Assam Co. - BUY

Assam company - The company, which is the oldest tea company in the world,
has also entered in to oil & gas exploration business few years back.

oil, tea, power and special economic zones as focus areas for the company at
present.


in tea business The sales realization at Rs.86.50 per kg in 2006 was better
than the previous
year's Rs.76.28 per kg - this happened after a period of 4 years almost,
when the tea market trends have been very unfavorable . current tea prices
are still better by 10% compared to previous year


With a vision of increasing exports further, the Company would be able to
improve upon its price realization and a target of higher Orthodox teas
production would also help towards it.

management is looking at inorganic growth in the oil and gas sector,
including acquiring assets overseas. We will need to go for capital raising
to finance these projects.

As part of its plans to expand the tea business, the company is mulling to
set up more tea bars (joints retailing ready to-drink tea).

company plan to have 100 tea bars in 3 years from 8 now as per presse
release of few months back.

Of the 8 tea bars that the company currently operates, seven are in
Kolkataand one in Mumbai.

The tea bars, operating under the name Camellia, will be set up under both
company and franchisee-owned models.

Assam Co recently started producing oil condensate and natural gas from the
Amguri field in Assam.

for they year ended dec 07 company reported total sales of rs 151 cr ag rs
149.5 cr while net profit went up to rs 10.45 cr from 7.45 cr on equity of
rs 30.46 cr.

outlook is encouraging as current tea prices are firm & outlook for oil &
gas exploration industry is good.

stock having reacted from the high of rs 57 to current price looks very
attractive at current price.

investors can take 1/3 of qty at current levels & remaining on reactions
around 24/25.

Rohit