Ion exchange India - Rakesh Jhunjhunwala holds it in his portfolio, so you may want to know about it

According to a recent report by McKinsey, in collaboration with the World Bank affiliate, International Finance Corporation, in the next two decades, global water consumption will increase from the present 4,500 billion cubic meters (bcm) to 6,900 bcm. This will be 40% more than the estimated reliable and sustainable supply today, if no action is taken to conserve water and use it more efficiently.

The situation in India will be dire as water demand will grow annually by 2.8% to reach a whopping 1,500 bcm while supply is projected at only about 744 bcm, that is, just half the demand, according to the report. This increase will be driven by domestic demand for rice, wheat, and sugar for a growing population, and a growing demand for a better diet. As a result, most of Indias river basins could face severe deficit by 2030, with some of the most populous, including the Ganga, the Krishna, and the Indian portion of the Indus facing the biggest absolute gap.

So, taking into account the estimate of the recent figures and the fact that water is perhaps the resource under most pressure globally, there's a need for an integrated approach of total water management. Saying this, the first company that comes to my mind is Ion Exchange India ltd.

Ion exchange India Ltd. pioneered water treatment and has a strong footing in water and environment management, with a strong international presence. Formed in 1964, as a subsidiary of the Permutit Company of UK, the company became a wholly Indian company in 1985 when Permutit divested their holding. Now that it's a pioneer in the water management, and also since it is held by ace investor Rakesh Jhunjhunwala in his portfolio, the company definitely calls for analysis.

However, when I looked at the financials of the company, I was rather disappointed. The company has not shown much growth over the year, as one would have expected. In the last three years, its revenue has only improved from Rs 405 cr., to Rs 433 cr., on standalone basis. On the consolidated front it recorded net sales of Rs 500 cr. Now, what's been disappointing is the state of margins commanded by the company. They have not been able to move ahead of 2.5% on NPM, while for FY2008-09 they suffered a heavy blow with NPM dropping below 0.5%.

The management of the company has been quite vocal about the concerns related to raw material costs. While the company suffered steep rise in raw material costs in first half of the year, the third and fourth quarter were marked by a slowdown in demand for their products and services.

Now looking further at the results for half year ending Sep'09, then the company has definitely shown revival with the stabilization of raw material cost. It has already made a net profit of Rs 2.9 cr, almost double of what it made for the entire FY2008-09. The Engineering services segment experienced a rebound, and that's what led to the improvement in nos., however here again, the margins were really poor at only 1.2%. Even their consumer products like Zero-B water purifiers are experiencing huge competition from numerous players operating in the market.

It's a fact that water and environment industry, by its very nature of business is highly sustainable. Increasing water scarcity and fresh water contamination due to untreated municipal sewage and industrial waste will require advanced technologies in water and waste water treatment. Recycle of waste water is becoming mandatory for housing complexes and industries.

However, looking at the present state of the company, and also the fluctuations in raw material prices, company would do better if it makes use of its R&D and come out with high margin products, else its operations will be marginalized. Also, at the end, I would like to mention that we are not suggesting a buy at present, even if it is held by Rakesh Jhunjhunwala.

Note: The stocks discussed at MPS thru blog postings are neither a part of “Business Insights” issue nor a “Penny Stocks” which we reco/publish for paid subscribers. These are just stock specific views by MPS team; one MUST do the due diligence before doing any investment based on our reco.

To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com

Usha Martin Education and Solutions Ltd. - Instant Profit pick closed successfully at a gain of 80%

Many of our regular readers will be aware of the fact that "Usha Martin Education and Solutions Ltd." was suggested as Instant Profit (IP) recommendation by us. On November 16th 2009, we had made the IP recommendation public just to make you all aware of the stocks selected under IP (article can be accessed here) .

We would like to congratulate all those who took position in this stock after reading our post and have made huge gains in a matter of just 10-11 days. The day we made the recommendation public, it was trading at Rs 12, while today our subscribers closed the position at Rs 17.8 (they were suggested to enter at Rs 9.5-10), a whooping 80% gain in just 17 days.

So, through this post I would like to tell all our readers, who entered the stock, that we have exited it, and would recommend the same to you all, as huge profit booking was witnessed at around Rs 17.


To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com

Some more insight into our 'Business Insight" recommendation for November

Yesterday, I had mentioned that watch out for this space in order to get some more insight into our "Business Insight" pick for the month of November. The previous article can be accessed here where we had mentioned about some basic business details, and some key stats. Also we had mentioned that how much can one expect in say 18 months time frame.

Since there is something more to tell about the promoters, there I would like to divulge some details :

We at HBJ feel that apart from business being good, one very important fact that one should not forget while investing is that promoter of the company should be extremely efficient and should have a sizable holding in the company. This is because they are going to run the company, and if they have a good holding in the company, then they would obviously be inclined towards taking decisions that would bring in laurels and growth to the company. Also, with the growth of the company, their wealth would also grow.

Thus, if promoters increase stake in the company it definitely makes sense for retail investors to put in money in the company, as they (promoters) are at the core of operations and are well aware of the fact that there is going to be an improvement in performance and a subsequent improvement in stock price.

So, all saying all this, I would like to mention here that "Business Insight" pick for this month saw promoter holding increasing by more than 100% in the last 12 months. The good thing is that I found them buying as recently as late October and early November, i.e around the current market price. This means that they are finding value at the current market price.

The promoters have shelled out more than Rs 25 cr for increasing the stake in the company, and this definitely speaks something about the confidence the promoters are showing in the future prospects of the company.

I don't think, I need to say more to help you take a decision.


To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com

Our "Business Insight" recommendation for Nov'09 : You may want to know about it

We have mentioned that you have to recognize when the right place, right people and the right time fuse and take advantage of that opportunity. There are only few opportunities out there, don't miss them. You can't sit back and wait for ever, time is running out, grab it fast, who knows the opportunity in hand might change your life for ever.

However before you take a decision about subscribing, I would first like to make you aware about some of the features of our "Business Insight" recommendation for the month of Nov. It is always better to take an informed decision rather than play a fluke.

Since the report will be released on 27th (pre-market), therefore if you subscribe for the same, you will have an equal opportunity as our other paid subscribers. I am saying this as in most of the cases, the stock starts hitting a buying freeze, once the report is released.

Now, let's discuss some of the characteristics of this month's "Business Insight" recommendation :

It is always wise to look for the sector which is being ignored. Some companies are always performing exceptionally well, and this gives an opportunity to get hold of them at extremely low valuations. Our pick for this month, is fast becoming an integrated player, backed by a great management and is on a rapid expansion plan.

The company commands one of the highest margins in the textile raw material manufacturing industry. This is because apart from substantial amount of investments made in R&D activities and captive power plants the management has been proactive about other initiative like de-bottlenecking, reduction in wastage, rationalization of manpower costs and optimum utilization of resources & cost reductions, thus enabling it to increase it market share and retain the higher operating margins. Make a note of the fact that yarn which is produced by company has been witnessing exciting demand growth in the domestic market at 17% over the year.

Until the end of Mar’09 quarter the company was dependent upon external market for sourcing raw material for the manufacturing of yarn. However in view of the increase in raw material prices consequent upon the movement of crude oil prices, the company in 2008-09 decided about setting up Continuous new plants, under which POY will be produced directly from MEG and PTA.

Finally the company has successfully commissioned fully imported new plant of 1 lac tons per annum and has started the production of an important raw material from 1st July 2009. As was told by the management, the company has already recorded a 70% jump in revenues and 3 fold increase in net profits for the quarter ending Sep’09.

The management after establishing new plant of 1 lac tons per annum, is in the process of setting up of another double digits lines of Polyester Spinning Plant with annual installed capacity of approx 50K tons per annum with total cost of Rs. 100+ crores. The present installed capacity stands at approx 12-13K tons per annum, thus the capacity will stand increased to 4-5 times.

The project is expected to go on stream by the end of 3rd quarter. Thus with both new plant and capacity expansion of four fold, the company is poised for a more than 10 times increase in profitability over 2008-09. Apart from expansion, the added advantage of these news lines is that raw material will be produced directly from new technology which will reduce cost substantially.

Some stats

The company is currently quoting at a market cap of just Rs 30-50 Cr., while if we annualize the earning for half year ending Sep’09 (taking into account the implementation of new plant), then it turns out to be Rs 12 Cr, over three times the net-profit of Rs approx 4 Cr. for FY2008-09.

Now, the company will be expanding its capacity by about 4-5 times with the implementation of new lines. Also the cost of production will be substantially low, thus further improvement in margins. So, even if we take the conservative stand of just 3 times increase, the earning for the entire financial may improve to somewhere about Rs 48-50 cr.

In the past the company has quoted at peak multiples of about 15. So, with an equity base of Rs 40 Cr. (10 paid up), and earnings of Rs 48-50 cr., EPS being Rs 12, and taking a conservative multiple of 10, the company is poised for multi-fold increase to Rs 120-130, i.e. more than 10-12 times increase.

--------

I think this is going long, and one should stop here. However, I would suggest you to watch out for this space tomorrow as there is much more to this stock.

Remember, all out recommendations are fundamentally supported. Also, this time we are not suggesting 15-20 times increase in 3 years, as we normally do. This recommendation is based purely on numbers (zist of which was provided under key stats), which has already started reflecting, and we rather suggest a 10-12 times increase in a matter of just 18 months.

To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com

Dhanuka Agritech - Making an impact in the agrochemicals biz

Agriculture is one sector which has been languishing for years, although majority of our population depends on it for their living. The reasons for slow growth are quite evident from the fact that we have been laggards w.r.t implementation of new technologies to our agriculture system. It's only recently that we are seeing some state governments giving emphasis to improved irrigation system. Average per hectare consumption of agrochemicals in India is comparatively lower than consumption in USA, JAPAN and other developed countries.

However, the lack of implementation over the years, and the renewed focus on improving the average productivity per hectare, gives a sense of confidence about the bright future the agrochemicals companies in India are entering in. Dhanuka Agritech is one such company, which is making inroads into this business, and is doing rather well.

Dhanuka Agritech Limited is a part of Dhanuka group and is the umbrella company for the business of Agro-Chemicals,Fertilizers, and Seeds.The Company is operating in pesticides formulations and seeds business. Volume of seeds business is, however, negligible as compared to total business volume.

As per the details provided by the management, they have 4 modern manufacturing facilities at Gurgaon and Sohna in Haryana, Sanand in Gujarat and Udhampur in J&K for formulation of various grades of pesticides, fungicides, miticides, weedicides, plant growth stimulants, plant growth regulators, foliar fertilizers and sticking agents. They also have 2 Seed Processing Units at Mandideep in M.P. and Turkapalli (Hyderabad) in Andhra Pradesh.

Performance and Outlook

The company has a good network, and thus it provides a good link with the farmers. In the business of agrochemicals, marketing holds the key. It is rather tough to convince farmers, and make them use a new product. To be able to pursue them to use a new product, they need to be told the benefits by meeting each of them personally. Once the product establishes the presence in a certain region, then it is easily able to penetrate down the nearby areas on account of mouth to mouth publicity amongst the villagers themselves.

However, as I mentioned, that initially one has to pursue them. The company reaches out to more than 10 million farmers with its eco-friendly high quality crop care products. The Agri-Division has a pan-India presence through its marketing offices in all major states in India and a dealer network of 15,000 across India.

The effect of good marketing reflects in the way, the company has grown in numbers. In the last three years, its top line has improved from Rs 200 cr to Rs 337 cr. The improvement in net profit is even more pronounced, largely on account of improvement in margins. The net profit has increased from Rs 10.5 cr to Rs 23 cr. The story about the improvement in numbers does not end here as the company has already recorded a bottom-line of Rs 17 cr for half year ending Sep'09, almost 35% higher than Rs 13 cr for an year ago period.

The management seems content about growing steadily, as in the last many years, one cannot see any equity dilution or debt raising. Their approach has been that of conservative promoters, which is rather good for those seeking steady gains over the years. They paid a rather hefty dividend of Rs 6 per share, with the yield turning out to be greater than 3%, however that could be attributed to the fact that promoters hold almost 90% equity in the company. With such a dividend they could pocket in Tax free income of Rs 5 cr.

It's a fact that the Indian agrochemical industry has great potential to grow. Although, input cost of agrochemicals has increased in India but still overall cost of production of agrochemicals in India is much lower in comparison to Western countries. With the advancement of Indian Technology, and the renewed focus on the agriculture as the sector, Dhanuka Agritech provides a safe investment option. The company is available at reasonable valuations, and with the management playing it safe, one can expect a steady capital appreciation, with good stream of income coming from dividend.

Note: The stocks discussed at MPS thru blog postings are neither a part of “Business Insights” issue nor a “Penny Stocks” which we reco/publish for paid subscribers. These are just stock specific views by MPS team; one MUST do the due diligence before doing any investment based on our reco.

To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com

Shyam Star Gems - Steer clear of this stock

In the month of June, I had come out with an article on Shyam star gems, with the heading being that "Something is cooking in here" (can be accessed here). It seems I was rather right about the company. These days the number of queries regarding this company have again increased, and thus I would like to make a few points clear and would rather ask the investors to steer clear of this company.

The stock had a roller coaster ride, which could have turned a guy from rags to riches and then again to his original stature, and that too within a period of just 18 months. I am saying this, because a look at charts says all. The stock price rose from a low of Rs 7 in Dec'06, to touch a high of Rs 195 in Jul'08, and then again back to Rs 5. The first thought that crosses the mind, on hearing about such a sharp movement, that some kind of stock-split must have happened or bonus shares must have been issued. In this case, no such thing happened and the fall of the cliff was real. These days, the stock has again gained some momentum and is hovering around Rs 25.

At a CMP of Rs 25, the company quotes at a market cap of Rs 17 cr, while its net profit for FY2008-09 stood at Rs 16 cr. It was only before the results for June and Sep quarter were announced that made the investors believe the company a great value pick. They thought that the company was available at a huge discount since they could get a company making annual profits in the range of 16-17 cr for just 17 cr.

However we at MPS had already mentioned that we are skeptical about the results being posted by the company. It was our view that how could a company operating in gems and jewelery division post Net profit margins in the range of 30-40%, when others such as Su-raj diamonds and Flawless diamonds find it difficult to maintain it even above 2%. Even Gitanjali, a leader in terms of diamond studded jewelery, has not been able to record such high margins.

We always felt that the income statement was not depicting the true status of the company, since there was a huge variation in numbers for consecutive quarters. So as we mentioned before, our fear seems to be coming true since the company could record only Rs 3.2 cr of revenue for half year ending Sep'09, while it made Rs 90 cr for the same duration ending Sep'08. Also the company had recorded a net loss of Rs 1.2 cr for the half year Sep'09, in comparison to Rs 12 cr recorded as net profit for period ending Sep'08. Thus these are the figures that represent the true status of the company, and all those who took stake in the company considering it a value buy at those figures should clearly steer away from it, as the price is still hovering around the same level of Rs 25.

Note: The stocks discussed at MPS thru blog postings are neither a part of “Business Insights” issue nor a “Penny Stocks” which we reco/publish for paid subscribers. These are just stock specific views by MPS team; one MUST do the due diligence before doing any investment based on our reco.

To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com

Final list of aspirants selected for interview on Nov 28th & 29th 2009

Regards,
Payal Saha, HR & Finance
HBJ Capital
Note: A seperate communication will be sent to each selected aspirants.
Join US, we are "Hiring Aggressively" : Link

Islamic investment - In conformity with the precepts of Islamic Shari’ah Law

There are two ways of getting profit (1) which Islam permits (2) which Islam prohibits.

Islam has forbidden earning from interests. And has counted as big sin and among the big sins there is no which forbidden in this manner

In India, Muslims are second largest population after Indonesia, Indian Muslims population estimated to be around 150, millions. In spite of this India is routinely ignored in the vast majority of the books articles on the subject of Islamic banking and or investments. Dow Jones has Islamic index, FTSE of Britain has not only Islamic Index but also a full fledged Islamic bank, but unfortunately there is not a single Islamic Product or an Islamic benchmark in Indian investment environment.

To gauge the scope of Islamic investment opportunities in the Indian stock market, it is imperative to examine stocks that conform to Islamic Shariah principles "Out of 6,000 BSE listed companies, approximately4,200 are Shariah compliant. The market capitalization of these stocks accounts for approximately 61% of the total market capitalization of companies listed on BSE.This figure is higher even when compared with a number of predominantly Islamic countries such as Malaysia, Pakistan and Bahrain. In fact, the growth in the market capitalization of these stocks was more impressive than that of the non-Shariah compliant stocks.

The software, drugs and pharmaceuticals and automobile ancillaries sector were the largest sectors among the Shariah compliant stocks. They constitute about 36% of the total Shariah compliant stocks on NSE. Further on examining the BSE 500 the market capitalization of the 321 Shariah compliant companies hovered between 48% and 50% of the total BSE 500 market capitalization.(Source: www.islamicequity.co.in)

Thus, India has a good Islamic structure which provides opportunity of riba free investment and finance which gives us lots of benefit.

So, Start Investing ethically in businesses in compliance with Shari`ah Law.

We are in the process of launching a package constituting of recommendations in strict compliance with Shari`ah Law. For details on the same,

Plz feel free to contact us on info@hbjcapital.com

Sundaram Multi Pap Ltd. - First stationery and now Education, might do well

Stationery and Education go hand in hand and that's exactly what Sundaram Multi Pap is planning to do. Sundaram is already a well known player in the field of stationery, and the company is rightly foraying into software creation for education purpose. This will be a high margin business in comparison to that of stationery, and if the company finds enough market for its products, one may see substantial improvement in the bottom-line of the company.

Basic Details

The Company designs, manufactures and markets paper stationery products exercise note books, long books, note pads, scrap books, drawing books, graph books - for students of all ages, as well as office/ corporate stationery products and printing, writing & packaging paper. Company has over 190 varieties of paper stationery products under the brand “Sundaram” which is very popular among the student communities and enjoy very high reputation in the market for its superb quality and durability.

At the start of the Company in the year 1995, the Company had a capacity of 5 tons per day of conversion of paper into paper stationery, which was increased to 20 tons per day in 1998 with the addition of two German made machines, to 50 tons per day in 2001 with the addition of one more unit of manufacture, and to 60 tons per day in 2003 with the addition of one more unit of manufacture. Thus the good thing about the management has been that its been there constant endeavor to enhance the capacity of the company.

Recent Expansion

The company has been constantly upgrading its technology in order to provide quality stationery and retain its brand name. Also the stress on quality helps it to maintain higher margins than its peers. Sundaram's expansion plans at existing manufacturing facilities at Plaghar were completed in the first quarter of current year 2009-10. As per the management this is one of the most modern manufacturing facilities in paper stationery business put in place at a cost of Rs 14 Crores.

Company, has therefore decided to install two more such fully automatic exercise books machines in next one year and expect its annual capacity of converting paper into stationery to stand enhanced from present 20,000 tones to 27,500 tones.
This was all about stationery, which is a relatively low margin biz., and where the growth can only be experienced if capacity is enhanced. Let's see as to what the management plans to do under "Sundaram Edusys Pvt. Ltd."

Sundaram Edusys

The Company recently completed the procedure of forming its wholly owned subsidiary in the name and style of "Sundaram Edusys Private Ltd" and intends to offer education through various means through this subsidiary. The first step towards its objective has already been taken by the company by creating the trial version of the software consisting of Maharashtra SSC Board's 8th, 9th & 10th Std. syllabus course - as a virtual class in English and Marathi.

The management is expecting the final product to be floated in the market in the academic year 2010-2011. Also they are expecting to generate the total sales of around Rs 50 crore in the first year and subsequently expect it to cross 100 crore in the second year.

This was what the management is expecting, however to me a lot would depend on the acceptability of its software content. Such a product can both be a great hit amongst students and schools, and can also be a complete failure, if the student community do not find it worth. If suppose it does well, then company's profitability can increase many fold from the current status of net profit of Rs 8-9 cr. The scale is huge, as similar content can be developed for the students of other state boards. If the product does not do well, then the company will not have much to lose, as it is not a capital intensive business, where in huge capital deployed may go waste.

Note: The stocks discussed at MPS thru blog postings are neither a part of “Business Insights” issue nor a “Penny Stocks” which we reco/publish for paid subscribers. These are just stock specific views by MPS team; one MUST do the due diligence before doing any investment based on our reco.

To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com

The e-voting system is finally out - Use it and make the difference

The system for e-voting is finally out as reported in the leading financial daily. A few days back I had made a post (can be accessed here) regarding online voting instead of that postal ballot system. I would like to re-iterate that this system of e-voting is beneficial for minority shareholders and thus all those who could not vote on account of all the hassles involved with postal ballot should take the initiative the next time, and vote as per their decision.

This is because if all the minority shareholders start voting then certain non-favourable decisions can be avoided which would ultimately help the investors. The move will help in bring better transparency and will make the management accountable in a lot better way.

As per the information shared by the financial daily CDSL Ventures (CVL), a wholly-owned subsidiary of Central Depository Services (India), on Tuesday launched the e-voting system for listed companies. This system was inaugurated by, Corporate Affairs minister Salman Khurshid said at the inaugural function.

The e-Voting system would permit a company or its registrar to set up the schedule on the e-voting website and upload the resolution and register of shareholders . CVL would then generate and print a password on a pin mailer for each shareholder, which would be communicated to them along with the notices of the resolutions . Shareholders can access the e-voting website and cast their votes at any time during the voting period at a place of their convenience.

These days Investor education is something stress is being laid upon. We can regularly see advertisements being put on news papers about misuse of power of attorney of the de-mat account and the proposed system of e-voting is another step towards making investors an active participant in the proceedings and the decision making of the companies. The system was already in place in countries like US, China, Japan and South Korea, so one may say that we have been laggards w.r.t implementation, but its never too late.

Corporate Affairs minister Salman Khurshid has proposed to announce next year as Investor Education Year and the thrust will be given to investor education and investor knowledge. He intents to bring in savings of non-urban India into the exchanges, thus one could see more revolutionary steps in the future.


To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com

Tourism Finance Corporation of India Ltd. - A safe investment option

The Government of India in its pursuit to provide financial assistance to tourism-related activities/projects came up with an idea of Tourism finance corporation of India ltd. In accordance with the above decision, the IFCI Ltd. along with other All-India Financial/Investment Institutions and Nationalised Banks promoted a Public Limited Company under the name of "Tourism Finance Corporation of India Ltd. (TFCI)" to function as a specialised All-India Development Financial Institution to cater to the financial needs of tourism industry. The institutes involved behind setting up of TFCI are IFCI, SBI, LIC, Bank of India, United India Assurance company.

TFCI is a very safe and conservative play on the rapidly developing India's travel and tourism industry. There was an obvious impact on the tourism industry during 2008-09 on account of several factors, but the overall dynamics look strong for this industry. The tourism sector across the world faced number of challenges particularly in the wake of current global economic slow down. However, the foreign tourist arrivals have increased from 5.04 million in 2007 to 5.37 million in 2008 registering growth of around 6 per cent as against that of 14 per cent during the previous year. The terrorist attack in Mumbai on November 26, 2008 also had its compounding effect on tourist arrivals in India and particularly during the peak period of December, January and February. But, as I said that there are a number of factors favoring a steady growth in this industry.

According to World Travel and Tourism Council (WTTC) International inbound travel to India peaked at a record 5.37 million arrivals in 2008. India is a on a track of rapid growth, next only to China, and this culminates into higher disposable income of individuals and thus higher spend on tourism and leisure.

These days an increasing number of people are going on holiday trips within the country and abroad resulting in the tourism industry growing wings. India's travel and tourism industry, which is estimated to have generated approximately 100 billion dollars in 2008, will generate almost 275.5 billion dollars by 2018, growing at an average of 9.4 per cent over the last decade, according to the latest Tourism Satellite Accounting (TSA) research released by the WTTC.

Performance

The Company, during the last three years, had been pursuing to expand its portfolio by extending facilities to existing hotel properties for renovation, up-gradation, expansion and also for setting up new projects.The Company has also been considering new proposals for creating additional room inventory particularly in budget segment.

TFCI has been quite active in loan sanctioning and disbursements. The total sanctions during 2008-2009 were Rs.580.48 crore comprising of project-related sanctions Rs.510.65 crore and average investment in mutual funds Rs.69.83 crore (previous year project-related sanctions Rs.326.38 crore and investment in mutual funds Rs.39.83 crore). The total disbursement during the period 2008-2009 were Rs.275.80 crore comprises project-related disbursements Rs.205.97 crore and average investment in mutual funds Rs.69.83 crore (previous year project-related disbursements of Rs.148.67 crore and investment in mutual funds Rs.39.83 crore).

Its proactive approach towards recovery of Non-performing assets seems to be paying of. During the year 2008-09, the company took possession of 3 hotels located at Mukundgarh, Bikaner & Jaisalmer under the SRFAESI Act. Also, an amount of Rs.24.54 crore was recovered from NPA cases, which enabled to maintain the net NPAs at Zero. The capital adequacy for TFCI was more than comfortable at 59.69 per cent as on the 31st March, 2009 as against the norm of 10 per cent.

So far the performance has been good with a steady growth in bottom-line from 12 cr to Rs 29 cr in a period of 4 years. The other good thing about this company is its generous policy of disbursement of dividend. At the CMP of Rs 22, its dividend yield stands at around 4.5%. Thus, all those looking for safe investment havens, with a steady growth to the tune of 20-22%, TFCI is an apt option at CMP.

Note: The stocks discussed at MPS thru blog postings are neither a part of “Business Insights” issue nor a “Penny Stocks” which we reco/publish for paid subscribers. These are just stock specific views by MPS team; one MUST do the due diligence before doing any investment based on our reco.

To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com

Usha Martin Education and Solutions Ltd. - The company into education space and making big gains

These are the days of boom in education space and everyone is eying that sector with an intention to foray and make a big impact. It is basically the IT companies which are making an entry especially after the slump in IT sales last year. It is rather easy for an IT company to change its line of business and especially the transition from Software to Education is easy, if one concentrates on the implementation of ICT across schools or develops software pertaining to education space (our Business Insight recommendation for the month of October started the transition in early 2006, and is reaping benefits with tremendous increase in revenue and profitability).

Now, coming back to the company Usha Martin Infotech ltd., the subject matter of this post. Actually the new name of the company is Usha Martin Education and Solutions ltd. The management changed the name in order to reflect the new line of business of the company. If we look at from the where the company has emerged then one cannot doubt the credentials of the management. The Company was a part of the Usha Martin Group, which was formed in India in the early 1960s with the establishment of Usha Martin Industries Limited (UMIL), engaged in the manufacture of steel wires, wire ropes and other related products. The group was promoted by Mr. B. K. Jhawar, who is the Chairman of the Company.

Usha Martin's IT division, was demerged into a new company named as Usha Martin Infotech Limited (UMITL). In accordance with the Scheme, UMITL issued and allotted one equity share of Rs. 5/- each to all the shareholders of the company in the ratio of one equity share of Rs. 10/- each held by them in the Company.

The new initiative - Learning Business

During the year, the learning business division of the company completed its first full year of operation. As part of portfolio of educational offerings, the company has started conducting classes/trainings for formal degree courses (MBA, MCA, BBA and BCA), affiliated to Punjab Technical University.

As per the management, till Mar'09 the learning division was operational at three centres (two at Kolkata and one at Ranchi), however they had mentioned that another centre at Patna is scheduled for commencement in June'09 with similar course offerings for which necessary infrastructure arrangements have been done. So, by now the company should be having 4 learning divisions operational.

During the year FY2008-09, the revenue of the company increased by 390% (to Rs. 282.83 lakhs) as compared to last year. If we break up the revenues, then out of 2.8 cr, 2.3 cr came from learning division, while the rest of it was from other divisions. The profitability of Learning Division is good with margins in the range of 10-11%. During the year, the Company incurred capital expenditure of Rs 143 lakhs and the entire amount was provided by internal generation.

For the half year ending Sep'09, the company has recorded revenues of Rs 3.3 cr, more than what it did in FY2008-09. The net profit for the mentioned period stands at Rs 33 lakhs, whereas it was just 16 lakhs for half year ending Sep'08. Thus the company has been showing significant growth in numbers. Its results for different quarters can be highly fluctuating. It might even show a loss in some quarter of the year. This is because of the company's revenue recognition policy. They record revenues in their income statement, only when the classes commence, while the expenditure is recognized as and when it is incurred.

Actually this stock has already been suggested as Instant Profit recommendation # 2 for our paid subscribers, and the good thing being that they have already pocketed gain of 15% (not everyone could buy as the volume was low initially). Thus to be able to benefit, one needs to be on his toes to be able to recognize the right company and the right sector at the right point of time, if playing for short term gains.

Note: The stocks discussed at MPS thru blog postings are neither a part of “Business Insights” issue nor a “Penny Stocks” which we reco/publish for paid subscribers. These are just stock specific views by MPS team; one MUST do the due diligence before doing any investment based on our reco.

To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com

Islamic investment - In conformity with the precepts of Islamic Shari’ah Law

The term ‘Islamic Investment ’ means a joint pool wherein the investors contribute their surplus money for the purpose of its investment to earn halal profits in strict conformity with the precepts of Islamic Shari’ah. The subscribers of the shares may receive a document certifying their subscription and entitling them to the pro-rata profits actually accrued to the company. These documents may be called ‘certificates’ ‘units’ ‘shares’ or may be given any other name, but their validity in terms of Shari’ah, will always be subject to two basic conditions:

Firstly, instead of a fixed return tied up with their face value, they must carry a pro-rata profit actually earned by the company. Therefore, neither the principal nor a rate of profit (tied up with the principal) can be guaranteed. The subscribers must enter into the fund with a clear understanding that the return on their subscription is tied up with the actual profit earned or loss suffered by the Fund. If the Fund earns huge profits, the return on their subscription will increase to that proportion; however, in the case the Fund suffers loss, they will have to share it also, unless the loss is caused by the negligence or mis-management, in which case the management, and not the Fund, will be liable to compensate it.

Secondly, the amounts so pooled together must be invested in a business acceptable to Shari’ah. It means that not only the channels of investment, but also the terms agreed with them must conform to the Islamic principles.

Conditions for investment in Shares

In the light of the foregoing discussion, dealing in equity shares can be acceptable in Shari’ah subject to the following conditions:

Certain businesses are incompatible with Shari`ah Law. Thus, stocks of companies in these businesses are not considered suitable for Islamic investing. Incompatible lines of business include :
• Alcohol
• Pork-related products
• Conventional financial services (banking, insurance, etc.)
• Entertainment (hotels, casinos/gambling, cinema, pornography, music, etc.)
Shari`ah scholars also do not advise investments in tobacco manufacturers or defense and weapons companies.

Company’s main business will be halal, if it does not indulge in any haram business, like financial dealing based on interest, gambling, liquor, pork / entertainment, media, casino and conventional and any other impermissible activity.

If a share of company bought at face value of Rs10 (for e.g), a person can’t sell this share in more than the par value unless the company have some fixed assets like raw material, machinery, land. If a company have no fixed assets then buyer can sell only at its face value price and can’t sell at above par value extra money will be pure interest.

Normally every company takes some interest bearing loan from banks or other institutions and some time when they have excess money they lend money on interest. In both cases there is a group of Islamic scholars who do not permit to buy or sell the stocks of such companies. Other Ulema and scholars of Sub Continent and also some other Islamic Scholars do permit it with following conditions.

Companies are removed from the selection pool if their total debt divided by their trailing 12-month average market capitalization is greater than or equal to 33%; if the sum of their cash and interest bearing securities divided by their trailing 12-month average market capitalization is greater than or equal to 33%; or if their accounts receivables divided by their total assets is greater than or equal to 45%.


Start Investing ethically in businesses in compliance with Shari`ah Law.

We are in the process of launching a package constituting of recommendations in strict compliance with Shari`ah Law. For details on the same,

Plz feel free to contact us on info@hbjcapital.com

Try our Value pick and feel the difference

At MPS we believe in saying less and delivering more. This is because, we feel that one should always get more than what is promised. Say for example, we mention 70-80% gain in 1 year holding period of our value picks. But, on the performance front we outperform our predictions.

Value Pick Stock Reco :

1. Value Pick for the month of Aug : The stock was suggested at a price of 28-29 and the CMP is 40. This translates into a gain of more than 40%. The company has registered a growth of 50% in its net profit for the quarter ending Sep'09.

2. Value pick for the month of Sep : The stock was suggested at a price of 144 and the CMP is Rs 184. This translates into a gain of 27%. For the half year ending Sep'09, the company has registered a net profit of Rs 19.53 cr, which is almost equal to the net profit of Rs 20 cr for the entire Financial year 2008-09

3. Value pick for the month of Oct : The stock was suggested at an avg. investment price of Rs 97-100. The CMP is Rs 107. This translates into a gain of 10%. For the half year ending Sep'09, the company has registered a gain of 20% in both top and bottom line. We expect the company to triple its capacity by Mar'10.

- Team MPS

CIPLA - Battling it out

The Chemical, Industrial & Pharmaceutical Laboratories, which came to be popularly known as Cipla was founded in 1935, and since then it has taken Indian pharmaceutical industry to a completely different level. On October 31, 1939, the books showed an all time high loss of Rs 67,935. That was the last time the company ever recorded a deficit, and if one is to look at the present status of the company, then the Market cap of more than 20,000 Cr speaks for itself. According to ORG-IMS, Cipla remained the leader in the domestic market, as on 31st March 2009. The track record of the company has been extremely good with respect to approvals from US FDA and other major international regulatory agencies (we all know that how some of the offerings of other big companies like Ranbaxy were disapproved recently).

These days the company is in news on account of being involved with various multi national
companies on terms related to patent. Following the change in the patent laws in March 2005, product patents have been brought into force with effect from January 1995. As expected, this has triggered a series of litigation's. Cipla too has challenged some of these cases involving both pre-grant and post-grant patents.

THE Supreme Court recently rejected Swiss drug maker Roche’s petition to stop Cipla from selling the generic version of its cancer drug Tarceva, to ensure that Indians have access to the medicine at a lower cost till the Delhi High Court decides on Cipla’s patent-challenge plea.

Roche sells Tarceva for Rs 4,500 per tablet, while Cipla’s generic is sold at Rs 1,500. Roche received patent for Erlotinib in India in 2007. Cipla challenged it last year by filing a post-grant patent for the drug. And it decided to launch the generic version of the drug in January without waiting for the Delhi High Court’s ruling on its patent opposition. Well, if one is to take into account the importance of Tarceva, then it can't be denied that its one of the most important drug with respect to those suffering from Cancer. I feel public interest can't be ignored in such cases, and one should be allowed to sell the generic version at lower cost. However, its equally important to assure monetary gains to the company which invented the drug. This is possible by introducing a permanent compulsory licensing system for all drugs, whereby a suitable royalty on net sales should be paid to the inventor and patent holder. In this way drugs can be made available for the healthcare needs of our large population, at affordable prices.

The company is engaged in other battle with global pharma major Bayer over production and sale of generic version of liver and kidney cancer drug 'Nexavar'. Bayer had filed a petition claiming claiming exclusive patent right over the cancer drug.

The outcome of these two cases can affect the earnings of Cipla in a major way for years to come. What I feel is, that keeping public interest in mind, decision might go in favour of Cipla in both the cases as the price difference is huge b/w the drugs supplied by Cipla and the one by the respective patent holders. Cipla is one of those companies, which can at all times easily form a part of conservative portfolio.

Note: The stocks discussed at MPS thru blog postings are neither a part of “Business Insights” issue nor a “Penny Stocks” which we reco/publish for paid subscribers. These are just stock specific views by MPS team; one MUST do the due diligence before doing any investment based on our reco.

To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com

NEPC India - into Non-Conventional energy generation

The Non-conventional energy assumes high importance in the days of spiraling crude prices, and anyone and everyone seems to be eying that space or rather claiming to be a big player in that sector. I came across this penny stock NEPC-INDIA ltd., and would like to make sure that no one falls for the claims being made by the company. Since, I have been getting many queries on the same, I thought it prudent to put it as a post.

NEPC India Limited is more than a 30 year old company. The management claims it to be the one which pioneered wind energy in India, and also claims that it has established 2500 MW in India and abroad. However consequent to the process of transferring its wind energy division to M/s.Southern Wind Farms Limited as per the slump sale agreement dated 16-01-2006, the Company is presently engaged in the business of dealing in of NEPC Solar Dual Power Modules and generation and selling of electric energy.

Now, that seems surprising, rather shocking that a company which actually pioneered the whole wind energy generation had to actually sell of its prominent division.

The company is again making news these days, and is claiming itself to be at the forefront of technological innovation in the solar energy space. As per the management, the company has diversified into manufacturing Solar Technology compatible power systems- Inverters / UPS of various capacities available with or without solar panels. According to them, the company has achieved installation of more than 10000 NEPC SOLAR DUAL POWER SYSTEMS in India, without much publicity.

Another big announcement that they have been making is that they have got all the approvals from the State and Central govt. for an SEZ project for manufacturing products for generating power from Non-Conventional energy resources. The SEZ will be located in Tamil Nadu in about 100 acres of land.

They claim it to be their own SEZ i.e. NEPC-SEZ and expected it to commence operations from November 2009. They expected investments in the range of 4000-5000 crore and also expected NEPC to get an annual income of 50-60 cr from the same.

Now, looking at the above claims, one may feel enticed towards this penny stock, however I would like to caution the investors against putting money in this company. The results of the company do not support their claims. They have making losses for the last many quarters, and even their annual income of Rs 2-3 cr does not match the observations made by the company. Another negative is that the promoter holding is very low at 12%.

Companies around the world start making announcements related to the sector which seems bright to lure in the naive investors, however one should always judge the validity of announcements to take an informed decision on the company.

Note: The stocks discussed at MPS thru blog postings are neither a part of “Business Insights” issue nor a “Penny Stocks” which we reco/publish for paid subscribers. These are just stock specific views by MPS team; one MUST do the due diligence before doing any investment based on our reco.

To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com

Relaxo Footwear - Sustained revenues + Decent growth

There are some companies which keep on performing well without being noticed. They do it silently, without making much news. I earlier posted an article on TTK Prestige, and here is another company Relaxo Footwear. Both these companies are well known and easily accessible brands, but somehow it happens that investors ignore such companies.

Relaxo stepped into the footwear industry in 1976. It started off with the manufacture of Hawaii slippers and subsequently diversified into manufacturing casuals, joggers, school and leather shoes. It has experienced a record-breaking growth rate of 4800% within the last 10 years! From a modest sale of around Rs. 1 million in the year 77-78, it has today crossed the Rs. 4000 million+ figure.

Relaxo is a brand in itself, but it is one of those brands that caters to the need of masses. It has never tried to establish itself at the higher end of strata, but does high volume business with the lower-income group people. It has a kind of monopoly in the slippers segment, with its brand of Hawaii slippers.

Why did I say high volume ? This is because as per the data provided by the company its manufacturing capacity, of 100 million pairs per annum, is second only to Bata’s. It also has the capacity to manufacture 300,000 pairs of Hawaii slippers per day which is the highest in India.

The company is trying to explore the overseas market and has set-up a division Relaxo Exports under Relaxo Footwear Ltd. This division has been exporting footwear to the United States and Europe. It has also been a partner to Nike in the production of Joggers. However, the contribution from this division is still very small in comparison to the domestic sales.

The footwear business of Relaxo is certainly a recession-proof biz., and that reflects in the way it has been able to grow in the last 3-4 years. The company recorded sales of Rs 200 cr in FY2005-06, while in FY2008-09, it achieved a turnover of Rs 409 cr. More than the growth in top-line, the complimentary aspect about their performance has been the improvement in operational efficiency. While their net-profit margin was only a meager 1.62% in FY2005-06, they have continuously scaled it over the period and recorded NPM of 3.48% for FY2008-09. This improvement in margin helped them more than quadruple their profit from 3.2 cr to Rs 14.2 cr for the same period.

Continuing with its good performance, the results for the latest two Jun and Sep quarters have been stupendous. For the half year ending Sep'09, the company has recorded 33% growth in revenue over corresponding half year ending Sep'08. Importantly, the company could record a two-fold increase in net profit from Rs 6 cr previously to Rs 19.5 cr for half year ending Sep'09. This is more than the entire profit for previous financial year. The company's R&D in the area of import substitution of various components and spares seems to be paying off, because even after a 33% jump in sales, the expense on raw materials and purchased goods remained largely same.

If one is looking at a sustainable revenue model packed with a decent growth, it provides a right investment option, provided the duration of investment is medium (2-3 years) to long term.

Note: The stocks discussed at MPS thru blog postings are neither a part of “Business Insights” issue nor a “Penny Stocks” which we reco/publish for paid subscribers. These are just stock specific views by MPS team; one MUST do the due diligence before doing any investment based on our reco.

To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com

Online Voting System - The best thing that can happen

The news I am going to discuss is definitely going to be music to the ears of many active Investors. Well the news as it stands is that a leading Depository in the Country is planning to launch Online Voting System in Place of Postal Ballots. Don't know how many active participants in the stock market actually go through the details in the postal ballot, and even go to the extend of voting through that postal ballot form.

But for those who used to participate in this voting process, and used to exercise their right of voting to have a say in the company, the new Online voting system will come as a boon for them.

Shareholder's Participation

As per the Companies Act and Sebi regulations, companies have to mandatorily seek the shareholders participation through postal ballot for special resolutions such as preferential allotment and buyback. Indian laws define postal ballot as voting by shareholders through postal or electronic mode against voting personally at a company's general meeting

Many of you might have received such postal ballots, explaining you the purpose of sending the postal ballot, and the new happenings, for which your consent is required by the company. However, most of us ignore such notices, and the management assumes, that the shareholder does not have any objection for the proposed initiative, and thus the resolution is passed.

Through this post, I would also like to bring to your notice the importance of assuming yourself as a part owner of the company. Companies Act, ensure that we are provided full access to our right of say in the operation of the company, but after receiving the postal ballot, it is up to an individual to take active participation and voice his concern, in case any.

Developed countries have a well developed approached towards shareholder activism, and the system of Online Voting is a common feature in countries like US, Japan. However, in India we continued with the same system of Postal ballot, which was both time consuming and a costly system. Also, the shareholders did not take much interest considering the hassles involved in posting back the same form.

After the introduction of Dematerialization, Online voting was one front where our system was lacking behind. However, it is never too late, and the introduction of Online voting should see improvement in Investors activation towards the developments in the company.

I would personally urge all the readers to take part in the process, and ensure transparency and enhanced level of corporate governance, because ultimately shareholders themselves are going to benefit.

To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com

Telecom - Competition making life tough, even for the largest player

I came across this news in a leading Financial daily, and the news definitely makes sense. The news was about blow up in telecom sector, and if one looks deeply into this sector, then over a period of time it has definitely lost its sheen.

The competition in this sector seems to be growing exponentially with every passing day. Also the telecom regulator keeps coming up with innovative ideas to make the life of Telecom companies even worse. The market was already very competitive, and the announcement by Telecom regulator that it would explore call charges on a per-second basis has really set the competition on fire.

Tata was the first to launch pay per-second plan, but as it always happens, all other operators jumped in sooner or later. Bharti usually keeps its tariffs high, as the company has a huge base of corporate clientele and also because of its extensive infrastructure and better connectivity than any other, it commands a certain premium. But, recently it too had to come out with the same plan.

The level of competition can be judged from the fact that each telecom circle has 8-9 players. Thus the number of factors that can lower the profitability of such companies are accumulating one over the other. First of all, the number of players have increased, secondly the Average revenue per user (ARPU) is bound to come down on account of calls being charged on per-second basis.

Also, since switching over cost is so low these days that no one is really bound to any telecom operator except at high end level. The companies are trying to promote their valued-added services, but not many subscribe for such services as the cost of subscribing for such services is usually very high.

Business is one place, where one needs to keep innovating and also diversifying in order to sustain the growth and maintain the market share. Bharti's core business has been that of Telecom operation, and it has not diversified to the extent that other sources can contribute comparable revenues. It ventured into cash and carry outlet business in collaboration with Wal-Mart, but the pace of progress has been quite slow. The market cap of Bharti and other telecom operators has come down in the last 1 month. However, the lowering of valuations does not necessarily make them attractive for investment.

I feel that anyone contemplating buying a stake in Telecom companies should restrain from doing so, be it Bharti or any other company, as competition will lead to crumbling of many company in the near future (mostly the new entrants).

To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com

Warren Edward Buffett - An investor by birth

Sometimes knowing the details of personal life of stalwarts makes us realize that such greats can be seen in the making even early on in their life. Since we are dealing with stock market, hence I find none other than Warren Buffett the most suitable person for this article.

Generally we discuss on the Investment principles of Warren Buffett, but here we would like to discuss his personal life and his journey.

About Buffett’s Personal Life

Warren Edward Buffett was born on August 30, 1930. The only boy, he was the second of three children, and displayed an amazing aptitude for both money and business at a very early age. His father was a stock broker turned Congressman.

In 1947, a seventeen year old Warren Buffett graduated from High School. It was never his intention to go to college; he had already made $5,000 delivering newspapers (this is equal to $42,610.81 in 2000). His father had other plans, and urged his son to attend the Wharton Business School at the University of Pennsylvania. Buffett stayed two years, complaining that he knew more than his professors. When Howard was defeated in the 1948 Congressional race, Warren returned home to Omaha and transferred to the University of Nebraska-Lincoln. Working full-time, he managed to graduate in only three years.

Buffett married Susan Thompson in 1952. They had three children, Susie, Howard, and Peter. The couple began living separately in 1977, though they remained married until her death in July 2004. His daughter Susie lives in Omaha and does charitable work through the Susan A. Buffett Foundation and as a national board member of Girls, Inc. On his 76th birthday Buffett married his longtime companion, Astrid Menks, who had lived with him since his wife's departure

An Investor by birth

Warren showed an Investing aptitude since his early childhood. He was a born Investor though he refined his Investing sense under stalwarts like Benjamin Graham.

As a boy, irrespective of his family background, he delivered newspapers to make extra money and this probably sparked his interest in the media where he has made several successful investments including the Washington Post Company, a stock that has made him a lot of money and which he vows never to sell.

At the age of 13, Buffett filed his first income tax return, deducting his bicycle as a work expense. At the age of 15, Buffett and a friend spent $25 to purchase a used pinball machine, which they placed in a barber shop. Within months, they owned three machines in different locations.

Association with Benjamin

Buffett enrolled at Columbia Business School after learning that Benjamin Graham and David Dodd, two well-known securities analysts, taught there. Buffett graduated and wanted to work on Wall Street.

Buffett offered to work for Graham for free but Graham refused. He purchased a Texaco gas station as a side investment, but that venture did not work out as well as he had hoped. Meanwhile, he worked as a stockbroker. He finally got the job with Benjamin Graham’s firm and, as he generously acknowledges, learned a lot about stock investment from The Master.

Graham retired and folded up his partnership. Since leaving college six years earlier, Buffett's personal savings grew from $9,800 to over $140,000. He returned home to Omaha and created Buffett Associates, Ltd., an investment partnership.

Berkshire Hathaway

In 1962, Buffett discovered a textile manufacturing firm, Berkshire Hathaway, that was selling for under $8 per share. Through his partnership, Buffett eventually purchased 49% of the outstanding shares. Buffett maintained BH's core business of textile milling, but by 1967 was expanding into the insurance industry and other investments.

Berkshire first ventured into the insurance business with the purchase of National Indemnity Company. In the late 1970s, Berkshire acquired an equity stake in the Government Employees Insurance Company (GEICO), which forms the core of its insurance operations today (and is a major source of capital for BH's other investments). In 1985, the last textile operations (BH's historic core) were shut down.

Berkshire Hathaway , a massive holding company headquartered in Omaha, Nebraska, USA, that oversees and manages a number of subsidiary companies. Berkshire Hathaway's core business is insurance, including property and casualty insurance, reinsurance and specialty nonstandard insurance. The Company averaged a phenomenal 25%+ annual return to its shareholders for the last 25 years while employing large amounts of capital and minimal debt.

- Team MPS