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

Capital Market Telefolio Recommendation

BUY: Goodyear India at Rs 176

Now full details:

BUY : Goodyear India at Rs 176
BSE Code : 500168
NSE Symbol: Not listed
Market Lot: 1

A 74% subsidiary of Goodyear Tyre, USA, Goodyear India has posted remarkable
growth in the current year. With benefits of lower raw material prices
expected in future and buoyancy in auto industry, the company should witness
healthy growth in future as well.

Actual EPS for December 2005 : Rs 3.8
Projected adjusted EPS for December 2006: Rs 16.9
Projected EPS for December 2007 : Rs 22

Thanks Vishesh

Capital Market Telefolio Plus - Indian Hume Pipe

The company will benefit from large investments being made in improving the country's water infrastructure

In FY 2007, we expect the company to register sales and net profit 362.66 crore and Rs 18.96 crore respectively. On a tiny equity of Rs 4.84 crore (70% held by promoters) and face value of Rs 10 per share, EPS works out to Rs 39.2. Book Value will cross Rs 265. The share price trades at Rs 375. P/E works out to just 9.6.