And the winners are ...

We asked you to give your picks for 2008

Out of the over 60 recommendations by you! Here are we think are the best justified picks


Recommendations of Lowkey


1) PSTL: The company is a value buy on FY09E EPS basis(@Rs 530) and the growth story gives strength to that. It is the largest Multiplex chain in the world and OPM are comparable to other multiplxes even though it operates mainly in Tier1 and Tier2 cities simply because of the digital transmission technology. The overall structure of the company involving dimple advertising, the digital transmission, international footprint, production, distribution and Food malls only strengthen the strong growth being seen in the bottom line.

The current EV of PSTL is less than its US, Malaysia and Singapore subsidiaries.

2) Williamson Magor and Company Ltd:
The group has other listed companies like Eveready and Williamson Tea Assam Ltd(which is the largest tea estate in India). The company has just concluded a tie up with D1 Oils. The company is involved with Jatropha plantation and bio fuel production. The idea of securing loans to the farmer and supplying them Jatropha seeds and then buying them at a gauranteed price means that even if the margin is considered at Re 1 per Litre, the bottom line should increase by 20x times in the next 3-4 years. The promoters are good and business plan and excution more transparent than IKF Technologies(the other listed company in this space). The company has a big promoter holding (67%) unline IKF(4%), however, this reduces the free float of the stock and so the price will remain range bound until the stock is split or restructured. Keep a lookout for Crude prices and liquidate your holdings in this company if crude hits $60 per barrel since then price of bio diesel becomes unviable.

3) Adani Enterprises: should show a steady growth over a period of next two years. The group has good plans and management has shown strong execution.


Recommendations of Sridhar Kondoji


My picks for the year 2008 and for next few years are

1) Dish and WWIL (wire & wireless)
2) Rajesh exports
3) IGL (indraprastha gas)
4) Educomp

1) Dish and WWIL: I am assuming that households will continue to spend money on home entertainment and can't cut down on expenses even if India enters slow growth era. There is still huge subscriber base to go after. Even though DISH and WWIL belong to same parent and are competing with each other i see room for both these companies to survive and leave a possibility of merger going ahead for the benefit of shareholders and bring value to their investments.

2) Rajesh exports: This is one of my favorite pick. Being a goldsmith, i know how time consuming the process of buying gold and making ornaments. Going forward consumers will be reluctant to wait that long to wear the ornamnets and just head to jewellery retail outlets to buy their ornaments. Whether Gold price goes up or down, the margins of retail outlets like Rajesh exports will be maintained. Also with a large and innovative design gallery, they will continue to lure customers away from traditional jewellers like our family.

3) IGL (indraprastha gas)
I like their PNG and CNG business. However i see huge money in PNG segment going forward for the convenience it brings to consumers who are used to cylinders. They are leaders in this segment and have first mover advantage and they are set up to take advantage of this position.

4) Educomp: More and More schools will adopt Educomp and they will reap the benefits of their hardwork they put in all these years. They are moving in the right direction. This will be a true multibagger in next few years.