Dollex Industries Ltd. (Rs 106.6) - carbon credit -

Dollex Industries Ltd. (Rs 106.6) - carbon credit -
windfall gain.
Dollex Industries has inked a deal with the UK's Novera
Energy, one of the largest carbon traders in the UK and
Australia. The deal will bring in a cash inflow of Rs1000mn.
This will help the company in setting up Rs 2000mn
integrated unit in Gujarat. The Company had earlier
emerged as the highest bidder in the tender floated by
Commissioner of Sugar - Maharashtra for Kalamber SSK
Ltd. In view Mandatory 10% Ethanol Blending program by
GoI, the Company plans to infuse a further Rs 10 crores into
Kalamber SSK over the next year. The Company will
expand the Sugar crushing capacity of the unit to 10000
TCD and further add 100 KLPD of Ethanol capacity and 30
MW of Co-Generation power.This is the second major cooperative
sugar Company acquired by the Company in the
past one year, the earlier being Godavari Manar SSK. The
Company plans to make a further 3 acquisitions to fuel its 3
year plan of becoming one of the largest integrated players
in its segment.The current sales (FY07) of the company are
Rs.25.4mn with a net profit of Rs16.5mn. The stock is
trading at 35.3x its trailing twelve months EPS of Rs.2.81.
We recommend a BUY on the stock.

--- Networth Stock Broking Ltd