Capita Telepholio BUY Recommendation for Short Term

BUY          : KCP Limited at Rs 279
BSE Code      : Not listed
NSE Symbol    : KCP
Market Lot    : 1

KCP is a good cement-cum-engineering-cum-power-cum-real estate story. While cement and engineering divisions are doing well in line with the industry trends, the company is also set to fully utilise its hydel power projects and capitalise on surplus real estate at three locations.

Actual adjusted  consolidated EPS for March 2005: Rs  12.4
Actual adjusted  consolidated EPS for March 2006: Rs  16.6
Projected adjusted  consolidated EPS for March 2007: Rs  33.1

Global Vectra Helicorp (GVH) IPO on high side and can be avoided

While there is potential in the company's business, the offer price appears stiff.

Investors can give the IPO of Global Vectra Helicorp (GVH) the go-by. While there is potential in the company's business, the offer, in the price band of Rs 175-200, appears on the high side. Returns from an investment in the stock at this price may not be attractive enough to compensate with the associated risk.

GVH's business

GVH is in the business of operating helicopter services for offshore transportation for the oil and gas industry. It now owns 14 Bell helicopters, making it the second biggest player in the business after Pawan Hans, a subsidiary of ONGC.

The offer, which will help the company raise Rs 49-56 crore, will partly finance the fleet expansion plans, apart from the setting up of a hangar at Mumbai's Juhu aerodrome. GVH plans to add six more helicopters to its fleet, taking the total to 20 by end-2006-07. The plan is to eventually take the fleet strength to 29 by March 2009.

Development Credit Bank IPO: Avoid

Steep valuations, unimpressive performance and lack of clarity on business initiatives compel us to take cautious view on the IPO of DCB

Investors can consider giving the initial public offer of Development Credit Bank (DCB) a go-by as the challenges appear to outweigh the opportunities. Unimpressive financial contours, demanding valuations and lack of clarity on the business initiatives fail to inspire confidence in the offer.

Hanung Toys and Textiles IPO - Invest with medium term perspective

Bright prospects in the toys business and an interesting product range in the home textiles segment, make the offer attractive

An investment with a medium-term perspective can be considered in the initial public offer of Hanung Toys and Textiles (HTT). The price band values the offer at 11-12 times its annualised FY-07 per-share earnings on the fully expanded equity. The valuation is stiff compared to its peers in the textile industry. Bright prospects in the toys business and an interesting product range in the home textiles business, however, make the offer attractive for an investor with an appetite for risk. The recommendation is not linked to any gains upon listing.

The Rs 150-crore Hanung is one of the larger manufacturers and exporters of soft toys in India. HTT exports soft toys, typically associated with teddy bears and bunnies, to retailers in the US and Europe. Customers include IKEA, Asda, and Metro. Revenues from this business, at Rs 90 crore, account for only about 65 per cent of the total. HTT started manufacturing home furnishings about two years ago on demand from its buyers. The business has quickly grown to Rs 50 crore and accounts for the balance 35 per cent. HTT is now tapping the market to partly fund a Rs 170-crore project to set up an integrated home textile facility, spanning weaving, processing and made-ups, in Uttaranchal. The scale of its expansion is ambitious — home textile capacities are set to expand more than five fold. The capacities are likely to be operational in January 2007.