
CITYDEV 11.34 4.71% Jardine C&C 16.92 0.70%
NOL 3.12 5.74% Gen Int 0.56 0.88%
Noble Grp 2.06 4.19% JSH 500US$ 16.94 0.24%
Olam 2.22 3.48% SIA Engg 3.33 0.60%
Yanlord 2.02 5.16% THBEV 0.225 0.00%

HANG SENG INDEX

Top 5 Gainers Top 5 Losers
Current Price as on Current Price as on
Company Name % Change Company Name % Change
July 24, 2008 July 24, 2008
CHINA UNICOM 15.18 4.17% HK EL HOLDINGS 45.40 0.22%
PETROCHINA -H- 10.08 4.00% HANG SENG BK 151.80 0.13%
CNOOC 11.10 4.80%
SWIRE PACIFIC -A- 85.05 0.18%
CHINA NETCOM GROUP 22.40 4.48%
CH SHENHUA ENGY -H- 29.25 6.25% LI & FUNG 26.30 0.00%

FTSE 100 INDEX

Top 5 Gainers Top 5 Losers
Current Price as on Current Price as on
Company Name % Change Company Name % Change
July 24, 2008 July 24, 2008
BT GROUP 202.50 -0.12% BRITISH AIRWAYS 242.00 -8.07%
COBHAM 206.00 -0.12% BRITISH ENERGY 728.50 -6.20%
CAPITA GRP 670.00 -0.15% EURASIAN NATURAL 949.00 -6.50%
CABLE & WIRELESS 164.20 -0.18% HBOS 301.50 -15.52%
HAMMERSON REIT 971.50 -0.15% INTERCONT HOTELS 695.00 -5.70%

V Share August, 2008 33

 Global Economic Corner

Financial and Economic Indicators

Trade, exchange rates, budget balances and interest rates

Current-account balance Currency units, per$ Budget Interest rates, %

Trade balance**
Latest balance %
latest 12 % of GDP July 3-month 10-year govt
12 months, Year ago of GDP
months, $ bn 2008*** 21th 2008 latest bonds, latest
$bn 2008***
United States -835.2 May -710.7 Q1 -4.9 - 0 -2.40 2.31 3.93
Japan +101.0 May +215.1 May 4.1 106.74 122.00 -2.7 0.75 1.57
China +248.7 Jun +371.8 2007 9.3 6.83 7.56 0.4 4.42 4.66
Britain 185.4 May -102.4 Q1 -4.1 0.50 0.49 -3.6 5.75 4.87
Canada +45.7 May +14.5 Q1 0.8 1.00 1.04 0.2 2.21 3.75
Euro area +17.3 Apr -2.5 Apr -0.3 0.63 0.72 -0.9 4.96 4.38
Austria +0.8 Apr +14.8 Q1 3 0.63 0.72 -0.4 4.96 4.59
Belgium +12.3 Mar -1.1 Mar 1.6 0.63 0.72 -0.5 5.03 4.75
France -66.3 May -41.6 May -6.6 0.63 0.72 -2.9 4.96 4.60
Germany 279.0 May +269.1 May 6.3 0.63 0.72 1.2 4.96 4.39
Greece -61.8 Apr -46.4 Apr -13.9 0.63 0.72 -2.6 4.96 4.39
Italy -12.7 Apr 57.8 Apr -2.6 0.63 0.72 0.7 4.96 4.60
Netherlands +60.4 May +50.7 Q1 6 0.63 0.72 0.7 4.96 4.60
Spain -149.4 Apr -160.6 Apr -9.5 0.63 0.72 -1.1 4.96 4.71
Czech Republic +5.0 May -3.6 May -2.6 14.49 20.50 -2.2 4.11 4.75
Denmark +4.8 May +3.5 May 0.9 4.70 5.39 3.8 5.70 4.67
Hungary +0.5 May -7.2 Q1 -5.9 144.33 178.00 -4.2 8.54 8.60
Norway +7.9 Jun +68.8 Q1 17.1 5.07 5.73 17.7 6.46 4.88
Poland -17.4 Apr -20.3 Apr -4 2.03 2.72 -2 6.60 6.37
Russia +164.1 May +109.9 Q2 6 23.21 25.40 3.6 11.00 6.67
Sweden +18.8 May +40.4 Q1 8.1 5.95 6.64 2.4 4.23 4.22
Switzerland +14.6 May +91.4 Q1 15.1 1.02 1.20 0.9 2.80 3.08
Turkey -69.7 May 43.0 May -6.4 1.19 1.28 -2.7 19.15 7.41*
Australia -21.3 May 61.4 Q1 -5.5 1.03 1.14 1.4 7.77 6.32
Hong Kong -26.0 May +26.6 Q1 9.3 7.80 7.82 3 2.22 3.38
India -85.0 May -17.5 Q1 -3 42.59 40.40 -3.4 9.00 9.94
Indonesia +38.0 May +10.9 Q1 2.3 9193.58 9100.00 -1.8 9.62 7.66*
Malaysia +35.9 May +30.6 Q1 14 3.24 3.45 -3.1 3.70 4.26*
Pakistan -20.7 Jun -10.5 Q1 -8 70.62 60.40 -6.2 13.94 12.13*
Singapore +28.5 Jun +35.8 Q1 23.3 1.35 1.52 1 1.14 3.15
South Korea +1.5 Jun +1.7 May -0.8 1018.39 916.00 1.1 5.52 5.98
Taiwan +13.8 Jun +32.2 Q1 5.3 30.36 32.80 -1.9 2.75 2.56
Thailand +7.9 May +13.2 May -0.4 33.36 33.50 -3 3.75 5.36
Argentina +11.4 May +7.9 Q1 2.9 3.07 3.10 1.7 16.25 na
Brazil +30.8 Jun -15.2 May -1.1 1.58 1.86 -1.6 12.17 6.16*
Chile +18.9 Jun +4.3 Q1 0.5 496.33 516.00 8.9 6.84 4.42*
Colombia +0.4 Apr -5.0 Q1 -3.7 1802.34 1927.00 -1.6 9.65 6.08*
Mexico -8.9 May -4.8 Q1 -0.8 10.17 10.70 -0.1 8.02 9.22
Venezuela +30.1 Q1 +26.7 Q1 10.6 2.15 4.23 2.4 17.26 6.55*
Egypt -22.2 Q1 -0.1 Q1 0.2 5.39 5.68 -7.1 10.01 5.49*
Israel -13.4 Jun +4.4 Q1 0.2 3.45 4.26 -1.3 3.71 5.64
Saudi Arabia 150.8 2007 +95.0 2007 34.6 3.67 3.75 21 3.70 na
South Africa -11.0 May 22.3 Q1 -8 7.56 6.96 0.4 12.45 10.26

** Merchandise trade only.

*** The Economist poll or Economist Intelligent Unit forecast Un-official exchange rate
*Dollar-denominated bonds

34 V Share August, 2008

ISE
Shaping future investors
1
A monthly statistical compendium from the ISE
The following benchmarks have been kept while compiling the
information on the companies :

a) Large Cap Stocks (50) – BSE Market Capitalisation

greater than Rs. 2476 Crore

b) Mid Cap Stocks (30)– BSE Market Capitalisation

between Rs.418 Crore to Rs.2476 Crore.

Research Cell incorporating financial data on large, mid

and small cap companies belonging to the Indian c) Small Cap Stocks (20) – BSE Market Cap. between Rs.53
corporate sector Crore to Rs.417 Crore.

Concepts and definitions of terminology of Capital Market

Face Value (F.V.) The nominal value of scrip stated by the issuer.
Book Value (B.V.) Book Value is the net worth (equity capital plus reserves and surplus) divided by the number of
shares outstanding.
Market Price (M.P.) The current market price of the security traded on BSE. The market price is the closing price as
stated on the bourses.
Market Capitalization (M. Cap.) It is defined as the value of a corporation as determined by the market price of its issued and
outstanding common stock. It is arrived by multiplying the closing prices of shares with fully
diluted equity capital.
Volume The average quantity of shares transacted over a period of 15 days on BSE and NSE.
52 weeks High/Lows The 52 weeks High/Lows represents the highest and the lowest points attained by a share
during the immediately preceding 52 weeks.
Price to 52 Week High/Low (P52WH/L) It has been arrived by dividing the current market price of the stock by 52 Week High/Low. It
indicates how the stock has performed over the period of 52 Weeks. To interpretate P52WH,
the lower the ratio, the more unattractive the stock. Similarly, the higher the ratio for P52WL,
the more attractive the stock.
Earning Per Share (EPS) EPS is net profit calculated on a trailing 12 months basis (aggregate net profit of four
consecutive quarters) divided by fully diluted equity capital.
Price to Earning Ratio (P/E) It has been arrived at by dividing the day's closing price of a scrip by its earning per share (EPS).
Promoters Stake It is the percentage share holding of promoters in the equity capital. It includes government's
holding in case of public sector undertaking.
Beta Beta is the shares sensitivity to market movements. It indicates how much the scrip moves for
a unit change in the market scrip. Beta could be positive or negative. A negative beta indicates
that the share moves in a direction opposite to the market. The beta of the index is 1. A higher
beta indicates the stock's movements are sharper than that of the market index.
Stock return Stock return tells about how much return a particular stock has given over the past 1-month, 3-
months and 1-year.
Equity It is defined as the latest subscribed equity capital.
Networth Networth determines the value of the company. It is calculated as the difference between total
asset and total liabilities. It is composed of primarily of all the money that has been invested
since its inception, as well as the retained earning for the duration of its operation.
Book Closure A company closes its register of members for updating the records to facilitate payment of
dividends or issue of rights of bonus shares. Book closure is the period during which this
process is done and deliveries are not effected in the clearing house.
Dividend Dividend is defined as the distribution of a portion of a company's earnings, decided by the
board of directors, to its shareholders.

V Share August, 2008 35

 Ise 100 A s t a t i s t i c a l c o m p e n d i u m A s t a t i s t i c a l c o m p e n d i u m Ise 100
Large Cap Companies Large Cap Companies
Volume 52 Week Price / 52 Week Return
Prom.
BSE Equity Net Net Book OPM ROCE RONW
NSE Symbol Company Name Industry M. Cap High Low High Low Beta 1 Year Div (%)
S.n. F.V B.V M.P BSE NSE EPS P/E 1 Month 3 Month Paid Up Reserve PAT
Stake
Code (%) Worth Sale Closure (%) (%) (%)
1 500312 ONGC ONGC Oil Exploration / Allied 10 325.84 994.90 212796.18 525549 1721867 1386.90 770.00 0.72 1.29 78.09 12.74 74.14 0.855 16.32 -5.70 6.49 2138.89 67554.61 61923.93 56635.58 15642.92 Sep 310.00 44.51 33.20 27.00
2 532555 NTPC NTPC Power Generation 10 63.84 190.25 156869.88 1893412 5049711 291.00 148.75 0.65 1.28 8.99 21.16 89.50 0.714 22.19 -1.22 13.45 8245.50 44393.10 49253.50 32631.70 6864.70 Sep 32.00 39.51 15.63 14.50
3 532454 BHARTIARTL Bharti Airtel Telecommunications 10 106.34 816.00 154878.43 804890 3478115 1149.00 688.00 0.71 1.19 32.64 25.00 66.50 0.838 8.71 -11.81 -13.82 1897.91 18285.90 20181.73 25761.11 6244.19 Jul/Aug 0.00 41.72 34.88 39.53
4 500112 SBIN St Bk of India Banks 10 772.37 1543.80 98012.77 522766 1340684 2396.54 1007.00 0.64 1.53 103.27 14.95 59.41 0.827 27.38 -11.79 4.33 631.47 48401.19 49032.66 48950.31 6729.12 Jun 215.00 0.00 0.00 16.75
5 500209 INFOSYSTCH Infosys Tech. Computers 5 235.70 1603.70 91786.17 452544 2530289 2140.00 1212.20 0.75 1.32 82.19 19.51 16.51 0.925 -10.56 -4.91 -19.41 286.00 13204.00 13490.00 15648.00 4470.00 May/Jun 665.00 36.20 41.52 36.26
6 500103 BHEL BHEL Electric Equipment 10 220.10 1772.00 86742.94 447263 1617969 2925.00 1325.25 0.61 1.34 60.36 29.36 67.72 1.124 27.39 -5.07 -0.99 244.76 10284.69 8788.26 17320.74 2414.70 Sep 245.00 21.31 45.16 30.02
7 532174 ICICIBANK ICICI Bank Banks 10 417.48 738.25 82176.08 1581061 6709825 1465.00 515.10 0.50 1.43 35.60 20.74 0.00 0.872 4.69 -19.42 -23.05 1112.68 45357.53 46470.21 30788.34 4157.73 Jul 110.00 0.00 0.00 11.75
8 500510 LT Larsen & Toubro Engineering 2 325.90 2766.65 80896.85 561791 1331849 4670.00 2100.00 0.59 1.32 72.21 38.31 0.00 1.136 19.74 -6.89 7.53 56.65 9470.71 5740.50 17597.83 1403.02 650.00 12.83 30.92 27.11
9 500875 ITC ITC Cigarettes 1 31.85 191.70 72244.06 648177 4662937 239.40 151.70 0.80 1.26 7.66 25.03 0.00 1.098 0.34 -9.89 15.59 376.86 11624.69 12001.55 13920.76 3120.10 Jul 350.00 23.58 40.32 27.88
10 500010 HDFC HDFC Finance 10 420.53 2380.20 67647.66 221944 1094460 3257.00 1690.00 0.73 1.41 80.94 29.41 0.00 0.965 5.03 -11.65 21.36 284.03 11667.65 11947.34 8812.61 2436.25 Jul 250.00 96.63 11.90 27.84
11 500113 SAIL SAIL Steel 10 55.84 146.00 60303.84 2309424 7876020 292.50 117.55 0.50 1.24 18.50 7.89 85.82 1.476 -0.14 -17.61 -4.64 4130.40 18933.17 17313.15 34087.98 6202.29 Aug 31.00 27.78 51.28 41.47
12 507685 WIPRO Wipro Computers 2 79.02 407.75 59617.13 169484 1253511 552.00 325.00 0.74 1.25 20.06 20.33 79.45 1.122 -13.28 -12.54 -18.28 292.30 11260.40 11552.70 17492.60 3063.30 Jul 300.00 22.89 28.71 29.36
13 500180 HDFCBANK HDFC Bank Banks 10 272.29 1205.75 51223.88 289359 1636808 1825.00 890.00 0.66 1.35 36.22 33.29 19.42 0.743 13.71 -19.51 -2.89 354.43 11142.80 11497.23 10115.00 1590.18 Jun 85.00 0.00 0.00 17.74
14 500696 HINDUNILVR Hind. Unilever Personal Care 1 6.53 231.05 51029.70 262131 2165910 256.00 170.00 0.90 1.36 8.21 28.14 52.10 1.069 7.72 -7.49 14.44 217.75 1220.82 1438.57 13683.19 1925.47 Mar/Apr 900.00 15.25 97.61 82.89
15 500470 TATASTEEL Tata Steel Steel 10 298.78 667.00 48729.69 1557094 2627355 969.80 471.07 0.69 1.42 62.15 10.73 33.94 1.467 -6.22 -16.97 6.37 580.67 21097.43 13949.09 17453.62 4222.15 Jul 155.00 37.11 36.79 35.62
16 530965 IOC Indian Oil Refineries 10 344.58 400.55 47760.38 100941 205010 809.90 303.00 0.49 1.32 58.39 6.86 80.35 0.800 13.86 -8.30 -4.59 1168.01 39893.88 34832.93 216447.02 7499.47 Sep 190.00 5.40 17.51 19.47
17 500900 STER Sterlite Inds. Metal - Copper 2 185.76 644.45 45672.17 380199 1411776 1140.00 503.00 0.57 1.28 14.07 45.80 62.47 1.713 -7.82 -22.90 -3.88 111.70 13023.32 4457.93 11716.35 784.03 Sep 200.00 9.95 16.32 18.32
18 500111 RELCAPITAL Reliance Capital Finance 10 251.71 1349.40 33145.31 3756716 4820064 2925.00 822.50 0.46 1.64 41.75 32.32 53.39 1.581 43.01 -7.81 8.40 246.16 5937.11 5161.23 887.00 646.18 Jun 35.00 88.73 14.26 14.00
19 532667 SUZLON Suzlon Energy Electric Equipment 2 46.31 220.30 33005.35 3192193 7103208 460.00 174.50 0.48 1.26 9.30 23.69 65.89 1.398 -7.94 -23.85 -21.43 299.39 6638.05 6937.44 6926.01 1265.71 Jul 50.00 25.06 22.20 26.68
20 532286 JINDALSTEL Jindal Steel Steel 1 240.78 2104.10 32550.43 169037 447020 3356.00 708.00 0.63 2.97 79.96 26.31 58.60 1.290 14.22 -9.56 160.93 15.40 3709.37 2477.41 3503.10 702.99 Sep 360.00 37.29 21.15 32.58
21 524715 SUNPHARMA Sun Pharma. Pharmaceuticals 5 203.15 1443.80 29903.99 29395 208651 1515.00 886.00 0.95 1.63 48.96 29.49 63.72 0.669 9.09 3.45 49.69 96.70 4104.06 2448.12 2243.18 628.93 Aug/Sep 135.00 30.21 19.30 32.15
22 507878 UNITECH Unitech Construction 2 13.21 169.25 27476.05 3099828 7425400 546.80 135.10 0.31 1.25 6.17 27.43 74.56 0.274 -0.82 -41.41 -40.48 162.34 1819.14 1161.00 2503.97 983.55 Jul 25.00 61.62 54.16 141.97
23 532215 AXISBANK Axis Bank Banks 10 244.47 765.40 27455.66 596975 3348797 1291.00 534.00 0.59 1.43 34.18 22.39 42.43 0.794 12.74 -15.57 23.88 357.71 8410.79 8768.50 7005.32 1071.03 May/Jun 60.00 0.00 0.00 17.61
24 500400 TATAPOWER Tata Power Co. Power Generation 10 324.05 1127.15 26007.86 370784 980306 1641.00 666.70 0.69 1.69 25.48 44.24 33.39 0.797 0.85 -15.73 64.69 197.92 7246.36 6033.11 4949.74 696.80 Aug/Sep 95.00 21.59 8.65 12.03
25 532234 NATIONALUM Natl. Aluminium Aluminium 10 137.74 395.90 25508.23 175881 675173 565.90 237.50 0.70 1.67 25.32 15.64 87.15 1.107 6.83 -11.29 38.35 644.31 8230.14 7695.22 5955.59 2381.38 Sep 75.00 60.86 53.96 35.05
26 500376 SATYAMCOMP Satyam Computer Computers 2 109.35 377.70 25409.77 686548 5351664 544.00 305.00 0.69 1.24 28.28 13.36 8.63 1.046 -16.82 -15.05 -22.43 134.10 7221.71 7355.81 8137.28 1715.74 Aug 175.00 25.63 29.57 26.12
27 500390 RELINFRA Reliance Infrast Power Generation 10 433.80 1014.50 23995.97 2563564 4403945 2631.70 660.05 0.39 1.54 45.86 22.12 36.66 0.966 11.36 -25.34 30.38 228.57 10024.16 8641.31 5769.30 801.45 Jul 53.00 23.62 8.69 10.23
28 500188 HINDZINC Hind.Zinc Metal - Zinc 10 280.42 552.05 23325.77 64245 123376 969.00 462.50 0.57 1.19 104.04 5.31 64.92 1.244 0.31 -17.57 -27.31 422.53 11426.00 7627.06 8547.42 4441.81 Aug 50.00 71.99 111.61 80.35
29 532532 JPASSOCIAT Jaiprakash Assoc Construction 2 33.37 172.80 20282.40 3633241 13529456 510.00 128.55 0.34 1.34 5.10 33.88 44.46 1.329 11.30 -29.67 2.16 219.24 3681.48 2564.09 3461.70 414.90 Aug 36.00 28.94 12.64 17.62
30 500002 ABB ABB Electric Equipment 2 76.06 918.65 19466.19 54871 267562 1670.00 711.00 0.55 1.29 24.67 37.24 52.11 0.919 3.13 -21.55 -19.11 42.38 1569.43 1611.81 5930.31 491.67 May/Jun 110.00 12.63 55.35 35.21
31 500550 SIEMENS Siemens Electronics 2 47.14 556.35 18760.12 183451 518967 1125.00 363.00 0.49 1.53 16.37 33.99 55.18 1.178 34.66 -13.64 -17.29 33.72 1521.96 1589.40 7724.18 596.54 Jan 240.00 10.41 58.92 39.82
32 500440 HINDALCO Hindalco Inds. Aluminium 1 132.32 151.90 18639.65 765144 2758167 223.30 132.50 0.68 1.15 23.31 6.52 31.42 1.232 4.94 -19.63 -17.18 104.33 16114.58 12418.04 18093.52 2564.33 Jul 170.00 21.82 21.86 23.29
33 500087 CIPLA Cipla Pharmaceuticals 2 48.21 232.50 18071.06 267070 900507 243.00 160.00 0.96 1.45 9.27 25.08 39.38 0.799 9.15 3.66 24.90 155.46 3591.39 3227.30 3438.24 668.03 Aug 100.00 26.11 28.28 25.69
34 532500 MARUTI Maruti Suzuki Automobiles 5 291.27 607.00 17537.44 130764 584868 1252.00 530.50 0.48 1.14 58.74 10.33 54.21 1.204 -10.56 -17.67 -25.02 144.50 8270.94 6853.90 14696.30 1562.00 Aug/Sep 90.00 15.05 35.63 25.38
35 500359 RANBAXY Ranbaxy Labs. Pharmaceuticals 5 67.84 466.20 17438.68 589956 8246512 613.70 299.90 0.76 1.55 13.88 33.59 34.81 0.828 -11.25 -2.63 36.70 186.54 2350.68 2537.22 4428.56 617.72 May 170.00 21.67 15.00 25.28
36 500570 TATAMOTORS Tata Motors Automobiles 10 202.78 437.55 16874.55 156479 674164 840.00 374.00 0.52 1.17 46.63 9.38 33.40 1.192 -9.18 -31.54 -39.73 385.54 7434.91 7813.99 28529.40 2028.92 Jun 150.00 11.11 24.08 27.68
37 500300 GRASIM Grasim Inds. Diversified - Mega 10 887.12 1830.30 16778.36 18772 61971 4074.00 1625.00 0.45 1.13 214.19 8.55 25.19 1.206 -12.33 -30.90 -38.35 91.67 8040.52 8132.19 10278.68 2232.60 Jul/Aug 300.00 28.65 29.04 27.93
38 532296 GLENMARK Glenmark Pharma Pharmaceuticals 1 42.42 669.85 16752.95 117321 263023 730.00 292.50 0.92 2.29 15.33 43.70 52.14 0.750 7.94 11.72 94.57 24.01 1036.00 450.16 808.16 134.80 Sep 40.00 27.91 17.47 35.81
39 532461 PNB Pun. Natl. Bank Banks 10 341.98 507.95 16015.66 192454 546807 721.00 332.35 0.70 1.53 62.75 8.09 57.80 0.938 20.54 -8.66 -8.10 315.30 10467.35 10782.65 14265.02 2048.76 May/Jun 130.00 0.00 0.00 19.58
40 532149 BANKINDIA Bank of India Banks 10 168.05 292.65 15369.10 910258 2495858 466.00 189.00 0.63 1.55 37.59 7.79 64.47 1.272 35.11 -13.56 13.96 525.91 8300.38 8826.29 12355.22 2009.40 Jul 40.00 0.00 0.00 27.58
41 500182 HEROHONDA Hero Honda Motor Automobiles 2 149.53 747.80 14933.57 71775 265084 865.00 561.00 0.86 1.33 48.47 15.43 54.96 0.758 6.09 -7.37 6.88 39.94 2946.27 2470.06 9894.52 857.89 Jul 850.00 12.02 51.66 38.30
42 500790 NESTLE Nestle India Food And Dairy 10 43.40 1542.05 14868.45 18383 0 1880.00 1132.00 0.82 1.36 49.36 31.24 61.85 0.414 -6.55 -3.46 32.97 96.42 322.01 418.43 3500.65 413.81 Apr/May 330.00 19.31 152.33 102.51
43 500228 JSWSTEEL JSW Steel Steel 10 391.73 772.30 14445.87 306084 826572 1389.70 506.20 0.56 1.53 88.26 8.75 46.99 1.123 -19.66 -12.24 6.40 248.08 7140.24 7388.32 11391.05 1728.19 May 140.00 29.03 24.05 26.80
44 532281 HCLTECH HCL Technologies Computers 2 51.41 214.95 14323.19 83152 722771 336.00 180.00 0.64 1.19 17.79 12.08 67.54 0.889 -19.21 -17.77 -32.97 132.74 3292.28 3425.02 3768.62 1101.82 Dec 400.00 36.32 39.33 36.72
45 500483 TATACOMM Tata Comm Telecommunications 10 229.73 463.40 13206.90 74649 244947 783.00 332.00 0.59 1.40 9.77 47.43 76.24 1.444 33.89 -5.23 -1.91 285.00 6262.34 6547.34 3283.30 304.46 Jul/Aug 45.00 24.09 7.05 4.72
46 500295 SESAGOA Sesa Goa Mining / Minerals 10 709.13 3304.20 13005.33 178410 366142 4390.00 1686.10 0.75 1.96 512.67 6.45 51.18 1.194 0.13 -5.59 79.50 39.36 2751.77 2791.13 3602.16 1492.00 Jul 450.00 63.32 104.17 69.44
47 532432 MCDOWELL-N United Spirits Distilleries 10 203.37 1292.10 12941.67 24601 187031 2188.00 1006.55 0.59 1.28 35.00 36.92 36.57 0.768 -3.57 -23.28 -0.12 94.48 1936.76 1334.27 2741.01 494.02 Nov 25.00 10.95 18.34 26.12
48 500425 AMBUJACEM Ambuja Cem. Cement 2 30.61 84.10 12804.65 614592 1698501 160.90 68.70 0.52 1.22 6.93 12.14 46.47 0.978 4.02 -26.74 -34.48 304.48 4356.39 4660.87 5671.39 1769.10 Feb 175.00 34.30 42.49 29.02
49 532466 I-FLEX I-Flex Solutions Computers 5 335.88 1390.85 11646.98 81256 196441 2370.00 892.00 0.59 1.56 50.47 27.56 80.57 1.016 11.24 4.41 -38.67 41.64 2770.75 2358.31 1552.34 354.67 Aug 0.00 28.19 20.48 19.06
50 500303 ABIRLANUVO Aditya Birla Nuv Textiles - Rayon 10 383.82 1223.65 11624.68 38985 30347 2502.00 1035.00 0.49 1.18 24.98 48.99 40.19 0.667 -0.43 -14.26 -18.01 95.01 3551.32 3646.33 3886.68 243.07 Jul 57.50 16.10 8.41 7.18

36 V Share July, 2008 V Share July, 2008 37

 Ise 100 A s t a t i s t i c a l c o m p e n d i u m A s t a t i s t i c a l c o m p e n d i u m Ise 100
Mid Cap Companies Mid Cap Companies
Volume 52 Week Price / 52 Week Return
Prom.
BSE Equity Net Net Book OPM ROCE RONW
S.n. NSE Symbol Company Name Industry F.V B.V M.P M. Cap BSE NSE High Low High Low Beta 1 Year Div (%)
EPS P/E 1 Month 3 Month Paid Up Reserve PAT
Stake
Code (%) Worth Sale Closure (%) (%) (%)
1 532720 M&MFIN M & M Financial Finance - Investment 10 135.80 256.40 2484.52 12857 11796 368.00 212.00 0.70 1.21 17.50 14.65 61.61 0.655 -2.55 -6.68 3.66 95.29 1218.97 1314.26 1221.56 177.02 Jun/Jul 45.00 60.05 12.03 16.92
2 500020 BOMDYEING Bombay Dyeing Diversified 10 107.21 619.60 2392.28 502013 1118089 1065.00 480.00 0.58 1.29 2.20 281.64 47.10 1.446 -1.49 -26.38 6.35 38.61 375.31 395.02 485.14 35.93 Aug 50.00 18.22 6.24 9.25
3 517354 HAVELLS Havells India Electric Equipment 5 112.06 410.05 2375.01 30978 83193 749.90 309.00 0.55 1.33 24.12 17.00 62.48 0.831 11.56 -15.03 -19.67 28.96 620.07 649.03 2051.64 143.54 Jun/Jul 50.00 9.19 38.21 31.50
4 532356 TRIVENI Triveni Engg Ind Sugar - Integrated 1 26.17 91.85 2368.81 806272 1245792 195.70 48.00 0.47 1.91 1.74 52.79 66.94 0.371 13.33 -25.02 79.57 25.79 649.07 674.86 1907.99 75.43 Dec 40.00 11.59 8.07 8.47
5 532399 ADLABSFILM Adlabs Films Entertainment 5 147.03 507.10 2338.75 771212 1782872 1945.00 342.70 0.26 1.48 3.66 138.55 57.79 1.397 1.02 -30.95 -3.89 23.06 655.02 678.08 284.93 45.90 Aug 66.67 42.84 1.99 5.08
6 500459 PGHH P & G Hygiene Personal Care 10 89.70 705.55 2290.22 1076 824 844.95 645.30 0.84 1.09 37.22 18.96 68.73 0.451 -6.98 -6.99 -9.58 32.46 258.72 291.18 539.64 89.82 Sep/Oct 200.00 27.84 51.61 31.86
7 500308 NIRMA Nirma Detergents 5 162.57 143.40 2282.07 4104 5303 277.00 127.00 0.52 1.13 9.76 14.69 77.17 0.540 0.84 -15.97 -15.22 79.39 2507.56 2426.81 2243.97 108.41 Sep 80.00 16.38 8.10 7.30
8 524794 MATRIXLABS Matrix Labs. Pharmaceuticals 2 43.98 144.35 2231.65 13574 11728 265.00 125.00 0.54 1.15 4.16 34.70 76.13 1.199 -1.30 -17.77 -42.47 30.82 648.99 969.70 756.63 99.61 Jul 0.00 19.30 11.23 10.86
9 523838 SIMPLEXINF Simplex Infrastr Construction 2 147.99 449.05 2220.55 3257 6992 774.00 330.00 0.58 1.36 18.22 24.65 49.42 0.875 -4.46 -24.91 20.83 8.61 721.92 275.87 1708.27 53.71 Sep 80.00 9.28 16.38 21.10
10 500032 BAJAJHIND Bajaj Hindustan Sugar - Integrated 1 101.44 153.45 2169.78 968699 2587823 399.50 115.55 0.38 1.33 6.89 22.27 45.65 1.413 -14.73 -35.90 -0.10 14.14 1420.19 1434.33 1699.52 45.65 Feb 60.00 17.48 4.85 3.26
11 500173 GUJFLUORO Guj. Flourochem. Industrial Gas 1 85.55 185.35 2146.35 12504 4872 400.00 152.90 0.46 1.21 27.67 6.70 66.45 0.911 1.40 -15.11 -44.34 11.58 979.11 711.53 572.94 241.66 Sep 250.00 58.36 35.39 35.73
12 532508 JSTAINLESS Jindal Stainless Steel 2 115.07 127.75 2071.47 31498 45998 243.80 112.00 0.52 1.14 12.96 9.86 45.93 1.638 -1.31 -15.84 -24.21 27.64 1833.40 1401.77 4799.44 353.01 Aug 100.00 17.92 19.62 29.28
13 532300 WOCKPHARMA Wockhardt Pharmaceuticals 5 93.75 187.25 2049.26 42862 45870 448.00 169.85 0.42 1.10 17.41 10.76 73.64 0.794 -4.78 -38.52 -51.10 54.72 971.31 1026.03 1221.80 213.88 Apr 225.00 27.87 17.72 21.58
14 526991 ATLASCOPCO Atlas Copco (I) Compressors 10 147.66 885.35 1997.35 1257 0 1799.00 680.00 0.49 1.30 36.21 24.45 83.77 0.913 -26.60 -20.92 -1.79 22.56 310.55 333.11 968.73 81.01 Apr 40.00 14.96 34.00 26.97
15 500265 MAHSEAMLES Mah. Seamless Steel - Seamless 5 159.29 280.05 1975.47 35908 54614 671.90 245.00 0.42 1.14 31.40 8.92 46.26 0.997 -4.08 -4.04 -56.32 34.97 1088.34 924.10 1389.97 233.89 Sep 110.00 24.51 36.74 34.96
16 500038 BALRAMCHIN Balrampur Chini Sugar - Integrated 1 36.44 77.30 1975.02 1096973 3041683 127.90 49.90 0.60 1.55 0.00 0.00 35.67 1.036 -6.87 -24.77 15.37 24.82 905.60 863.99 1375.92 -41.84 Feb 0.00 7.31 0.00 0.00
17 531349 PANACEABIO Panacea Biotec Biotechnology 1 104.37 293.05 1957.57 42222 84760 447.00 273.05 0.66 1.07 19.93 14.70 65.22 0.411 -18.36 -21.50 -23.91 6.58 690.53 539.09 831.34 146.81 Sep 100.00 29.84 28.47 41.40
18 500160 GTL GTL Telecommunications 10 97.67 206.95 1957.13 107895 221317 317.00 195.00 0.65 1.06 11.69 17.70 44.15 0.834 -3.02 -22.17 -12.09 94.57 829.05 923.62 1433.33 121.29 Jun 30.00 20.24 14.03 9.04
19 532313 MAHLIFE Mahindra Lifespa Construction 10 209.20 470.65 1920.72 15315 35069 907.00 336.00 0.52 1.40 13.87 33.93 51.08 1.788 -3.18 3.07 -21.61 40.81 812.94 853.75 172.12 65.39 Jul 25.00 49.88 10.29 7.99
20 500102 BALLARPUR Ballarpur Inds. Paper 2 34.67 34.10 1894.26 293720 345727 38.79 23.01 0.88 1.48 4.31 7.91 38.99 0.942 1.79 13.67 37.11 185.73 1814.70 2000.43 2167.78 250.77 Nov/Dec 30.00 24.32 13.22 13.80
21 509550 GAMMONIND Gammon India Construction 2 111.93 216.20 1890.67 404318 69442 845.00 204.00 0.26 1.06 9.85 21.95 31.11 0.848 -22.76 -48.12 -55.85 17.69 961.32 897.47 1859.18 44.48 Sep 25.00 12.20 16.68 5.07
22 500710 ICI ICI (India) Paints / Varnishes 10 198.41 480.65 1844.73 838 4289 678.90 450.00 0.71 1.07 31.28 15.37 54.33 0.451 -12.85 -12.08 -5.40 38.38 723.12 761.50 1025.84 60.21 Jul 80.00 10.00 11.46 7.39
23 523395 3MINDIA 3M India Trading 10 257.60 1612.60 1817.40 569 864 2499.50 1494.35 0.65 1.08 61.84 26.08 76.01 0.876 -4.75 -14.05 -14.24 11.27 279.04 290.31 608.41 67.68 Apr 0.00 17.45 41.61 26.33
24 500097 DALMIACEM Dalmia Cement Cement 2 132.94 220.25 1780.72 2551 2000 620.00 206.20 0.36 1.07 39.06 5.64 54.85 0.761 -13.71 -26.25 -40.38 16.17 1058.62 1074.79 1467.63 347.15 Jul 200.00 29.54 19.00 27.38
25 500674 AVENTIS Aventis Pharma Pharmaceuticals 10 300.28 771.50 1776.76 389 1036 1399.00 679.90 0.55 1.13 58.88 13.10 60.40 0.594 1.27 -8.42 -41.32 23.03 668.52 691.55 864.03 144.42 Apr 160.00 25.90 34.73 22.50
26 503031 PENINLAND Peninsula Land Construction 2 33.57 62.95 1757.56 354186 279698 167.60 46.00 0.38 1.37 5.02 12.54 53.47 0.743 8.72 -40.22 -35.47 42.15 881.44 430.29 319.42 132.04 Aug 40.00 56.76 36.91 70.10
27 500680 PFIZER Pfizer Pharmaceuticals 10 217.37 575.05 1715.95 8190 2446 850.00 526.20 0.68 1.09 45.49 12.64 41.23 0.508 1.21 -13.24 -26.60 29.84 618.80 648.64 710.04 338.93 Apr 275.00 26.19 37.16 27.28
28 500165 KANSAINER Kansai Nerolac Paints / Varnishes 10 220.29 615.35 1658.37 500 942 911.00 476.30 0.68 1.29 38.84 15.84 66.41 0.265 0.28 -9.27 -12.09 26.95 566.74 593.69 1404.14 119.79 Jun 120.00 13.10 26.16 21.70
29 517140 MOSERBAER Moser Baer (I) Computers 10 119.94 98.10 1651.02 117652 391384 344.80 88.15 0.28 1.11 0.00 0.00 16.29 0.411 -29.98 -45.00 -68.73 111.60 1850.36 2096.82 1981.19 109.79 Jul/Aug 15.00 29.03 6.53 5.35
30 500125 EIDPARRY EID Parry Sugar - Integrated 2 56.71 184.55 1647.11 8436 93628 258.20 116.00 0.71 1.59 0.00 0.00 45.92 0.817 -2.38 -27.81 38.34 17.85 488.33 506.18 616.45 -16.58 Jul 25.00 5.90 -0.61 -3.20

Small Cap Companies Small Cap Companies

Volume 52 Week Price / 52 Week Return

Prom.
BSE Equity Net Net Book OPM ROCE RONW
S.n. NSE Symbol Company Name Industry F.V B.V M.P M. Cap BSE NSE High Low High Low Beta 1 Year Div (%)
EPS P/E 1 Month 3 Month Paid Up Reserve PAT
Stake
Code (%) Worth Sale Closure (%) (%) (%)
1 500023 ASIANHOTEL Asian Hotels Hotels 10 291.69 471.80 1075.70 920 606 895.00 444.00 0.53 1.06 57.91 8.15 63.56 0.608 -11.40 -22.32 -38.82 22.80 642.26 373.21 413.78 91.50 Sep 100.00 43.58 28.89 26.87
2 531497 MADHUCON Madhucon Project Construction 2 135.59 290.70 1072.68 24011 9528 869.95 210.00 0.33 1.38 14.21 20.46 40.77 0.999 -22.70 -44.98 8.37 7.40 492.94 447.91 510.05 41.57 Aug/Sep 30.00 19.22 12.52 9.70
3 523367 DCMSRMCONS DCM Shriram Cons Diversified 2 69.03 60.35 1001.21 15298 25286 105.80 46.00 0.57 1.31 0.65 92.85 54.96 0.930 11.76 -10.72 -29.91 33.34 1111.99 551.83 2690.02 45.81 Aug 40.00 7.83 7.36 7.38
4 500043 BATAINDIA Bata India Leather / Synthetic 10 32.91 153.20 984.46 81511 274834 296.00 129.10 0.52 1.19 8.89 17.23 51.02 1.339 7.40 -7.93 -9.21 64.26 147.23 211.49 867.21 47.44 May/Jun 20.00 8.73 24.40 24.02
5 500041 BANARISUG Bannari Amman Sugar - Integrated 10 393.09 819.95 938.02 1464 368 1147.90 571.00 0.71 1.44 37.01 22.15 54.72 0.977 5.45 -4.69 8.60 9.54 438.25 415.27 793.22 90.29 Sep 70.00 18.88 21.40 25.77
6 501455 GREAVESCOT Greaves Cotton Engines 10 60.33 184.30 900.12 2723 4936 466.00 165.05 0.40 1.12 23.57 7.82 50.67 1.210 3.45 -27.18 -46.32 48.83 245.81 294.64 1063.36 122.32 Oct 70.00 14.65 54.08 48.34
7 503806 SRF SRF Textiles 10 134.40 130.70 887.32 144656 280603 207.40 90.50 0.63 1.44 21.83 5.99 42.12 1.674 7.04 -6.01 -9.36 68.90 844.58 913.48 1615.33 138.73 Jul 50.00 20.03 19.25 17.81
8 521070 ALOKTEXT Alok Inds. Textiles - Weaving 10 57.94 41.65 820.38 363968 629175 107.75 33.25 0.39 1.25 10.18 4.09 35.57 0.928 -16.95 -38.88 -27.94 170.37 944.23 1024.44 1805.94 164.86 Sep 14.00 26.74 10.14 17.92
9 500144 FINCABLES Finolex Cables Cables - Telephone 2 41.94 53.35 815.99 28611 40635 133.50 46.60 0.40 1.14 5.02 10.63 33.09 0.949 -8.10 -22.68 -40.76 30.59 610.93 641.52 1382.33 88.93 Jul 75.00 10.50 15.86 14.56
10 515030 ASAHIINDIA Asahi India Glas Glass - Safety 1 18.41 47.50 759.53 31322 22091 137.40 45.00 0.35 1.06 0.78 60.90 55.24 0.628 -13.64 -22.95 -53.36 15.99 278.46 294.45 994.08 13.34 Jul 0.00 18.85 6.81 4.64
11 532129 HEXAWARE Hexaware Computers 2 47.38 50.95 731.64 259817 143623 140.55 46.25 0.36 1.10 5.81 8.77 23.58 0.501 -4.32 -30.54 -62.61 28.72 651.71 680.43 468.80 -10.76 Jun 40.00 24.34 14.02 14.10
12 532531 STAR Strides Arcolab Pharmaceuticals 10 99.17 172.05 689.06 15298 83935 328.00 112.00 0.52 1.54 0.00 0.00 23.37 0.889 13.94 -3.86 -44.18 35.00 357.11 195.33 392.55 -115.21 Jun 0.00 9.53 0.00 0.00
13 500171 GHCL GHCL Soda Ash 10 50.24 68.80 688.14 1000981 767218 208.40 44.30 0.33 1.55 9.71 7.09 40.42 0.925 15.53 -22.48 -44.00 99.59 402.52 422.17 1073.18 148.28 Jul 21.60 28.83 17.99 33.12
14 532343 TVSMOTOR TVS Motor Co. Automobiles 1 34.59 28.55 678.06 684260 474703 78.90 23.05 0.36 1.24 1.79 15.95 56.83 1.287 -8.35 -25.84 -53.54 23.75 797.84 809.27 3854.96 66.60 Aug 85.00 4.94 10.79 8.46
15 532630 GOKEX Gokaldas Exports Textiles - Readymade 5 131.28 190.05 653.39 993 1119 299.00 154.00 0.64 1.23 15.98 11.89 88.27 0.627 4.31 -11.00 -11.36 17.19 434.16 407.76 999.81 70.28 Aug 40.00 12.50 15.68 18.66
16 532390 TAJGVK TajGVK Hotels Hotels 2 37.15 94.20 590.63 4635 9709 205.00 90.15 0.46 1.04 10.68 8.82 74.64 1.185 -14.98 -36.07 -45.34 12.54 220.39 232.93 257.49 70.42 Jul 160.00 47.61 39.53 33.62
17 500403 SUNDRMFAST Sundram Fasten. Fasteners 1 20.09 22.00 462.22 30148 44341 69.00 21.35 0.32 1.03 3.21 6.85 49.53 0.632 -11.82 -34.81 -60.50 21.01 401.10 374.76 1199.44 71.86 Aug 130.00 12.54 17.53 20.57
18 500189 HINDUJAVEN Hinduja Ventures Computers 10 249.39 211.85 435.35 10869 17276 884.00 181.60 0.24 1.17 18.08 11.72 65.82 1.271 -4.34 -44.42 -52.28 20.54 491.95 573.19 191.30 689.12 Sep 300.00 18.81 4.21 2.84
19 500135 ESSELPACK Essel Propack Packaging 2 35.93 27.40 429.08 69594 78176 80.70 23.25 0.34 1.18 2.17 12.63 58.92 0.566 0.18 -30.90 -55.23 31.31 531.36 562.67 310.18 37.29 May 60.00 34.62 11.04 6.71
20 505010 AUTOAXLES Automotive Axles Auto Ancillaries 10 83.12 230.00 347.53 1024 802 670.00 193.10 0.34 1.19 36.20 6.35 71.04 0.645 -6.96 -34.33 -53.02 15.11 110.49 125.60 607.21 53.63 Jan 125.00 15.36 47.49 48.59

38 V Share July, 2008 V Share July, 2008 39

DOMESTIC NEWS CORNER
Sebi for easing financial reporting norms
T
he market regulator Securities
and Exchange Board of India
(Sebi) has offered some relief to
listed entities by proposing amend-
ments to the Clause 41 of the Listing
Agreement exactly a year after
amending it last July. The clause
suggests financial reporting guidelines
to companies listed on stock
exchanges.
The timeline mandated to submit
audited or unaudited quarterly and
year-to-date standalone financial
results to the stock exchange has
been extended to 2 months from the
existing period of one month of the
end of the quarter.
However, the extension is only for
Delisting to be made easier for
who listed in multiple stock exchages
T
he companies that are listed on
multiple stock exchanges and with
to delist from one of them will find
it easier to do so once the new delisting
norms are in place. The guidelines are
likely to allow companies to delist after
taking the clearance of their board of
directors only, and without going through
the tedious process of getting
shareholders' approval. The ministries of
finance and corporate affairs are
expected to meet soon to finalise the
guidelines.
As per the present draft guidelines, if a
company is listed on national exchange
as also regional exchanges, it has to take
the permission of its shareholders if it
proposes to delist from any one regional
exchange. It also has to make an offer to
buy-back equity from shareholders at that
stock exchange, even though it continues
to remain listed on the national exchange.
40 V Share August, 2008
those companies which opt to submit
the consolidated financial results in
addition to standalone financial results
to the exchanges.
Companies publishing both consoli-
dated and standalone results are
required to mention the standalone
figures for turnover, net profit after tax
(NPAT) and earning per share
(EPS) along with the existing require-
ment and these have to be accompa-
nied by a reference to the website
where the standalone results will be
available.
Sebi has said that limited review report
need not be placed before the
company's board again-prior to
submitting the same to the stock
exchange if the variation does not
exceed 10% or more. “The limited
review is proposed to be required only
for those companies, where the
variation between unaudited financials
and financials amended pursuant to
limited review for the same period,
exceeds 10% or more.”
The draft notification placed for public
comments in 2006 stipulates the
requirements thus: “Delisting of such
securities has been approved by three-
fourth of the shareholders in a general
body meeting and; the promoters or the
directors of the company commit to
purchase the outstanding securities of
the minority and non-promoter holders.”
These conditions in the 2006 draft are
proposed to be done away with n the
final draft as they only make the process
cumbersome while companies prefer to
remain listed only on the two national
exchanges. However, if the company is
voluntarily delisting from all the stock
exchanges, it would require to call a
general body meeting and take
permission of its shareholders, make an
offer to buy-back as also advertise about
its intent in newspapers as per the
stipulated norms.
Indian IT firms recorded an
overall growth of 28%: NASSCOM
N
ASSCOM, the premier trade body
and 'voice' of the Indian IT-BPO
industry, has announced the
findings of its annual survey on the
performance of the Indian software and
services sector (excluding hardware) for
FY07-08 and outlook for FY08-09.
According to the annual NASSCOM survey,
the Indian IT-BPO industry (including
domestic market) recorded an overall
growth of 28% (currency adjusted),
clocking revenues of USD 52 billion in
FY07-08 up from USD 39.6 billion in FY06-
07. The software and services exports
segment grew by 29% (in USD) to register
revenues of USD 40.4 billion in FY07-08,
up from USD 31.4 billion in FY06-07. The
domestic segment grew by 26% (in INR) to
register revenues of USD 11.6 billion in
FY07-08.
Within the export segment, IT services
exports have grown by 28% (in USD) to
clock revenues of USD 23.1 billion; while
BPO exports are up by 30% (in USD)
registering revenues of USD 10.9 billion.
Engineering services and products exports
clocked revenues of USD 6.4 billion,
growing at 29% (in USD) in FY 07 -08.
The survey also projects that the overall
software and services revenues will grow
by 21-24% (currency adjusted) to touch
USD 50 billion in FY08-09.
Speaking at the conference, Mr. Som
Mittal, President, NASSCOM said “The
Indian IT-BPO industry's resilience is
reflected in its FY07-08 performance, with
a 28.2% overall growth rate and next
year's projected growth between 21-24
percent. Given that we are well on our
way to achieve the target of USD 60 billion
in exports by FY09-10, the industry is now
focusing on improving productivity,
efficiency, as well as opening up new
markets and services”. He further added
“The next decade offers opportunities and
challenges which will require new
business models and the industry
dynamics will also see significant changes
leading to a many new industry drivers
and enablers, and we will need to prepare
ourselves for these. NASSCOM is develop-
ing a long term vision for 2020, to chart
out the roadmap for all stakeholders and
help them tap into this opportunity”.