My Recommendations: March 2008

1. Camlin Fine Chemicals(Strong Buy below 60 Target100 1year])
2. Venkys India (Strong buy 120-130 Target 250-280 1 year)
3. Gujarat Ambhuja Exports(Strong buy 40-45 target 80-90 1 year)
4. Jayant Agro Industries(Strong buy 65-75 target 100-120 1 year)
5. Aarti Industries (strong buy at 28-31 Target 45-50 6-8 months) Reached
6. Arvind Products (strong buy 7 -7.50 target 11-15 12 months

Camlin Fine Chemicals http://www.camlinfinechem.com/
Company History: Dec 22, 2006 Fine chemicals division of Camlin has de-merged into a separate company named as Camlin Fine Chemicals
Buying Logic: Camlin has been making more money and Investing more money in Fine Chemical division (now Camlin fine chemicals) Also promoters are buying shares in the name of their minor children which means this is going to be their long term vehicle for growth and investment.

Year of Operation	2005-2006	2004-2005	2005-2006	2004-2005
Divisions	Consumer Products	Consumer Products	Fine Chemicals	Fine Chemicals
Revenue(lakh)	152,97	137,27	43,20	37,17
Seg. Result(lakh)	7,80	5,97	7,46	7,11
Capital Exp.(lakh)	3,27	3,42	9,41	6,91

If you look at the results you can see that..
1. Bulk of Revenue is from the Consumer Products Division
2. Bulk of Profits are from the "Fine Chemicals Division"
3. Capital Expenditure (ie. capital invested in the business)
4. Capital invested in Fine chemical Division is double the levels of consumer products division [you will invest more money where you can get better returns]
Now lets look at the recent buyback offer by the promoters..
Link www.sebi.gov.in/takeover/camlinpa.pdf
Excerpts: Persons Acting in concert are making an Open Offer to the public shareholders of Camlin Fine Chemicals Limited to acquire 11,60,000 Equity shares of Rs 10 each at a price of Rs60 representing 20% of the issued voting capital of the company.
During the 12 months preceding this public announcement, The Acquirers have acquired 24,000 shares on March 30,2007 through market purchase at a price of 81.17 per share.
M/S Vibha Agencies(P) Ltd a part of the promoter group and also a person acting in concert with the main acquirers has acquired 12,000 shares at a price of 81.33 per share on March 30,2007
Suggestion: Buy at current levels for a risk free ride till rs 80 levels (30%)
Long Term investors can plan to hold the stock and expect decent appreciation on long term basis also.
IMF Global Financial Stability Report APRIL 2008
http://www.imf.org/external/pubs/ft/gfsr/2008/01/index.htm

Jayant Agro Organics
Sales March 2007 = 452.84Cr
Dec Qtr 2007 sales= 152Cr
Market Cap=104.58Cr
CMPrice=85/=
http://www.jayantagro.com/

Story: India is the largest producer of castor in the world 870,000MT 2nd is china with 268,000MT. India is the largest exporter of Castor oil in the world 90% of world exports are from India.

Jayant agro recently bought Gujarat Agro Industries crushing unit in Palanpur, gujarat in Ihsedu Agrochem Private Limited . The plant is now modernised and has a crushing capacity of 350MT Oil/Day ie 127,750MT Oil per annum. The plant is located in Banaskantha – which is one of the largest castor growing districts in Gujarat – which alone accounts for 75% of India’s Castor Seed production.

Castrol the lubricant company derives its name from the Castor Plant. Castor is the only natural oil that has properties similar to lubricants (produced from petroleum) so in this world of scarce petroleum reserves and Climate concerns (Carbon Neutral) Castor's oil uses are going to grow further.Recently Mitsui & Co has taken a 25% stake in Ihsedu Speciality chemicals. Also Itoh Oil Chemicals Co. Ltd., Japan has subscribed to Jayant agro limited shares at 105/= per share 6,00,000 shares. Reliance capital Growth & Quantum (George Soros) have 3.94% & 5.65% shareholding in Jayant Agro.
UPDATE: Reliance Cap and Quantum have Zero holding.. Looks like Jayant Oil a private company and largest player in Castor oil business in india did a private capital investment .. which could have pulled quantum and reliance cap
Considering the current market cap to sales ratio and the new plant going online the revenues are going to rise and also the company has started directly producing value added products instead of castor Oil. (hence the Mistui collaboration and 25% stake)

It is the hydroxyl group which makes castor oil and ricinoleic acid valuable as chemical feedstocks. Compared to other seed oils which lack the hydroxyl group, castor oil demands a higher price. As an example, in July 2007 Indian castor oil sold for about USD 0.90 per kilogram (USD 0.41 per pound)[3] while US soybean, sunflower and canola oil sold for about USD0.30 per kilogram (USD0.14 per pound)

Castor oil and its derivatives have applications in the manufacturing of soaps, lubricants, hydraulic and brake fluids, paints, dyes, coatings, inks, cold resistant plastics, waxes and polishes, nylon, pharmaceuticals and perfumes.

Great Value Buy!!
You can expect coverage by investment houses once the stock crosses 120 levels