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THE COMPANY:THE COMPANY:THE COMPANY:THE COMPANY:

IMP was established in 1961 and is now over 4IMP was established in 1961 and is now over 4IMP was established in 1961 and is now over 4IMP was established in 1961 and is now over 4

decade old Company havingdecade old Company havingdecade old Company havingdecade old Company having two very welltwo very welltwo very welltwo very well

established state of art Manufacturing facility atestablished state of art Manufacturing facility atestablished state of art Manufacturing facility atestablished state of art Manufacturing facility at

Mumbai &Mumbai &Mumbai &Mumbai & Silvassa manufacturing entire range ofSilvassa manufacturing entire range ofSilvassa manufacturing entire range ofSilvassa manufacturing entire range of

Power & DistributionPower & DistributionPower & DistributionPower & Distribution Transformers,Transformers,Transformers,Transformers, Electrical &Electrical &Electrical &Electrical &Digital Measuring Instruments, TestingDigital Measuring Instruments, TestingDigital Measuring Instruments, TestingDigital Measuring Instruments, Testing

Equipments & Test Benches and has got wideEquipments & Test Benches and has got wideEquipments & Test Benches and has got wideEquipments & Test Benches and has got wide

experience in this field.experience in this field.experience in this field.experience in this field. "IMP" is a name to be"IMP" is a name to be"IMP" is a name to be"IMP" is a name to be

reckoned with for manufacturer of quality AUTOreckoned with for manufacturer of quality AUTOreckoned with for manufacturer of quality AUTOreckoned with for manufacturer of quality AUTO

EHV Power, distribution, Special Purpose,EHV Power, distribution, Special Purpose,EHV Power, distribution, Special Purpose,EHV Power, distribution, Special Purpose,

Furnace, Thyristor dutyFurnace, Thyristor dutyFurnace, Thyristor dutyFurnace, Thyristor duty Transformers, &Transformers, &Transformers, &Transformers, &

Reactors. Backed by continuous inReactors. Backed by continuous inReactors. Backed by continuous inReactors. Backed by continuous in----house appliedhouse appliedhouse appliedhouse applied

technicaltechnicaltechnicaltechnical research and with use of best qualityresearch and with use of best qualityresearch and with use of best qualityresearch and with use of best quality

raw materials have enabled us toraw materials have enabled us toraw materials have enabled us toraw materials have enabled us to comply with thecomply with thecomply with thecomply with the

latest exacting standards both National andlatest exacting standards both National andlatest exacting standards both National andlatest exacting standards both National and

International,International,International,International, Thousand of Transformers areThousand of Transformers areThousand of Transformers areThousand of Transformers are

workingworkingworkingworking round the clock in our Country asround the clock in our Country asround the clock in our Country asround the clock in our Country as wellwellwellwell

as across the Globe.as across the Globe.as across the Globe.as across the Globe.

KEY STATS:-

BSE: 517571 |NSE: INDLMETERISIN: INE065B01013

Current Price 220Target Price345,400(SHORT TERMTARGETS).

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TEAMSTOCKRESEARCHERSPvt. Ltd.

3 SUBHASHNAGAR CORNER,RAIYA ROAD,

RAJKOT, Gujarat, 360007

www.niftyviews.com

CONTACT:09327744250

CST NUMBER: AADCT0544JST001

DATE: 22.12.07

IMP Powers

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Power Sector has been performing

well in past couple of months.Expectations from power counters arehigh and returns should be decentover next two quarters. The companymay see good results as the demandfor transformers is expected to pickup. Some of our past picks have allperformed well. We hadrecommended diamond cable around330 levels. The stock has hit a new lifetime high of 520 recently. We had a

short-term target price of 500 for thesame. We recommend accumulateeven at these levels on DiamondCable. With the expected capacityexpansion in the Indian power sectorwe will see an addition of transformerdemand. The demand will be due totwo factors namely replacementdemand and fresh demand.. As perthe Government of Indias plan,78,000 MW of power generation

capacity will be added in 11th Five-year plan. In addition, improvementsin transmission and distributionsector coupled with the replacementdemand will also add to the urgentneed for transformers. According toindustry estimates, the transformerindustry has been growing atapproximately 25% CAGR for last twoyears and is expected to maintain thismomentum for next 2-3 years. This

growth will be driven predominantlyby domestic market requirements andpartly by exports to the Middle East,

Africa, Europe and the United States.

POWER SECTOR :

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IMP Powers Limited (IMP) offers an opportunity to invest in the high growthtransformer sector. IMP is one of the oldest player in the power equipmentssegment with a product portfolio of various types of transformers, industrialmeters and testing equipments. Transformers constitute about 95% of its

FY2007 sales. The Company has successfully turned around after a badphase in 2000-2005. Subsequent to the turnaround, it has achieved a CAGRof about 55% in sales over last 2 years. The EBIDTA margins have improvedto a current level of 16.6% for FY 07 as against a low of 4.2% in FY 05because of growth in sales and operational efficiency. Further the companyhas a very healthy order book position. The Company is undertaking anexpansion project with a capital outlay of Rs 280 mn including workingcapital. The project includes expansion of its manufacturing facilitiessituated at Silvassa (U.T) from existing 3,600 MVA to 6,000 MVA. The Fundsmanaged & advised by MOVCAPL have invested Rs 190 mn to part financethe expansion project. Brescon Corporate Advisors Ltd., were the financialadvisors to the company on this deal. Further, promoters of the company &Brescon Corporate Advisors Ltd have subscribed to warrants to finance thebalance of the capex program. Additional trigger for the stock is, IMPPL ishaving land at Kandivli (W) in Mumbai. If it decides to develop it intoresidential / Commercial complex, it will fetch additional money for theCompany.

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MANDATORY DISCLOSURES:

This document is for information only and is meant for the use of the Recipient & not for circulation. Theinformation contained in this document has been taken from publicly available information trade andstatistical services & other sources. While the information contained herein is from sources believed tobe reliable, we do not hold ourselves responsible for its Completeness andaccuracy. All opinions and estimates included in this report constitute our judgment as of this date andare Subject to change without notice. Investors are expected to use the information contained in thisreport at their own risk. This report is not and should not be construed as an offer or the Solicitation ofan offer to buy or sell any securities. TEAM STOCKRESEARCHERS and its affiliates may act as marketmaker or have assumed an underwriting position in the securities of companies discussed herein andmay sell them to or buy them fromcustomers on a principal basis..

INVESTMENT RATIONALES:

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The company is similar to Diamond Cables with a recentturnaround phase and a great order visibility. The current orderbacklog is around 130 crores. The stock trades at 17X Fy07.Webelieve that with 44% capacity expansions we might see good timesahead .Invest with a 1 year view and do remember to book partial

profits when our short term targets reach

VALUATIONS :