The Appreciating Rupee Has Caused Much Concern On Capital Markets, So Far, The Focus Has Mostly Been On The Adverse Impact Of The Appreciating Rupee On Co's Whose Revenues Come Largely From Exports. However, As Is Often The Case, On Man's Nightmare Is Another Man Dream. And In This Case, The Other Man Happens To Be Big Importers. Detailed Analysis Of Companies With High Import Intensity And Has Come Up With A List Of Companies Where Investors Can Take Advantage Of The Rising Rupee. This Is A Set Of Co's Which Have An Import Intensity ( Raw Material Imports/total Raw Material Cost) Of More Than 60% . These Co's Have Fared Much Better Than The Manufactruing Secotr As A Whole, Achieving A Profit Growth Of More Than 100% For The First Quarter Of '07, Against A Growth Of 32% For The Aggregate Manufacturing Secotr. This Gain Comes From Significant Savings In Raw Material Cost. This Is Reflected In The Raw Material /sales Ratio, Which Has Fallen By About 130 Basis Points. Given That Most Currency Analysts Believe The Rupee Will Remain Strong, It Is Likely That These Companies Will Post Significant Improvement In Their Profits For The Entire Fiscal. Below Industry And List Of Some Example Co's Which Will Gain From Rupee Appreciation But Excludes Oil Refining & Marketing Companies, Which Are Heavily Dependent On Imports, But Don Not Have The Freedom To Price Their Products, Thereby Leaving Theri Performance At The Govt. Mercy. List Of Companies Which U Can Buy, Tata Chemicals,hclinfosystems, Seshasyee Paper&boards, Honeywell Automation India, Kirloskar Ferrous, Basf India, Bayer Cropscience, Mukand, Century Plyboard These Are Some Of The Co's That Are Attractively Placed, With Significant Import Dependence And A Proven Track Record, Refer To The Adjacent Table, Most Of These Co's Can Be Expected To Post Higher Earnings Growth In Fy08 And Investors With A One Year Outlook Can Consider These As Attractive Propositions. Mrs. Sangeetha Jain, Chennai, Tamil Nadu
