Thermax Buy Rs 896.15
ICSA India Buy Rs 397.15
Yes Bank Buy Rs 246.05
grasim ind sell --citi
kpit commins infosystems --book profit


Thermax Face Value - Rs 2 Buy Rs 896.15
Ticker: 500411 Equity: Rs 23.83 crore H/L: Rs 968.30/341.10
􀁺 Thermax is a global solution provider in energy and environment
engineering. It offers products and services in heating,
cooling, waste heat recovery, captive power, water treatment
and recycling, waste management and performance chemicals.
􀁺 The primary reason to recommend this company is its strong
financial performance in the first half of FY08. For H1FY08,
the company posted a topline of Rs 1436.63 crore and bottomline
of Rs 125.22 crore as compared to Rs 804.93 crore
and Rs 62.62 crore respectively in H1FY07.
􀁺 On the valuation front, the company discounts its trailing 12-
month performance by 21x, which is low compared to that of
its industry peers. Thermax had a strong order book of Rs
2769 crore as on March 31, 2007. With strong order book for
all its divisions like Environment Segment Analysis and
Projects business group and better orders expected from the
exports markets, the performance of the company is only
expected to improve further. Hence, we recommend investors
to buy the scrip at current levels.

ICSA India Face Value - Rs 2 Buy Rs 397.15
Ticker: 531524 Equity: Rs 23.83 crore H/L: Rs 402.40/161.80
􀁺 ICSA India has developed innovative products suitable for
power utilities in the fields of energy management, energy audit
and control applications. The focus area of ICSA has been its
technology solutions to the power sector to identify distribution
and transmission losses and monitor power consumption.
Flash News Investment 􀁺 December 10, 2007 5
􀁺 In addition, the company is also venturing into substation controllers,
distribution transformer controllers, and automatic
meter reading systems. The technology developed by the company
has proved its usage and resulted in good and repeated
orders from various organizations and states and this promises to
deliver good growth for the company.
􀁺 On the financial front, the company has performed well. Its
topline and bottomline increased consistently in the last five
years. The performance for H1FY08 has been strong and the
company posted a topline of Rs 268.87 crore and bottomline of
Rs 52.80 crore as compared to Rs 134.22 crore and Rs 27.21
crore respectively in H1FY07.
􀁺 On the valuation front, the CMP of Rs 379 discounts its trailing
12-month performance by 17x, which is much lower than
its peers. With a strong outlook for the generation and distribution
sectors, we believe that the performance by ICSA India will
be good in the coming year. Therefore, we recommend investors
to buy it at the current level.

Yes Bank Face Value - Rs 10 Buy Rs 246.05
Ticker: 532648 Equity: Rs 280 crore Rs 254.90/116.55
􀁺 Yes Bank has registered impressive growth in the second quarter
of FY08, surpassing all expectations. Earnings are expected to
remain strong on account of robust growth in business owing to
its aggressive expansion plans. Its retail branches are expected to
drive growth in its retail assets, which in turn is expected to generate
considerable fee income from third party distribution of
financial products.
􀁺 In 2QFY08, the bank added six branches to take its total number
of branches to 60. The bank has already received additional licenses
to open 56 more branches and 125 ATMs. The management
has indicated that its total number of branchs will be 100 in FY08
and expects to increase to 175 in FY09.
􀁺 As the bank begins to leverage its expanding retail franchise, the
share of CASA deposits is expected to control rising cost to funds.
It continues to invest in improving the diversity of its fee income
by establishing new fee related activities, thereby maintaining high
levels of non-interest income, and being ROE accretive.
􀁺 The share of low-cost CASA deposits to total deposits improved
from 5.2 per cent in 2QFY07 to 7.4 per cent in 2QFY08.
􀁺 On the operational front, the NIM has declined to 2.3 per cent
but with improvement in the CASA deposits it is expected to
improve, going forward. Importantly the bank has zero per cent
gross NPAs. The scrip is trading at a price to book ratio of 8.27x,
which on the higher side. But we still recommend it to investors
with a perspective for 18 months.

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