WINNING STROKES: THINK DIFFERENT:

In today's morning report to the Paid Groups the following message about Reliance Industries Ltd was sent: RIL, the country's largest company by market capitalisation, is planning to spend an additional Rs 10,000 crore to produce natural gas from discoveries that were not a part of the original development plan in the Krishna-Godavari (KG) basin.

Reliance Industries has for the first time teamed up with China's China National Petroleum Corporation (CNPC) to win an oil and gas block in Peru in an effort to expand presence in Latin America. Reliance Exploration and Production DMCC, a fully owned subsidiary of Reliance Industries, along with CNPC and Argentina's Pluspetrol last week won rights to explore for gas in Block 155, in the southern highland department of Puno, next to the border with Bolivia.

Those who have shorted RIL would have to pay a heavy price going forward. Because any rise in crude prices will be positive for the Reliance Industries Ltd.

Today also Coke based companies are doing well. Yesterday it was mentioned to the Paid Groups about that..............

What was today's morning mail to the Paid Groups saying about the market levels....???!!

Where is the next level of resistance and supports.....?? What about the gold and crude prices...???

What to do with Moser Baer Ltd, SSPDL, SAIL, TISCO, Bhusan Steel, KEC International Ltd, and the infrastrucutre company Reliance Industrial Infrastrucutre Ltd, etc.

What is the latest on BGR Energy Ltd and Ennore Coke Ltd ???? What will be the effect of NEW ECB NORMS FOR THE INFRASTRUCTURE COMPANIES????

Those who are not subscribed to my Paid Groups, please do not send me personal mails, I am afraid you would not get reply as I very busy these days. It seems everyone wants everything to come to their desk free of charge.....Strange Outlook.....!!!

Sunday Report Recommended Scrip:

Mro-Tek Ltd

BSE Code: 532376

Current Market Price: Rs.47

Face Value: Rs.5.00

Book Value: Rs.49.24

EPS: Rs.8

Dividend: 60%

P/E: 5.8

Market Cap: Rs.89.23

52 Week High/Low: Rs.133.25/Rs.40.10

Introduction: MRO-TEK Ltd is mainly engaged in the business of providing Solutions and Services for Access to the Internet backbone, Data communications and Networking etc. Net access and Networking are among the fastest growing areas of business worldwide. MRO-TEK is a leading international networking company including Israel based RAD Data Communication - a leading manufacturer of network access equipment for data communications and telecommunications applications, Taiwan based ZyXEL Communication - leading broadband access solution provider, US based Foundry Network Inc. - a leading provider of switching, routing, security and application traffic management solutions. MRO-TEK's manufacturing facility is located at Electronics City, Bangalore. The Manufacturing unit's annual capacity stands at 150,000 units. The in-house Research & Development (R&D) Centre at MRO-TEK achieves complete product realization in delivering cutting edge networking products for global and domestic markets.

Shareholding Pattern: The promoters’ holding is 38.07% while the general public holding is 61.93%.Among the non-promoters Rakesh Jhunjhunwala holds 3.01% shares of the company while Goldman Sachs Investments Mauritius I Ltd holds 1.02% shares of the company.

Financials: For FY08, the total income of the company came out to be Rs.139.53 Cr as against Rs.115.65 Cr. The net profit of the company for FY08 came out to be Rs.15.66 Cr as against Rs.10.72 Cr in the same period previous year. The EPS of the company during the period came out to be Rs.7.85 as against Rs.5.25 in the same period previous year.

For Q1FY09, the total income of the company came out to be Rs.32.3 Cr as against Rs.25.31 Cr in the same period previous year. The operating profit of the company for Q1FY09 came out to be flat at Rs.3.54 Cr as against Rs.3.64 Cr in the same period previous year. The net profit of the company for Q1FY09 came, tad below due to higher, depreciation, tax and interest components.

The net profit of the company for Q1FY09 came out to be Rs.1.94 Cr as against Rs.2.22 Cr in the same period previous year. The EPS of the company also remained flat at Rs.1.02 in Q1FY09, as against Rs.1.07, in the same period previous year. This happened when the rupee was appreciating against the dollar and now with the tide reversing, we could see better results of the company going forward. For the full year (FY09) the company could clock an EPS of Rs.9, on a turnover of around Rs.150 Cr.

Investment Rationale: · MRO-TEK has implemented a customized solution to connect some of BIAL's (Bangalore International Airport Ltd.) customers operating in its premises with access to seamless voice and Internet applications. The last mile access and delivery solution was completely designed to ensure reliable and seamless connection of BIAL internal network infrastructure with the service provider networks.

· The company has bagged a pilot order for its optical access products from NTT Communications, Japan, which the company has come as recognition to its research and development capability to develop products for the global market. The company will supply Zambica and Fcat optical access products to NTT Communications; the $9.5-billion entity providing international telecommunications services including IP network and other data communications. The company has a 60-70 per cent market share for Fcat in India, where leading service providers like VSNL are major customers.

· Its clientele includes telecom operators like Bharti Airtel, Idea Cellular, RCom., BSNL etc., Internet Service Providers like Dishnet DSL, Sify, MTNL, VSNL etc. and with some of the large System integrators like Wipro, IBM, HCL etc. Products, in which MRO-TEK deals with, are meant for higher bandwidth, which insulate it from competition from the unorganized sector and cheap imports from neighboring countries.

· The Company has a flexible manufacturing base supported by an in-house technology unit for product customization and geared towards indigenous development, product feature improvement and technological upgradation.

· At the end of last year, MRO TEK Ltd informed that a break-through was achieved, for one of the products developed by the Company in its in-house R&D facility, and was commercialized, by way of a confirmed PO valued at Rs.3 Cr (approx), received from one of the large and reputed Services Providers of the Country. The said order is for execution during the last few quarters, and the Company is fully committed and positioned for timely-execution of the same. This is likely to open new opportunities for the company.

· With the rupee depreciating and the fundamentals of the US economy changing rapidly towards the positive side, good days are ahead for the IT companies. Mro-Tek being one of the reputed and established players in this space is expected to get maximum benefits from this event.

Conclusion: Considering all these factors mentioned above one can purchase the scrip at the CMP of Rs.47 for a price target of Rs.60—Rs.70 in the short to medium term perspective. The stock has a strong resistance at Rs.57.

Though at the moment we are not getting immediate-strong-buy-signals from the charts, the things can change dramatically in the days ahead if the Indices start to move up violently. Mro-Tek being a high beta stock is expected to move up with the markets. Also the scrip being near its 52-Week low price, it has minimum downslide.