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Thursday, November 27, 2008

SMC Institutional Research Views on Smallcap Power Stocks - KEC International, Gujarat Industies Power

KEC International
KEC is a RPG group company involved in power transmission, engineering, procurement and construction. The company has reported 28% CAGR growth in revenue for last three years. We believe the aggressive investment plans of government would benefit transmission companies including KEC.

Gujarat Industies Power
Gujarat Industries Power Company (GIPCL) has a huge lignite reserves and also multiple fuel sources. It has reported 6% CAGR growth in revenue for last five years. We believe company will continue to enjoy ROE of 9% and fundamental EPS growth rate of 12%. We expect the top and bottom line to grow at a CAGR of 6% and 11% respectively over FY08-11.

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