The Colour Of Money

Export Heavy Cos May Be Sweating Over An Appreciating Rupee, But Import Heavy Firms Are Raking In The Money,

The Apppreciating Rupee Has Caused Much Concern On Dallal Street. So Far, The Focus Has Mostly Been On The Adverse Impact Of The Apppreciating Rupee On Cos Whose Revenues Come Largely From Exprots. However, As Is Often The Case, One Mans Nightmare Is Another Mans Dream. And In This Case, The Other Man Happens To Be Big Importers.

When I Go Through The Detailed Analysis Of Cos With High Import Intensity And Has Come Up With A List Of Cos Where Investors Can Take Advantage Of The Rising Rupee. This Is A Set Of Cos Which Have An Import Intensity ( Raw Material Imports/total Raw Material Cost ) Of More Than 60%. These Cos Have Fared Much Better Than The Manufacturing Sector As A Whole, Achieving A Profit Growth Of More Than 100% For The First Quarter Of '07 Against A Growth Of 32% For The Aggreagate Manufacturing Sector. This Gain Comes From Significant Savings In Raw Material Costs. This Is Reflected In The Raw Material/sales Ratio, Which Has Fallen By About 130basis Points. Given That Most Currency Analysts Believe The Rupee Will Remain Strong, It Is Likely That These Cos Will Post Significant Improvement In Their Profits For The Entire Fiscal,

Here Are Some Companies Which In My Opinion May Fare Well In The Coming Months For The Current Financial Yr. Based On Their Consistent Performers In The Past And Are Liely To Gain From The Rupee's Appreciation. The List Excludes Oil Refining, Makreting Cos Which Are Heavily Dependent On Imports, But Do Not Have The Freedom To Price Their Products, Thereby Leaving Their Performance At The Govt. Mercy.

List Is :


Seshyasyee Paper & Boards,
Basf India
Mukand
Century Ply Board
Bayer Crop Science
Kirloskar Ferrous
Honeywell Automation India
Tata Chemicals,
Hcl Infosystems,

Happy Investing , May God Bless All Of Us With Health, Wealth, Peace , Prosperity And Happyness

Mrs Sangeetha Jain, Chennai, Tamilnadu