Sarda Plywood Industries re-visited

Dear Sumit,
                    In the earlier mails I have talked about this company
number of times. Every mail cannot speak of all companies and this is
not desirable also. I am again telling, this company is into plywood
and tea. Both the sectors are expected to do well in the coming days as:
1. There is a real estate boom in India. And Plywood is necessary for
building houses and for upholstry purposes.
2. Boom in the tea industry calls for the demand for the boxes made of
plywood.
3. The products of this company are well known in Indian market
4. It has recently acquired a company in its own field, which will
give it an increased turnover.
5. Tea industry is booming with government giving Rs.100 Cr package to
revamp this sector.
6. Tea prices are set to rise due to shotfall of tea in Kenya and some
other African States.
7. The company has huge assets of valuation worth crores of rupees or
in other words the company has huge land bank.
8. As the eastern part of India, especially, North East and West
Bengal and Orissa, are undergoing rapid industrial development, the
company's products will be needed for making the homes of factory
workers and making residential colonies. As plywood is an essential
ingredient for making houses in North East( Assam, Meghalaya,
Arunachal Pradesh, Mizoram and Tripura specially) the transportation
cost will be minimum as the company has factory near Tinsukia, which
is close to most of the seven sister states of North East.
9. The company has an enviable earning per share compared to its peers.
10. The company is expected to come up with good results this quarter.

Hence, I would advise all to either keep holding or pick them up in
every dips. Another good company in this sector is Green Ply, whose
factory is in North East like the previous one. But the former is
better places if we compare both the two.
I have placed a first target of Rs.80 for the stock. It is also
recommended by a well known analyst. I have talked of Chandra Prabhu
in the earlier mails, please go through them.
Best regards,
Suman Mukherjee
India.