ANALYSIS- RAJESH EXPORTS

RAJESH EXPORTS LTD :

CMP -Rs 150 after stock split in Sept 2005 .Face value :Rs 2

Listed on BSE & NSE

(REL) is engaged in the Manufacture, Export and Wholesale of gold jewellery.

News :

Benettt & Coleman to pick up 5.27% shares of this company

Minerals & Metals Trading Corporation to buy jewellery from REL

HIGHLIGHTS

1) The company is the largest exporter of gold jewellery from the country.

2) REL has set up the world's largest and the most modern and sophisticated jewellery manufacturing unit at White Field, Bangalore in the year 2002.

3) REL is the only Trading House which has been recognized by Government of India in the field of gold jewellery

4) Received several Central and State Government Awards for its excellent performance in exports.

5) In addition to export sales, Rajesh has also diversified its activities into domestic wholesale of gold jewellery and has received overwhelming response for its products. The company is the largest manufacturer of 22-carat gold jewellery in the world.

6) The company has, over a period of time, acquired expertise in the manufacture of gold jewellery and is currently in a position to produce the finest gold jewellery in the world at the most competitive price,

7) The company has also setup an excellent supply chain management system, both for international and domestic market which is capable of expanding many folds.

8) The most organized player in. the vast unorganized domestic market.

EXPORTS

Currently the company exports about 34% of the total Indian plain gold jewellery exports with a potential to acquire more than 50% of the Indian export market share. The company also has capacity and plans to compete with the products of other countries and corner the share of large exporting countries like Italy, Israel and Singapore.

DOMESTIC MARKET :The company's share in the domestic Indian jewellery market is miniscule and has a potential to at least acquire about 10% of the Indian jewellery market share, which would amount in value wise to about 7500 crores.

TECHNOLOGY: The company is in the process of developing several new designs, technologies, processes in jewellery manufacturing which would be unique both in the global and Indian markets. The company has a unique capability to manufacture fusion jewellery which is a combination of machine made and hand made jewellery. Very few jewellery units across the world have the capacity to manufacture fusion jewellery.

MARKETING TIE-UPS:

The company has a well experienced marketing teams both for global and Indian markets, The company has developed an extensive global marketing network through leading wholesalers in respective countries with which the company has exclusive marketing arrangements to ensure continuous and growing business. The company exports its jewellery to USA, UK, UAE, Kuwait, Muscat, Singapore etc, The company has maintained excellent professional and cordial relations with most of the overseas buyers since the commencement of the company's exports. The entire operation of the company is computerised and credit limits have been set for each of the parties in export and for local wholesale. There is a strong credit policy in place, reducing its business risk.

ANALYSIS -ITL Industries

ITL Industries : CMP –Rs 36.BSE Stock

(Price on 6th September 2005 :Rs 38.Fluctuated to a low of Rs 29 recently.

9 % upper circuit for trading on 6th & 7th October 2005)

ITL Industries is into the business of Machine Manufacturing(Bandsaw Machines/Bi-Metallic Oil,Band saw Blades-Bimetal machines e.t.c) & Hydraulics.ITL offers 60 different models of Bandsaw machine ranging from 100 mm to 1500 mm cutting capacity with manual, semi automatic, automatic and fourth generation CNC machines.

HIGHLIGHTS :

Collaboraton with KASTO Maschinenfabrik GmbH Germany to manufacture state-of-the-art High Speed Power Hacksawing Machines in India


ITL has received good orders for production of Tubes & Pipes manufacturing machines during the current year as well as many enquiries have been received from home and international market


ITL is now a hub for Tube Technology of leading manufacturers technical know-how from USA, Europe and Japan and offers state of the art equipment crafted by highly experienced technical team


DOMESTIC CLIENTS

All the major Steel Plants, MNCs, Defense Establishments, Railways workshops, Bharat Heavy Electrical Units, Steel Tube Plants, Research Organizations like BARC, NFC, DMRL, ISRO, MIDHANI etc. and Heavy Engineering Industries are the customers of ITL Industries Ltd.

EXPORT CLIENTS

ABB,BURGMANN,DELSY,ECHLIN,GE,HAGLUNDS,HONDA,FORD,SANDVIK
KSB,WENDT e.t.c.

FINANCIALS

ITL's financials were not so exciting till now but the trend is likely to change dramatically in the coming years as both the capital good sector and the engg sector is looking up and also the company has a strong order book position which will increase its topline and bottomline by quite a margin.

DIVIDEND
ITL also gives a decent dividend of 10% which at the cmp of 33rs gives a dividend yield of more than 3%.

YES BANK LTD

Buy with a Stop loss of Rs 64 (Medium –Long Term Holding)


Highlights:

1.Experienced Promoters & Holding by reputed Institutions


a) Ashok Kapur and Rana Kapur (27.6 %)
b) Doit ,Mags & Morgan ( 24.6 %)
c) Rabo bank International (20 %)
d) Citicorp (10 %)
e) AIF Capital (7.5 %)
f) Chryscapital (7.5 %)

Ashok Kapur, chairman, is a graduate from Institute of Bankers, U K. He had a long stint with ANZ Grindlays Bank in various capacities. He was also Regional Manager (Executive Vice-President), ABN Amro Bank, Singapore and has the distinction of being the first Asian to be appointed “Country Manager” of ABN Amro Bank, India. Before joining YES Bank, he was the Managing Director of Rabo India.


Rana Kapoor, managing director and chief executive officer, holds management degree from Rutzers University, US. He has over 20 years of experience with foreign banks like ANZ Grindlays and Bank of America. He was the managing director and CEO of Rabo India.
Apart from the experienced promoters, the senior management team includes reputed names like Wouter Kolff, Hans ten Cate, Ajay Relan, Ashish Dhawan, Ajay Lal to name a few.

2.GROWTH OF MORE THAN 1500 %
Net Profit of Rs 1125 lakhs (June 2005 Quarter) from a loss of 376 lakhs in previous quarter (March 2005).

3.Technology & Branch Expansion to bring in positives