| 328 |
186.40% |
| Banswara Syntex | 28 | 153.40% |
| KSB Pumps | 38 | 143.60% |
| MIRC Electronics | 100 | 113.60% |
| Kothari Products | 76 | 105.30% |
| ICICI Bank | 2,177 | 102.20% |
| Flex Inds | 189 | 94.60% |
| Eureka Forbes | 33 | 82.90% |
| Infosys | 2,273 | 81.90% |
| Gammon India | 92 | 77.30% |
| Garden Silk Mill | 110 | 71.80% |
| Indian Overseas | 552 | 69.60% |
| e-Serve International | 76 | 68.80% |
| HCL Infosystems | 163 | 68.50% |
| Mastek | 44 | 67.40% |
| Lord Krishna Bank | 27 | 60.90% |
| Aban Loyd Chiles | 76 | 58.60% |
| Dabur India | 332 | 56.50% |
| Cosmo Films | 67 | 56.00% |
| Allahabad Bank | 498 | 54.60% |
| Federal Bank | 124 | 54.00% |
| Jindal Steel | 401 | 52.50% |
| Indo Rama | 396 | 52.00% |
| Infomedia India | 62 | 51.80% |
| BOC India | 72 | 51.40% |
| Manganese ORE | 31 | 51.30% |
| Intl. Flavours | 70 | 50.00% |
| Guj. Mineral Dev | 104 | 48.70% |
| Blue Dart Exp. | 42 | 48.60% |
| Mahin Brit. Tel | 152 | 48.00% |
| Hero Honda Motor | 930 | 47.50% |
| India Nipp.Elec. | 34 | 47.00% |
| Canara Bank | 1,452 | 46.90% |
| Eicher Motors | 62 | 45.60% |
| Bank of India | 1,096 | 44.90% |
| HDFC Bank | 635 | 44.30% |
| Deepak Fert. | 102 | 44.20% |
| Catholic Bank | 49 | 43.90% |
| Kochi Refineries | 701 | 43.80% |
| Hindustan Zinc | 176 | 43.60% |
| Amtek Auto | 93 | 42.50% |
| Andhra Bank | 525 | 40.60% |
|
Source: Khandwala Research; Capital Market |
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| Following stocks are the top five picks featured in the study.
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MOTOR INDUSTRIES
Current price: Rs 1,853
Price-earnings ratio: 16.4
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| Incorporated in 1951 as a subsidiary of Robert Bosch AG, Germany, Motor Industries Co (Mico) is India's largest auto-ancillary firm.
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Mico is a pioneer in automotive spark plugs (65 per cent marketshare) and diesel fuel injection equipment (80 per cent marketshare) in India.
It has benefited from increased outsourcing to Bosch, which has relocated production of certain products to Mico.
It is planning to expand its service outlets to 50 by late-2004 and 200 by 2005.
The rising price of raw materials such as steel and oil is a threat to the bottomline.
Rising competition and availability of cheaper imports.
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Outlook
Mico's stock currently trades at Rs 1,567, which discounts its CY03 earnings by 19.7 times. The good growth in the automobile sector, especially in the tractor segment, apart from the government's focus on infrastructural and agricultural growth, is expected to be beneficial for Mico.
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| The proposal to implement Euro-III emission norms from 2005 and introduction of new technology products by car manufacturers will generate demand for high pressure fuel injection systems. Mico is well positioned to take advantage of this situation. Consequently, it's set to post robust earnings growth in the medium term. A solid multi-bagger.
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INDO RAMA SYNTHETICS (INDIA)
Current price: Rs 69
Price-earnings ratio: 5.8
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| Incorporated in April 1986, Indo Rama Synthetics is India's second-largest polyester producer. It manufactures synthetic yarn, polyester staple fibre (PSF) and polyester filament yarn (POY) and exports its products to US, Germany, France and Belgium.
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| With installed capacity of 3 lakh tonnes per annum it is next only to Reliance Industries. Given the conglomerate business model of RIL, Indo Rama Synthetic is the only pure play in the Indian polyester textile industry.
Presence in a business segment which has growth opportunity in both domestic and exports markets.
High return on capital.
Government policies favour the cotton segment.
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Outlook
The stock trades at Rs 70.6, which discounts its FY04 earnings by 6.5 times. The polyester textile industry is growing faster than the cotton industry because of its versatility and price competitiveness.
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| The trend is expected to continue in the future which should benefit Indo Rama. The company looks set to enjoy the benefits of both good topline growth potential and cost efficiencies. A potential multi-bagger.
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BHARAT FORGE
Current price: Rs 948
Price-earnings ratio: 25.3
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| Bharat Forge (BFL) is a global supplier of automotive engine and suspension components. It manufactures general engineering equipment, and forging and machined components for the automotive, diesel engine, railway and earth moving segments.
Bharat Forge is the largest forging company in Asia and one among the top three forging companies in the world.
Sales and profitability hit a high in FY04.
During FY04 the company bagged orders for engine components from Daimler Chrysler and Ford Motor Company.
BFL's proposed capacity additions will more than double its passenger car crankshaft forging ability to around 3 million crankshafts per year.
High steel prices are a cause of concern.
The company is already working at around its optimum capacity.
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Outlook
The stock trades at Rs 760, which discounts its FY04 earnings by 22.4 times. The company is on a growth trajectory and has a good global presence with its products finding application in various industries worldwide.
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This enables it to safeguard its profitability margins. Its outstanding debts are also coming down with time, which will lift its cash position. With the recovery in industrial growth, demand for its products is bound to increase. The company's high growth prospects make it an attractive buy at the current levels. Another solid multi-bagger.
MAHINDRA & MAHINDRA
Current price: Rs 500
Price-earnings ratio: 12.62
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M&M has two main operating divisions. While the automotive division manufactures utility vehicles, light commercial vehicles and three wheelers, the tractor division makes agricultural tractors.
Export growth is expected to remain strong in the coming years. The company aims to increase exports of tractors to US and UK with plans to launch three new products in US in FY05.
After the exemption of the excise duty announced in the Budget, the company has reduced its tractor prices by around 3-4 per cent. This along with new product launches will help it push up volumes.
Rising competition in the industry can pose a threat to the company
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