LIFE LEARNED LESSONS BY SEVAK

Fundamental Call on May14, 09: By Praveen Sevak Co Name: Elgi Equipment Reco: Buy CMP: Rs 36.5 (around) (Buy in small quantity at CMP) Best Buy Level: Rs 32 (around) (accumulate dip around this level) Target: Rs 43-45 (1-2 months), Rs 62 (6-12 months) Investment Rational: 1. Elgi, the market leader and Asia's largest manufacturer of air compressors and automobile service station equipment, has incorporated a wholly owned subsidiary company in China also. And already, it has presence in all the major markets across the world covering Europe, North America, Latin America, Africa, Australia, Middle East, South east and west Asia. 2. It is a debt free company and have almost maintained growth even in the downturn also. 3. Though its Net Sales and Net profit has gone down in the 4th quarter of FY 09, it has managed to increase its profitability margins that clearly shows its competitive advantage over its peers.

Buy MIC Electronics Co Name: MIC Electronics, CMP: Rs 23.85, Best Buy Levbvel: At CMP or Dip around Rs 21 Target Level: Rs 30(1-2 month), Rs 65 (6-12 months)

Stock: Vakrangee Software Reco: Buy CMP: Rs 36.7 Best Buy Level: at CMP or dip around Rs 32 Target: Rs 50-52 (1-2 months), Rs 80(6-12 months)

Dear All, Who -so-ever have interest in share market- current ongoing last few trading days were very confusing including today - but let me tell you, it was not like so. Following the ongoing election and the fund needed by different political parties and dismal performance by corporates (companies) in the last 2-3 quarters and also in coming 1-2 quarters, corporates were and are not in the position; as they were in the last election; but parties need fund. Now one of the ways that can assure them very good funds is share market. So what is happening in the market is, it is defying all the global cues for last 15 trading sessions and especially since the start of the election on Apr 18,09. Every day it is taking an almost u-turn in between start and close of the market. The market has turned as much volatile that no fundamental can be applied and behaving almost irrational and without any logic to support the volatility. The market is behaving like monthe expiry has approached. Its n...

PAIR STRATEGY Pair Strategy is taking a long short position within a sector on a market neutral basis based on the price ratio movement of the stocks. This strategy takes on advantage when there is dispersion in the current ratio of the two correlated stocks. The positions are squared off when the relative prices return to their averages mean. Long IOC and Short BPCL (CMP & M Cap taken on Apr02, 09): IOC (LONG) BPCL (SHORT) NSE Code IOC BPCL Spot Rs 405.15 Rs 372.90 Future Price Rs 405.85 Rs 375.85 M-Cap Rs cr 48309.05 Rs cr 13481.9 3Months High Rs 466.90 Rs 423.30 3 Months Low Rs 354 Rs 329.50

PAIR STRATEGY What Pair Strategy is all about? Pair Strategy is taking a long short position within a sector on a market neutral basis based on the price ratio movement of the stocks. This strategy takes on advantage when there is dispersion in the current ratio of the two correlated stocks. The positions are squared off when the relative prices return to their averages mean. The Strategy is purely based on quantitative analysis. 1. Long HLL and Short ITC (CMP & M Cap taken on Apr02, 09): HLL (LONG) ITC (SHORT) NSE Code HINDUNILVR ITC Spot Rs 231 Rs 185.3 Future Price Rs 232.75 Rs 186.85 M-Cap Rs cr 50355 Rs cr 69940 3Months High Rs 271.9 ...

Buy Jhunjhunwala VanaspatiWith Short as well as Long Term View Co Name: Jhunjhunwala Vanaspati Ltd Reco: Buy CMP: Rs 72 (Dec05,08) Best Buy Level: Dip around Rs 65 (accumulate at or below this level) Target Price: Rs 82-85 (1-3 months), Rs 120(12-18) months Investment Rational: 1. Fundamentally, The company performance is quite consistant and it is registering very impressive growth in its Top Line ( Net Sales) and Bottom Level (PAT) of around 50% and 70% consequtively on average basis. It has EPS of Rs 48 (approx) so PE of 1.5 and BV = Rs 132. 2. 58% of its earnings comes from vanaspati oil and rest from soya, palm and Mustard oil. And, it has 35-40% market share in UP and Bihar. And, it has increased its market share over period of time. At the same time. the company has plans to increase its total capacity and to establish nes units in Bihar and West Bengal as well. Moreover, It has taken over a fertilizer comapany in Bihar to enter in Fertilizer segment.