Capita Telefolio Volume No 13, Issue No 1 dated Saturday, 25th November 2006

The following recommendation is based on price as on Friday, 24th November 2006.

BUY: Honda Siel Power at Rs 167

Now full details:

BUY : Honda Siel Power at Rs 167
BSE Code : 522064
NSE Symbol: HONDAPOWER
Market Lot: 1

A 67% subsidiary of Honda, Japan, Honda Power is a leading player in portable generator sets. Through higher indigenisation, cost control and better market grip due to upturn in demand and reduced competition due to stricter compliance norms, the company is set to substantially improve its profitability. With more than half of its high book value of Rs 150 parked in bank deposits, the company can give a very liberal dividend and/or go for buyback.

Actual EPS for March 2005 : Rs 7.9
Actual EPS for March 2006 : Rs 10.2
Projected EPS for March 2007: Rs 16.3