- Group-8 Anand Shekhar Bhuwan Chandra Sudeepti Yarlagadda Vibhanshu Kumar

Top 500 small cap companies

Diversified industries Mitigating unsystematic risk

Initial stocks 500 (Top 50 Small Cap) Net worth > 15% D/E < 0.9 Interest Cover > 20 Current Ratio > 2 ; Final Stocks = 50

 Efficient deployment of resources

Indicates high capital efficiency

Company resilient to economic cycles Competitive advantage

Instills confidence in future profits

RONW > 15 %

 Indicates a responsible and safe position

Financial position of the company

How leveraged is it in long run Low D/E believed to avoids risk of default in case

of liquidation

D/E < 0.9

 Indicates ability to pay interest charges on debt

Indicates generation of sufficient cash

Acts as a safety gauge Indicates short term financial health

Interest Coverage > 20

 Test companys liquidity

Efficiency of companys operating cycle

Short term financial strength

Current Ratio >2

Company

Industry

Share RONW DebtPrice Equity Ratio

32.9 28.02 0.04

Interestcover Current P/E P/E Ratio Ratio Industry company

20.83 3.7 12.68 5.82

Bliss GVS Pharmaceutical Pharma Ltd.

Zensar Computer Technologies Software Ltd.

221

26.24

0.01

195.3

4.06

8.33

7.58

Symphony Ltd.

Electricals

277

36.74

0.03

105.15

2.43

17.8

17

VST Tillers Automobile Tractors Ltd. Infinite Computer Solutions India Ltd. Computer Software

373

21.68

0.04

50.73

2.5

14.79

7.10

89.3

26.17

0.01

33.54

2.29

8.33

3.60

 Have Most Modern plant to manufacture Female

Contraceptives.
Net sales increased by 3%, but Net profit decreased

by 3% by the quarter ended in December 2010.

85% revenue come from Africa, Russia and South

Asia.
Planning to enter in Gulf countries and Kuwait.

Total Sales Revenue from Pharma

3

OTC
Pharma 10 Domestic 90 Export

97

 Volumes grew 1.8% QoQ and pricing remain stable

during the quarter

Hopes for better pricing due to Mobility of Projects Analytics going forward Had 28 crore of Forex gain during same quarter. America and Africa grew well, but Asia growth is

sluggish

 On Quarter ended September 2011, Sales grew by 24% to 28.78 crores Net profit grew by 85% to 4.41 crores Domestic business grew by 20% to 24.8 crores Export business grew by 57% to 3.99 crores Air cooler Business 95% of total Revenue Cooler industry is growing by 30% Its market share is about 70%

60000 50000 40000 30000 48000

35000 Sep,2010 Sep, 2011

20000
10800 10000 0 Domestic Export 6900

Sales of Tillers in FY11

33 44 VST Kerala Agro Manf. Chinese Imports

23

60 50 42 40 30 21 20 10 0 Sales Volume Revenue 24 Tractors Tillers 50

 Tillers:
Sales Volume increased to 7200 in Q4 FY11 from 5900 last

year Sales revenue increased to 82 crores from 66 crores

Tractors:
Sales volume increased to 1464 in Q4 FY11 from 1031 last

year Sales revenue increased to 33 crores from 22 crores

Selling price increased by 47% including discount to

dealers.

 During FY2008 to FY2012, revenue grew at CAGR 27%

and operating profit 59% to $38m

During Q4, revenues grew 0.5% q-o-q to $53.1 m,

operating profits de-grew 22% to $8.2 m and net profits de-grew 46% to $ 4.1 m.
During FY2012, revenue grew 14% to $220.7m, operating

profits grew 18.1% to $38.3m and net profits grew 7.4% to $25.2m

500 450 400 350 300 250 200 150 100 50 0 FY13 FY14 FY15 FY16 43 50 16.23 16.13 60 16.13 71 15.92 265 310 372 446 Revenue( m $) Operating Profit (m $) Operating Margin(%)